The latest report published by PricewaterhouseCoopers in Shenzhen shows that most Asian regions still provide growth opportunities for retail and consumer goods companies, although the growth rate will slow down slightly in the short term.
Carrie Yee, global head of retail and consumer goods at PricewaterhouseCoopers, said: “Long before the global economic contraction, multinational companies had changed their strategies and shifted their targets to emerging markets with booming growth opportunities. The prospects for mature markets are still growing. The next two years are still unclear, so many retail and consumer goods companies will restructure their strategies and use emerging markets as the driving force for future business growth. Overall, emerging markets in Asia, driven by the strong momentum of China and India, will be The areas with the fastest growth between 2010 and 2013 were particularly groceries and clothing.”
The report predicts that sales in China and India will grow at a double-digit rate. In China, high-end clothing sales are dominated by international brands from France, Germany, Italy, Japan, the United States, the United Kingdom, and South Korea. Since manufacturing costs in Central and Eastern Europe and Russia are still among the lowest in the region, European retail companies have entered these two regions in a large scale. However, except for the better sales situation in discount stores, clothing consumption has shrunk significantly. Growth in Latin America was also very limited in 2009.
The report pointed out that luxury brands have achieved remarkable results among high-income consumer groups in emerging markets, driven by extensive marketing and the launch of unique accessories. But consumers are reducing spending, and global luxury goods sales are expected to drop by 10-15% in 2009. Falling oil prices and a real estate recession have reduced the number of billionaires in Moscow by 60% and severely hit luxury goods sales. However, Asia’s prospects are the most promising. There were an estimated 15,300 households with net worth of more than $1 million in 2008. By 2015, China is expected to become the world’s largest buyer of luxury goods.
Jiali Ye said: “In a certain respect, this economic recession is the same as in the past. Consumers are not optimistic about the future and tend to buy discounted products. If companies can maintain product quality while lowering prices, This will increase market share and make it easier to achieve good results when the economy recovers.”
