Sri Lanka tipped to become a hot spot for retail industry
Sri Lanka remains favourable for retail trading being placed at 12 according to the Global Index report with even some developed countries like the Philippines below.
John Glover
Developed markets are looking at developing markets such as the Sri Lanka market.
Sri Lanka’s total retail trade was US$31 billion in 2015 but came down in 2016 to $30 billion according to the A.T. Kearney Global Index.
These comments were made by Sidath Kodikara, chairman of the Organising Committee of the SrI Lanka Retail Forum 2017, addressing a media briefing at the Ceylon Chamber of Commerce Colombo 2, recently.
He said e-commerce industry which accounted for 5.9 per cent of total global trade in 2014 is tipped to grow to 8.8 per cent in 2019 and described as a digital disruption to the traditional trade world.
“If you look at the e-commerce companies in the world they are much bigger than the biggest retailer in the world – Walmart. Ali Baba, e-commerce company of China overtook Walmart to be the biggest retail company in US sales.”
He said Amazon too has grown over the years and a new trend was emerging challenging traditional businesses. The global sector is now rising with disposable incomes, with improved consumer confidence as happening even in Sri Lanka. But the negative factor was the GDPs of under developed economies with higher youth unemployment problem. However liberal trade policies and removal of trade barriers and linkage to WTO could stimulate the global retail industry. “The interesting factor was that the population of developing countries has grown by 21 per cent during the past 15 years to $6.2 billion while retail markets of those countries have increased by 350 per cent currently representing more than half of the global retail trade,” he added.
Meanwhile retail trade worldwide is expected to grow to a staggering $28. 3 trillion in 2019 at 6.9 per cent globally, dominated mainly by the US and China. The retail industry represents 31 per cent of the global GDP employing millions of people from all over the world. In addition to China and the US retail trade in Indonesia, has also increased by 16 per cent while China and Vietnam have recorded 14 per cent growth. Retail trade in other developing countries has also grown by 1-12 per cent, according to the A.T. Kearney report.
Meanwhile the Sri Lanka Retailers Association is making plans to hold the “Sri Lanka Retail Forum 2017” at the Cinnamon Grand Hotel in Colombo on September 13.
This first-of-its-kind trade show to be held in Sri Lanka will focus on emerging trends and innovations in the local and the global retail sector and discuss burning industry issues and solutions and share practices adopted by the practitioners of the sector. The one day session will be addressed by both local and global industry experts, sharing insights, experiences, suggestions and observations of the retail industry. Murali Prakash, Executive Committee member of the association and other members were present at the media briefing.
Sharang Pant
Ms. Ruvini Fernando
Murali Prakash
| Speakers | |
| The retail forum will feature four industry practitioners – John Glover, Founder and CEO of Global Retail Consulting Services’ Sharang Pant, Country Director, A.C. Nielsen; and Murali Prakash, Group Managing Director, CEO of Taprobane Holdings PLC and Lanka Century Investments PLC. Mr. Glover, former Head of Woolworths Australia, will make a presentation containing in-depth insights into the changing global landscape. Providing data-driven analysis on growth opportunities in Sri Lanka’s consumer sector will be Ms. Ruvini Fernando, CEO of Guardian Asset Management. |