The new Emerging Markets are here to stay and will totally change the Retail map of the world.

Implications: US and European Retailers who wish to grow over the coming years MUST step up their International Expansion plans. There is a real need for "Isolationist" Retailers to wake up to these major opportunities before it is too late and a "New World Order" has taken shape without them! 

Analysis:  

This month’s World Retail Congress in Barcelona was a fairly unremarkable affair except for one major and compelling theme.
The emergence of the BRIC emerging nations along with The Middle East and the CIS states must be embraced by all US and European Retailers.

At the best of times the developed and overcrowded markets in the US and Western Europe offer scant reward for established retailers with over priced real estate and the irreversible growth of the Web adding to the tauper of an increasingly distracted consumer. 

Now that we are in "the worst of times" with stagnation or reducing GDP in our home markets it is now a real and present imperative that Retailers pick up their suitcases and passports and get out there to the holy grail territories that are enjoying GDP growth in double digits fuelled by ravenously brand hungry retail consumers.

European heavyweights such as Inditex, H+M, Tesco and Carrefour have already successfully entered these markets and can happily report majoritive revenues and profits emanating from these emerging markets. Mothercare in the UK have proved that almost all profits can come from overseas operations and the brand is all the stronger for it!

Why then, is there such a reluctance shown by US retail brands to successfully go abroad?
Micky Drexler unfortunately added to this entrenchment when commenting on the exportability of the J Crew brand at the WRC in Barcelona. Whilst he is right in extolling the virtue of getting everything right at home first, I can’t help thinking that he is still smarting from the errors made during Gap's early international expansion years.

Wake up US retailers...there is a new world order out there and the tide is not for turning again!

The meteoric growth of major Franchise operators such as Alshaya, Landmark and Al Hokair in the Middle East is proof positive of the huge rewards available to Retailers who break down the borders and take their brands into the new global market place.
All it takes is the realisation that "International" is now, along with "e-commerce" the most important function on a Retailers Board and the readiness for the Retailer to fully understand the differences that each market place has in terms of consumer mindset and acceptance of their brand.

This can either be done directly as successfully proven by Inditex and H+M or through excellent Franchise partnerships as proven by UK retailers such as Debenhams and Marks and Spencer.

US Retailers can do it...just watch the growth of Claire's Accessories International Division over the next two years. Under the tutelage of Bruce Marshal, International Director, and fully supported by CEO Gene Khan. Claire's are a rare and inspiring example of a US Retail Brand unafraid to expand their international business at a dynamic pace. Not only in spite of, but because of the stymied opportunities for growth in the established markets.

A major summit due to take place in New York at the end of June will pull together successful European Retailers who have travelled successfully along with major Franchise Operators who will tell their stories of success to US Retailers who have opened the doors of the Canary's cage but have not yet taken flight.

Could be the best reason for the cost of an Executive internal flight to NYC for a very long time!