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Dubai: The UAE has been ranked eighth among the Top 15 Most International Retail Markets, with 41 per cent of international retailers present in the emirate, according to a report by CB Richard Ellis (CBRE).
The study, which mapped the global footprint of 250 of the world's top retailers, revealed that the UAE is now ranked among the top international retail destinations ahead of countries such as China, Singapore, Russia, US and the Netherlands.
"Retailing in the UAE has changed beyond recognition in recent years with the emergence of some of the most high-profile retail developments anywhere in the world," the report observed.
Another study by CBRE has found that retailers are looking to the world's emerging markets to drive the success of their businesses. The report reveals that 40 per cent of retailers expect emerging markets to provide their main source of growth over the next five years, while only a quarter expect to see growth concentrated in their home markets.
Global portfolio
The Global Emerging Markets Survey (GEMS) explores the views of some 300 retailers worldwide, representing a global portfolio of 25,000 stores, and provides the latest insight into retailer attitudes towards the world's emerging retail destinations.
The GEMS survey identifies India as the most sought-after emerging market. Twenty seven per cent of international retailers surveyed have opened their first store in India in the last year or are planning to do so imminently.
The country is considered particularly attractive because of the size of its market compared to its low presence of international retailers. With foreign ownership rules being gradually relaxed, foreign investment is also now possible, allowing single-brand retailers to own up to 49 per cent of their India operations.
Ukraine and Russia also ranked highly in the survey, in second and third positions respectively. Ukraine, in particular, benefits not only from its own rapid economic growth but also from its proximity to Russia. GEMS reinforces the trend for retailers, who have established a presence in a 'primary' emerging destination such as Russia, to regard smaller neighbouring countries as natural geographic extensions to their current store network.
While Moscow has recently enjoyed heightened attention from retailers due to booming consumer spending, the focus is now shifting to secondary Russian cities and to Ukraine. Another example of this primary/secondary behaviour is retailers who first entered Singapore now moving into Malaysia, which ranks fourth in the list of most sought-after emerging markets.
Peter Gold, head of cross border retail, EMEA, CB Richard Ellis, said, "Rising interest and growing expansion into emerging markets globally is being fuelled by rapid growth in consumer spending and the emerging middle class.
"We believe India will maintain its position as a popular new location for retail expansion as further trade restrictions are lifted. Like Ukraine is benefitting from Russia, retailers will look to expand to adjacent markets around other emerging destinations."
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