Brazil is the most attractive emerging market for clothing retailers, according to a study released this week.
The Latin American country’s high spend on clothing and shoppers’ tastes for trends are the key reasons for its attractiveness to retailers.
Brazil came ahead of China and India in the study, which uses 10 factors to rank the top 30 emerging markets for clothing retail investments.
The Global Retail Apparel Index is the first time that management consultant AT Kearney has published an index specifically for clothing retailers.
Brazil’s clothing market is growing at more than 7% annually and is estimated to be worth US$37.2 billion (£18.9bn), according to the study.
The study ranked the countries on factors including consumer spend on fashion, economic growth over the past five years and GDP per capita, explained AT Kearney partner Hana Ben-Shabat.
She said: “Brazil is a very large market with 190 million people, with 60% under the age of 29. Brazilians are very fashion conscious, with the average clothing spend is US$402 (£204) per person per year.
She added that good quality space was well established in the country. “Zara and C&A are there already but there is a good opportunity for more fashion retailers to expand. Businesses which focus on fashion such as New Look, Topshop or H&M would do better,” said Ben-Shabat.
According to AT Kearney, the Chinese market is still growing with a clothing market worth US$84bn (£42.7bn), which is behind only the US and Japan.