Retailers are reducing risk by testing their brands with the online channel before building stores in emerging markets A.T. Kearney's Global Consumer Institute have recently released the 2012 Retail e-Commerce Index, "Online Retail: The New Frontier for International Expansion." This index examines the top 30 countries in the 2012 A.T. Kearney Global Retail Development Index and ranks the top 10 based on the retail e-commerce potential. The 2012 Retail e-Commerce Index reveals that large emerging markets with an active online user base and solid infrastructure offer retailers the greatest e-commerce potential in the near-term.
The Retail e-Commerce Index analyzes 18 infrastructure, regulatory and retail-specific variables to help retailers devise successful global e-commerce strategies and identify emerging market investment opportunities. The higher the ranking, the more potential a country has in the e-commerce sector.
Hana Ben-Shabat, A.T. Kearney partner and study co-leader commented, "Online retail in developing markets presents retailers with attractive growth prospects either by adding e-commerce to already existing store networks or as a market-entry vehicle. Entry via the online channel allows retailers to build their brands and learn about consumers without having to invest in store openings."
Retail e-Commerce Index Results
China's vast online retail market drives the country to the top ranking on the Retail e-Commerce Index. China's current online retail market size of US$ 23 billion is second only to the United States and is predicted to explode over the next five years growing at 29 percent a year as Chinese infrastructure and online purchasing behaviors evolve. While multiple categories are popular among Chinese online shoppers, consumer electronics and apparel are the largest two...