Role of Non-U.S. Consumer Expands - Sales Soar in Other Markets
Source: globecotnews Date: 2007-10-24
The U.S. consumer is no longer the "center of the universe"; and as the U.S. economy nears a recession, the non-U.S. consumer is expanding his/her spending. One such market is South Korea, where September retail sales grew at an outstanding rate. Retail sales at the three leading department store chains, soared 8.5 percent from the previous year, which followed 5.6 percent growth in August and was the strongest gains in two years. September sales at discount stores surged 20.9 percent, the fastest growth since February. South Korea's exports no longer depend on the U.S., with an increasing volume now going to China, Asia, Europe and the Middle East. South Korea's GDP grew 5 percent from a year ago during the second quarter of 2007, which was the fastest pace in nearly four years.
The expanding role of the non-U.S. consumer is just not in Asia. In South Africa, retail sales of textiles, apparel, leather and footwear increased 8.4 percent in August and are up 6.5 percent year-to-date. Textile sales grew 17.4 percent in August and are up 8.3 percent year-to-date. The strength in the domestic market has led to a turnaround in the South African textile and apparel industry and also represents a reversal for in the role of exports. The commodity boom has also led to increased sales in Africa's developing markets such as Angola.
In Latin America, the middle class is rapidly expanding and so is consumer spending. Apparel sales have been greatly increasing in Argentina, Brazil, Colombia and Venezuela. In Colombia, apparel retail sales grew 7.9 percent in July, marking the 43rd consecutive month of year-on-year growth. January through July cumulative apparel retail sales were up 13.9 percent from the previous year, which followed gains of 14.6 percent in 2006.
Argentina's retail market has actually been stronger than that of China. July retail sales apparel, textiles and footwear at shopping centers increased 26.2 percent, marking the 43rd month of double-digit growth. Sales of sports apparel and accessories surged 43.7 percent in July, along with a 20.8 percent increase in furnishings and household textile sales at shopping centers. Textile and apparel retail sales grew 18.2 percent in July at supermarkets, while the total volume of sales at shopping centers was nearly double the level in 2004 -- this matches the growth in China. This strength in other countries is continuing to reduce the world's dependence on the U.S. consumer.
