While the volcanic ash cloud and the ensuing chaos may have blown over by the time this appears, the disruption to international trade once again highlights the weaknesses in our increasingly globalised economy.

As supermarkets begin to experience availability problems in areas such as green beans, fresh chillies and exotic flowers, few UK consumers are likely to be overly troubled. Conversely, we are unlikely to see panic buying of Marmite, Irn-Bru and Tunnock’s Teacakes in supermarkets from Beijing to Rio. However, if the disruption persists, problems for business will grow and consumers will begin to feel the effects.

So, perhaps an odd time to be raising the issue of retail internationalisation, but an increasing number of retailers from the US, Europe and Japan are announcing plans to ramp up their dependence on international markets to drive long-term growth amid persistent sluggish demand at home.

Part of Andy Bond’s new remit as chairman of Asda is reportedly to advise Walmart in its drive into new markets, with an initial focus on Russia. Handily, Planet Retail and Deloitte just released a joint report into which markets retailers might want to take a stronger interest in when considering longer-term internationalisation.

Although China has undoubtedly emerged from the global economic downturn as one of the strongest emerging retail markets, the report, entitled Hidden Heroes, argues that retailers should be casting their nets a little wider. Along with the usual suspects of Brazil, India, Mexico, Russia and Turkey, the report lists Vietnam, Indonesia and Egypt as offering strong potential for the brave.

The paper goes on to pick out some of the success stories among emerging market operators, and attempts to find patterns in what makes a winning strategy for trading in challenging environments. The authors heap praise on local players Pantaloon in India, Bim in Turkey, Magnit in Russia and Saigon Co-op in Vietnam, as well as players with international backing such as Walmart de México, Grupo Pão de Açúcar (Casino) in Brazil and Carrefour in Indonesia.

Common to almost all of the lauded players has been their pioneering attempts to serve the local underserved population with accessible formats, affordable prices and market-leading private labels ranges. Should be top of Mr Bond’s reading list.

Matthew Stych, research manager, Planet Retail. For more information contact us on:

Tel: +44 (0)20 7728 5600

Email: info@planetretail.net

Topics