10 markets that didn't matter 10 years ago but do now
Our top priorities in 1998 were nothing like our key obsessions now, as emerging markets, more affluent consumers and new segments have all made their presence felt.
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China's second-tier citiesChina's second-tier cities
Fierce competition and retail overcrowding in the key Chinese cities - Beijing, Shanghai and Guangzhou - have prompted retailers to look at second-tier markets such as Chongqing, Chengdu and Hangzhou as their launch pads into the country. There they have found cheaper rents and a healthy number of affluent and aspirational consumers who are looking to spend money closer to home.
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Brazil's middle classBrazil
Brazil is finally living up to its billing as a one-to-watch BRIC market. In the past two years more than 23 million Brazilians have moved up the socio-economic ladder and now make up a group of consumers keen to experiment and buy products and services that were previously inaccessible to them. This year, AT Kearney dubbed it "the world's most attractive emerging market for apparel retailers."
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Russian retail: room for growthMoscow
Moscow has come to the fore as a luxury fashion city to be reckoned with. Its world-renowned department stores play host to established and aspirational brands, and mid-market brands have also found a place to sell at premium prices. Add to that the increasingly sophisticated fashion tastes of affluent Muscovites and its position as a fashion city is secured.
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Indian consumer trendsIndia
The advent of organised retailing in India has had a huge impact on the market, with local retailers enhancing their offers to compete with incoming businesses and the shift of consumer purchasing habits. Apparel makes up the largest share of modern organised retailing in India, with estimates suggesting it represents between a fifth and a third of the total retail market. Growth is driven by the burgeoning Indian middle class, the increasing development of apparel-focused shopping malls and the continued penetration of credit cards.
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China's Little Emperors
China's Little Emperors are a result of the country's "One Child Policy", instigated in the late 1970s. Also known as the "Me generation", these urban Chinese individuals have enjoyed lavish parental attention and dedicated family resources. They have also become demanding consumers with free time and disposable incomes, who wield significant purchasing power. In 2007, for example, 20-29 year olds became the highest-earning age group in China.
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Spanish fashion retail structuresSpain
Though not a fashion retail market of note ten years ago, Spain has become an important market. It's an attractive destination for international brands and has its very own power players, including Zara and Mango, which offer on-trend fashion at highly competitive prices. With so much invested in the country, its retail climate is one to watch.
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Dubai
In the past decade Dubai's development of air-conditioned malls has secured its position as the launch pad for brands entering the Middle East. Home to labels and chains from around the globe, tourism is booming and retail spending in Dubai should exceed $7bn by 2009.
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New EU
The 12 new countries to join the European Union in the past decade have offered apparel companies natural growth markets and enthusiastic consumers. Western Europe's value-led brands, in particular, have found new and receptive markets for their products while local players are developing impressive regional footprints.
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Marketing to baby boomersBoomers
For fashion brands and retailers traditionally focused on clothing younger customers, the healthy and wealthy age-redefining post-war baby boomer generation has forced them to think again. Capturing the loyalty of leading-edge boomers has become a priority for many.
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Eco
Rising consumer awareness over food safety, quality, animal welfare and environmental issues led to a boom in the organic food market. Where the food industry led, fashion is soon to follow and interpret in its own way. There is a growing market for truly organic clothing, but also for apparel which simply promotes sustainability and eco-friendliness. Early estimates put global retail sales of "sustainable apparel" at $3bn in 2007.
