Ian Watt, director: international development of Old Mutual Properties, was chairman of the Retail Real Estate World Summit (organised by the International Council of Shopping Centres) in Istanbul earlier this year and believes that some of the more familiar brands emanating from traditional western markets will be challenged.
"Retail categories in many economies have been a one-way street. Big western brands in merchandise categories from clothing to cosmetics and from luxury goods to fast foods have established a global reach. Even major general retailers are looking to replicate success in home and neighbouring markets by expanding into the Middle East, Asia and the Indian sub-continent.
"Now what's on the cards can be likened to a two-way street. New emerging brands, mainly from Asia and Africa, will challenge established brands for market share."
Watt says South Africa, with its buoyant retail economy and skilled retailers, is part of the changing landscape, both as a market for these new brands and as a driver into Asian and African economies.
He says the drivers of this thrust by new brands are varied: "They include the economic power and business skills of Asian nations and the craftsmanship of Africa and a desire among entrepreneurs to bring their brands to new markets. Those brands have been established in markets where younger people, receptive to new ideas and trends and with a discerning taste for value, are in the majority.
"Their volumes are substantial. Consider the economic power of the top 10% of the people of India and China who amount to more than the total populations of most European countries. Equally, western markets are looking to embrace what's out of the ordinary and to enjoy new experiences."
Contenders in this brand challenge include clothing labels from the Philippines and India, says Watt.
"These brands can match the best in their categories and probably even have broader appeal at better value. At store level, there are operations in India which can quite easily match the appeal of leaders like Macy's of New York."
