Consumer & Retail

Thailand - New investment in retail sector forecasted to drop in 2010 

Source: Thai News Service, 25 August 2009

New investment in the retail sector in 2010 is forecasted to drop by 10-20% from 2009 as a result of tighter regulations such as the soon to be approved new retail law.

The new law will require retailers to obtain approval from different agencies. Retail projects in provinces will also need to obtain construction permits from the Interior Ministry. New retailers might also face difficulties finding new locations due to increased investment on development this year. Some retailers had expanded this year due to new market opportunities despite the crisis and to take advantage of lower construction costs due to lower material prices.

India - More FDI required for continued growth of India’s retail industry  

Source: The Economic Times, 31 August 2009

India’s retail industry is currently forms about 10% of its GDP and has more than 21 million employees. However, the tight FDI regulations in India make it difficult for foreign investors to venture into the market, resulting in calls to relax the FDI requirements.

Currently, FDI is only allowed for single-banded stores and not for multi-brand retail. This restricts the investment options for global retailers interested in the Indian retail market. The retail market in India is also challenging as global trends are not an exact fit for it due to its unique local requirements.

China - Retailers and suppliers reach agreement on fair promotion  

Source: China Retail News, 04 September 2009

70 retail companies and 200 suppliers have reached an agreement on fair promotion. They have signed the "Proposal for Fair Cooperation and Promotion of Retailers and Suppliers" which aims to regulate promotions and improve relations between both parties.

Under the terms of the proposal, retailers would introduce promotions based on promotional agreements and would not sell products lower than the purchase prices or agreed prices during the promotions. Suppliers in turn would not sell their products at prices lower than supply prices or agreed prices. Both parties would also estimate the volume of products under promotion and any losses caused by sales in excess of the estimated volume would not be passed to suppliers.

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