Retailers see big potential in China and India, Asia’s fastest growing economies, with populations of more than one billion each. And the evidence is in activity, right across the region.
China will become the world’s second-largest consumer market by 2015, behind the US, with enough purchasing power to buy 14 per cent of the world’s products, up from 5 per cent now, according to research by the American Chamber of Commerce in Shanghai (AmCham Shanghai) and Booz & Co, a management consulting firm.
In booming India the arrival of big retailers has had an impact on small stores, but neighbourhood stores are still growing their sales. Sales at modern stores grew 34 per cent in 2006 and 29.3 per cent in 2010, but traditional stores could increase sales only 1.5 per cent in 2006, and improved the rate to 6.2 per cent last year.