These would seem like the best of times for the grocery business in emerging Asia.
Home to about 44% of the world’s population, Asia’s emerging markets boast macro trends that would delight any retailer: healthy GDP growth, a rapidly rising middle class and populations that are steadily moving into cities, where the economics of distribution favour modern trade. By Bain & Company analysis, 30% of the world’s retail growth through 2017 will come from Asia’s emerging markets.
But if the growth is strong and prospects are bright, why do some companies pull ahead while others follow distantly or fail? India’s Big Bazaar grew to $2.1 billion and earned 6% margins in 2012. China’s RT-Mart nearly tripled its revenues from 2007 to 2011, and Indonesia’s Hero Supermarket watched its revenue growth significantly outpace the total market during those years. However, in the same retailing environment, some of their multinational competitors lost share.
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