China Rise in Top 10 Most International Retail Market CBRE Global Retail Report Highlights Shifting Hierarchy in International Retail Market

China's growing ability to attract global retailers to its shores is fuelling its rise as the world's ninth most international retail market, according to a new study by CB Richard Ellis.

Hong Kong (PRWEB) March 25, 2008 -- China's growing ability to attract global retailers to its shores is fuelling its rise as the world's ninth most international retail market, according to a new study by CB Richard Ellis. The nation outpaced traditional major territories such as the United States, Japan and Singapore in relation to international retailer presence and became the only non-EMEA country within the top10 list.

Globalisation is affecting all aspects of social and economic activities, and retailing is no exception. Emerging markets are becoming more important for many retailers to venture beyond their traditional territories, with China and Russia particularly attractive at ninth and tenth places, respectively.

The report, entitled How Global is the Business of Retail by CB Richard Ellis, maps the global footprint of 250 of the world's top retailers, exploring the globalisation of the retail industry and scrutinising retailer presence in relation to market sectors, country of origin, regional trends and other influences.

The study ranks the UK as the current global leader in relation to international retailer presence, with 55% of retailers surveyed present. Spain's position as the second-ranked market, closely trailing the UK, is an unexpected result which gives perspective to the market's new global significance, with 51% of retailers present. Spain is a relatively new destination for international retailers, the very strong recent performance of the Spanish economy having boosted retail sales and created strong demand for retail space. This strong platform for growth, along with positive market sentiment from both retailers and investors regarding the Spanish market, continues to suggest that a challenge to the UK's number one position is not unlikely.

France and Germany also performed strongly in the global ranking, achieving third and fourth positions respectively, and emerging markets including the United Arab Emirates, China and Russia all figured in the top 10. China is the only nation from the Asia Pacific with 40% of international retailers present among the top 10 list. The penetration of international retailers in these emerging markets is similar to that of much more mature economies, explained by a number of domestic political, economic and retail market idiosyncrasies.

Beyond China, only Singapore and Japan from the Asia Pacific region make the top 20, with 38% and 35% respectively of international retailers present. Despite being the largest retail market in the world, the United States surprisingly registered outside the top 10, at number 11, with 39% of international retailers present in that market. CB Richard Ellis attributes this to the maturity, size and strength of its domestic retailers, which make it a market that only the strongest foreign retailers are able to break into.

The report also analysed which types or categories of retailers have the strongest international penetration, and found that luxury goods dominated international retail expansion, with almost 90% having a presence in more than 10 markets. This was markedly more than grocery, food and drink retailers, with just 60% present in 10 or more markets, and the clothing, footwear and accessories retailers of which 54% were in more than 10 markets. However, as the report illustrates, many of the luxury retailers are particularly well-known for their clothing ranges, such as Hugo Boss or Versace, reflecting the historical tendency for high fashion brands to be offered internationally. Least likely to 'travel' were the department stores, with only 5% represented in 10 or more markets.

Speaking about the report, Bryn Davies, Executive Director of CB Richard Ellis Greater China, said: "This is the first time that the globalisation of retail has been examined in this way, capturing real data about the expansion of international retailing. It gives retailers unique insight into international opportunities, trends and challenges, and raises questions about why markets behave in particular ways and attract particular retailers."

"One of the most exciting things to watch in the global retail landscape is the growth and influence of the BRIC emerging markets (Brazil, Russia, India and China). China is already strong global performer and represented in the top 10 most international markets in our study. Within the primary cities, such as Beijing, Shanghai and Guangzhou in China, there is a significant concentration of wealth and it is around these cities that much of the international retail activity is well centred", Mr. Davies underscored.

To find out about where retailers are heading next, look out for CB Richard Ellis' new Global Emerging Markets Survey (GEMS) report, which will be exclusively launched at the World Retail Congress in Barcelona in April. GEMS will offer unique insights into leading retailer attitudes towards the world's emerging retail destinations.

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