IndiaRetailBiz

After having been pushed down to second rank on A T Kearney’s Global Retail Development Index (GRDI) in 2008, India has bounced back to rank number 1, on the Index (GRDI) for 2009.

GRDI is an annual study of 30 emerging markets that ranks attractiveness of these markets for retail investment. The annual ranking reflects on the urgency (potential) for retailers to enter a particular country. The study is has been prepared and published by A T Kearny, a global consultancy firm of repute, since 2001.

While, Russia and China (ranked 2nd and 3rd on the Index) have also improved their position by one rank each, Vietnam– the top ranked market in 2008– has sunk to the 6th position, this year. UAE and Saudi Arabia are ranked 4th and 5th on the GRDI 2009.

The scores on the GRDI are based on 25 variable parameters across four primary categories: economic and political risk; market attractiveness; market saturation; and time pressure (difference or addition between gross domestic product and modern retail area growth).According to GRDI 2009 report, ”India’s largely unmodernised retail sector remained attractive to both domestic and international retailers, in spite of government regulations that prevent 100 per cent foreign ownership of retail stores. Overall … the country risk is low and the market potential is still very high, making it the most attractive option for growth.”

Emerging markets continue to represent attractive investment opportunities for global retailers and the economic downturn has made entry to many of these markets more critical and relevant, according to global management consulting firm A.T. Kearney’s eighth annual Global Retail Development Index (GRDI), a study of retail investment attractiveness among 30 emerging markets.

“With economic conditions in developed markets improving so slowly, emerging markets are becoming much more important sources of growth for global retailers,” says Hana Ben-Shabat, co-leader of the study. She is also a partner in the consultancy firm. “Leading global retailers must develop a portfolio strategy that balances big and developed markets with small and developing markets to manage risks across the globe,” adds Hana Ben-Shabat.