ATKEARNEYGlobal Retail Development Index 2012

Team Name: Salesmen Of the YearGajendra SisodiaShouvik DasTejas DeshpandeYagnesh DesaiChiranjeev DharMohit SangwanViral Patel

What is it about:

• The Global Retail Development Index™ is an annual study that ranks the top 30 developing countries for retail expansion worldwide.

• The Index analyses 25 macroeconomic and retail-specific variables to help retailers devise successful global strategies and to identify emerging market investment opportunities.

• The GRDI is unique because it identifies today's most successful markets and those that offer the most potential for the future.

Some Important Facts In The 2012 Results:

• The developing markets of the BRIC countries still offer a huge growth potential for retail investments but some smaller markets are coming up especially, in the luxury segments.

• Brazil is the top country in the GRDI for the second straight year, leading the way for Latin America, which has 7 countries among the top 30. Chile is second once again, and Uruguay is fourth.

• China climbs to third place in the GRDI, as double-digit sales growth is expected. However, rents and labor costs are rising, so the market still has many challenges.

• Some of the smaller countries with attractive retail markets include Georgia, Oman, and Mongolia, all of which were unranked in the 2011 GRDI but are in the top 10 this year.

• With retail talent a critical differentiator in developing markets, finding and retaining talented workers is a core component to success. The Retail Talent Index, reintroduced this year, is led by Malaysia, whose low-cost labor and favorable regulations, and a well-educated population support the operations of international retailers that enter and expand in the market.

Rankings

2012 Retail Talent Index

Retail Talent Index: Its calculated based on country’s performance in three areas: talent availability; labor regulations and cost of labor.• Talent Availability (40 Percent): Scores based on educational system and

management schools, labor force participation and “brain drain”.• Labor regulations(20 Percent): Scores based on hiring and firing practices and

flexibility of wage determinators• Cost of labor(40 Percent): Scores based on retail salaries of an average sales

associate.

Country Risk: 35 or higher score in EuroMoney country Risk analysis

Population: 2 Million or more

Wealth: GDP per capita of more than $ 3000

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The Annual AT Kearney Global RDI ranks 30 developing countries on a 0-to-100 point scale. Higher the ranking more urgency is there to enter that country.

Higher the rating, lower the risk of failure/doing business

Business RiskCountry Risk

80%

•Political risk•Economic

Performance•Credit Ratiings•Access to bank

financing

20%

•Business Cost of•Terrorism•Crime•Violence•Corruption

Population Urban Population

Business Efficiency

Retail sales per capita

40 percent

• Based on total annual sales of retail enterprise

• Score of 100 indicates mature retail market

20 Percent 20 Percent 20 prcent

• Score of zero indicates that the country is relatively small with limited growth opportunities

• 100 indicates a mostly urban country

• Parameters include -Govt Effectiveness -Ease of doing

business -Infrastructure

Quality

Market Attractiveness( 25 Percent)

Market Saturation(25 percent)

Number of Int retailers

Market share of leading retailers

Time pressureShare of modern retail

Modern retail sales area per urban inhabit

30 percent 30 percent 20 percent 20 percent 25 percent

• A score od zero indicates that a large share of retail sales is from the modern format

• Countries with the maximum amount of retailers have the lower scores

• A score of zero indicates that the country ranks high in total modern retail area per urban inhabitant

• A score of zero indicates a highly concentrated market with the top 5 competitors holding more than 55% retail market

• A score of zero indicates a rapidly advancing retail sector representing short term opportunity

Thank You!!