How have we come so far in 10 years? In the 10 years since A.T. Kearney launched their Global Retail Development Index (GRDI) research, they learned that five countries consistently been on the top 10 and four big companies get more than half of their sales from international market.
Via A.T. Kearney.
Five countries. China, India, Russia, Vietnam and Chile have consistently been in the top 10 since the first GRDI(see figure). Population size, a growing middle class, increased wealth and consumer spending appeal are important factors. Favorable foreign investment regulations and openness to wholly owned foreign trade are also attractive to global retailers.
Four retailers. Four companies in particular owe a significant part of their success to global expansion: Carrefour, Metro, Tesco and Wal-Mart. France’s Carrefour and Germany’s Metro draw roughly 60 percent of their sales internationally; the United Kingdom’s Tesco and Wal-Mart in the United States have also expanded rapidly, with annual international sales growth of 27 percent and 18 percent, respectively.
The four kings of global sales
Carrefour: 57% of sales come from international market.
Metro Group: 61% of sales generated internationally.
Tesco: for the second largest retailer in the world, sales from international market have grown 27% annually.
Walmart: the king of retailer goes where the populations are in Latin American and Asia.
(graphs: A.T. Kearney)
What population got to do with it?
I know it’s hard to talk about population to fellow Americans, unless they’ve been overseas and see it with their own eyes. Because unlike other countries on the other side of the world, the U.S. is a relatively big country that sits on a continent. And there are states in the U.S. that are sparsely populated, for example Montana. Montana is one of the top 10 largest states in terms of size, but they have more population of cows than people.
Let’s face it. Population is one of the drivers that’s going to transformed how we do business. It’s one of the reasons, how this external pressure would drive innovation.