The spread of modern grocery retail (supermarkets, hypermarkets, convenient and discount stores) continues to gather pace within the emerging Asian Pacific economies, most noticeably in the key emerging markets of South East Asia. According to Business Monitor International's (BMI) Asia-Pacific Food Retailing: Opportunities and Implications, rapid urbanisation and an ongoing liberalisation of retail foreign direct investment (FDI) regulations will continue encouraging growth in modern retail sales.
the relative attractiveness of the modern grocery retail markets, BMI identified three distinct groups in the region. The first group included Japan, Australia, South Korea, Hong Kong, Singapore and Taiwan, where developed modern grocery retail markets have been fast approaching saturation point. The second group consisted of China, Thailand and Malaysia, with rapid urbanisation and continued FDI translating into fantastic long-term opportunities for modern grocery retail sales.
The third group, promising the most exciting long-term growth opportunities, lied with the underdeveloped retail markets of Indonesia, Philippines, Vietnam, India, Cambodia and Pakistan.
According to BMI, the rapid spread in modern retail has been most pronounced and evident in the traditional retail sector, which faced increasing pressure on their market share and bottom line. As modern retailers rapidly build scale and grow, consumers will gain the most benefit from lower product prices, wider product variety, higher product quality and improved accessibility.
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