International retailers often arrive in emergent markets because their homes retailing market is saturated, and growth requires stealing market share from the competition. That’s not typically the case in emergent markets, which is part of their appeal.
In emergent markets, growth depends primarily on attracting both occasional shoppers and repeat customers for whom contemporary malls and stores are a relatively new experience. The key challenges involve reaching these customers, educating them about organized retailing, and helping them smoothly transition to what for them is a new way of shopping.
Although wealth exits in emergent markets, until recently it has been concentrated in a narrow band of the population. Most emergent markets now include a rising middle class. Growing a retail business requires a proposition that appeals to potential customers at all income levels, and operators who are willing to take a long-term view of retail market development.