Revenue of many big retailers from across the globe is growing despite the world economy still being plagued by the pandemic. According to Deloitte's Global Powers of Retailing 2022 report, the top 250 global retailers generated aggregated revenue of US$5.11 trillion in the fiscal year 2020, and 14 of these brands came from China and Hong Kong, while six Southeast Asian retailers made the list too.
The share (15.9%) of the global top 250 revenue from retailers based in the Asia Pacific region fell by 0.3 percentage points from the previous year. The Asia Pacific composited year-over-year growth in FY2020 retail revenue of 2.6%, which was 5.5 percentage points lower than the growth in FY2019. There were big differences in performance between retailers from the different countries. As a group, the 14 Chinese or Hong Kong retailers had a higher FY2020 year-over-year growth (13.1%, up 1.4 percentage points) than retailers in any other major top 250 countries.
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For the group of Chinese and Hong Kong retailers, 43% achieved double-digit retail revenue growth ranging from 17% to 94% in FY2020. These were mostly online specialists and those with strong eCommerce capabilities. JD.com was the top Chinese retailer on the list and was ranked ninth. Other notable Chinese companies included Suning.com (31st), Alibaba Group (42nd), Vipshop Holdings (67th), and Yonghui Superstores (84th).
There were three Hong Kong retailers on the list. A.S. Watson Group was the city's top performer (53th), followed by DFI Retail Group (107th) and Chow Tai Fook Jewellery Group (123rd).
Moreover, there were two retailers based in Thailand (CP ALL, 60th; and Central Retail Corporation Public Company, 198th) and Indonesia (PT Indomarco Prismatama, 186th; PT Sumber Alfaria Trijaya Tbk, 209th) respectively. SM Investments Corporation from the Philippines (178th) and Mobile World Investment Corporation from Vietnam (222th) were also included in the list.
Ira Kalish, Deloitte Global’s chief economist, said:
While we entered 2022 with some very serious headwinds – inflation, labour shortages, supply chain disruption, a resurging virus – retailers now have reason to be optimistic. Major economies will most likely grow this year, consumers are expected to have more cash, and trade and cross-border investment will continue apace.
Here's the list of companies:
1. JD.com (9th)
2. Suning.com (31st)
3. Alibaba Group Holding Limited (42nd)
4. A.S. Watson Group (53rd)
5. Vipshop Holdings (67th)
6. Yonghui Superstores (84th)
7. DFI Retail Group (107th)
8. China Resources Vanguard (108th)
9. Chow Tai Fook Jewellery Group (123rd)
10. Wumart Technology Group (158th)
11. Gome Retail Holdings (169th)
12. Lao Feng Xiang (199th)
13. Shanghai Bailian Group (216th)
14. Topsports (234th)
1. CP ALL (60th)
2. SM Investments Corporation (178th)
3. PT Indomarco Prismatama (Indomaret) (186th)
4. Central Retail Corporation Public Company (198th)
5. PT Sumber Alfaria Trijaya Tbk (Alfamart) (209th)
6. Mobile World Investment Corporation (222nd)
In addition to companies in Greater China and Southeast Asia, the report also examined the global market. The minimum revenue for a company to enter the top 250 rankings was US$4.1 billion, up from US$4.0 billion in the previous year, with the average company size increasing from US$19.4 billion to US$20.4 billion.
The largest product sector continued to be FMCG companies, representing 66.4% of the retail revenue of the top 250 companies. Hardlines, such as appliances, and leisure goods accounted for 21% of top 250 revenue and recorded the highest year-on-year retail revenue growth rate of 14.5%.
“Despite a year of economic fits and starts, retail appears to be on an upward trajectory, with innovation in digital and sustainability as exciting bright spots in the face of the disruption and uncertainty. Unfortunately, churn is likely to stick with us for a while. The retailers that can get consumers what they want, where they want it, and when they want it will be the ones that continue to win, no matter where they operate," said Evan Sheehan, Deloitte Global’s retail, wholesale and distribution sector leader.
Currently, brands and customers care more about sustainability. Driven by the effect of consumer behaviour, government regulations, and investor sentiment, the report also uncovered that retailers globally are redirecting their strategic planning efforts and investments toward sustainable and responsible growth. Almost all the retailers in the top 250 have outlined their environmental, social and governance commitments.
Pua Wee Meng, Deloitte Southeast Asia’s consumer industry leader, said that retailers were now considering the sustainability credentials of their products, as well as their overall brand, as a core part of their business, in order to resonate with the concerns of an increasingly wide range of consumers.
"Investors are also getting increasingly conscious of how their own brand and reputation are affected by the retailers they support. Some of the key steps that regional retailers are taking to address these concerns include increasing the efficiency of energy use, using more sustainable materials, and developing climate-friendly products or services," he added.
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