|
By Darwin G. Amojelar, Reporter
THE Philippines’ ranking in the world’s top
destinations for global retailers dropped three notches owing to US
economic slowdown and rising inflation in Asia.
In its 2008 Global Retail Development Index, A.T.
Kearney said the Philippines fell to 26th spot with an index score
of 41 percent out of the top 30 destinations.
The country climbed to 23rd spot last year,
buoyed by fiscal gains and declining inflation.
The annual report ranks 30 emerging countries on
a 100-point scale. The higher the ranking, the more urgent it is for
retailers to enter a country to cash in on its consumers’
disposable income and shopping-spree impulses.
The survey is based on four variables: country
risk, market attractiveness, market saturation and time pressure,
which is measured from zero to 100 with 100 as the highest score.
The Philippines scored lower in country risk
with 14 percent; time pressure, 24 percent; and market
attractiveness, 46 percent. However, it scored higher in the market
saturation category at 76 percent.
“The credit crunch that began in the United
States and quickly spread globally has slowed retail growth and
added to the financial stress of retailers worldwide,” AT Kearney
said.
It added that US-based retailers in particular
are grappling with lower same-store sales in their home markets,
while the weak US dollar is fueling inflation in Asia, consternation
in Europe and Japan and serious worries in general.
“The credit crunch and higher cost of capital
will make large-scale expansion on multiple fronts more difficult to
sustain,” AT Kearney said.
Vietnam topped the index followed by India,
Russia, China, Egypt and Morocco.
“Vietnam with the perfect mix of opportunity
and timing, tops the list as the most attractive opportunity for
2008,” AT Kearney said.
The international consulting firm added that the
regional progress of organized retail in the Philippines, Thailand
and Malaysia has helped introduce Vietnamese consumers to modern
retail.
Additionally, the opening up of the Vietnamese
economy has encouraged global retailers to capitalize on the
opportunity, AT Kearney said.
Other Asian countries that figured in the poll
were Malaysia at 13th place; Indonesia, 15th; and Thailand, 24th.
South Korea and Taiwan dropped out of this year’s list.
Hana Ben-Shabat, a partner with A.T. Kearney and
co-leader of the study, said despite slowing economies in developed
countries, the retail opportunity in emerging economies is more
compelling than ever as less than 10 percent of the retail market in
these countries is organized.
“These markets will provide the engines for
continued growth and profits for global retailers as sales in their
home countries turn sluggish,” the survey revealed.
|
