The globe can be daunting to retailers, but the use of calculated demographic data can educates retailers toward the country who shows greatest promise for retail growth. Retail is fast paced every changing environment and retailers look beyond their current customer base setting their sights abroad to expand into the uncharted fast growing markets of other countries. Global market penetration can seem risky business to retailer who are currently profitably, showing strong growth within their current consumer base, yet retailers understands the need to reach further into the global market and diversify. The changing retail landscape brought forth by technological channels, economic down turns and flat retail sales sends retailer digging deeper into each countries demographic data. Understanding how to put the pieces of data together can broaden a retailers vision whether to open their doors or look elsewhere where conditions are more favorable.
Growth rate of various countries can be key indicators of where the next viable retail market might be developed. Population numbers can be the starting point for retailers, but numbers alone will not tell the whole story of a particular countries retail viability. Detailed research of a countries population, growth rate, age, economic stability and other pertinent information will give retailers an overall picture portfolio of whether a country is a profitable choice to expand into. Berman & Evans created table based on a global perspective of 10 selected countries from a population and demographic perspective (2011, pg. 175). This table is used for the purpose of why a retailer might choose a given country to expand into. From the data based on population growth rate alone, China, Mexico, and India showed large positive growth rates that might attract retail corporations as where Japan, Poland and South Africa show negative growth rates. Japan’s negative growth rate might discourage potential retailers, but the metropolitan city like Tokyo has 36.507 million people and Japan has the second lowest unemployment rate of all the countries listed, making Tokyo, Japan an attractive retail market (C.I.A., 2013). Retailer can use population data as the basis for overall potential marketing development, but a well thought out strategy plan must incorporate and consider more than population alone to developed and reach the right target market matched to product or service a retailer is offering.
How retailers reach their global target market, is through multiple layers of data, matched to the retailer profiled target market. Many factors are considered in the selection to market a product abroad. The countries literacy rate, urbanization, age, employment, growth, population and risk all play a role in a retailers decision to invest globally. Retailer have to follow the global market to recognize economic trends, political unrest, which countries will become...