3G Penetration – 3G subscriptions out of total mobile subscriptions
Addressable Population – a subset of the total population that is addressable by chain retail. It is the population that has access to chain retail (i.e. lives in an urban area or has access to transportation) and has enough money to shop in chain retail stores.
Birth Rate – the number of live births in a year expressed as a percentage of the population or per 1,000 people (World Bank).
Broadband Penetration – number of broadband subscriptions divided by the total population
Cell Phone Penetration – number of cell phones in rotation divided by the total population
Chain Retail – retailers that are part of formal retail (i.e. pay taxes to the government) and have more than 5 stores.
China Zone- Part of Pacific Group composed of China, Hong Kong, Mongolia, South Korea, Taiwan
Consumption – the market value of all goods and services, including durable products (such as cars, washing machines, and home computers), purchased by households. It excludes purchases of dwellings but includes imputed rent for owner-occupied dwellings. It also includes payments and fees to governments to obtain permits and licenses. Here, household consumption expenditure includes the expenditures of nonprofit institutions serving households, even when reported separately by the country. This item also includes any statistical discrepancy in the use of resources relative to the supply of resources (World Bank). Consumption is one of the 4 components of GDP (Consumption, Government Expenditures, Investment, and Net Exports).
Developed Market – markets with GDP per capita greater than the world average and real GDP growth less than the world median growth. The average Developed markets GDP per capita in 2010 is $34,236 and the average nominal GDP CAGR 2011E-2015E is 4.2%.
Developing Market – markets with GDP per capita less than the global average and do not have substantial real GDP growth. The average Developing market GDP per capita in 2010 was $2,241 and the average nominal GDP CAGR 2011E-2015E is 10.4%.
East and Central Africa Zone - Part of Eurasia and Africa composed of Angola, Botswana, Burundi, Central African Republic, Comoros, Democratic Republic of Congo, Republic of Congo, Dijibouti, Eritrea, Ethiopia, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Seychelles, Swaziland, Tanzania, Uganda, Zambia, Zimbabwe
Emerging Market – markets with GDP per capita greater than the world median while also having real GDP growth greater than the world median growth or a market is considered Emerging if it is experiencing extremely high real GDP growth (i.e. greater than 8%). The average Emerging market GDP per capita in 2010 was $11,928 and the average nominal GDP CAGR 2011E-2015E is 11.3%.
Eurasia and Africa-Group composed of 8 zones: East & Central Africa, India, Middle East & Southern Eurasia, Nigeria, North & West Africa, Russia, Ukraine & Belarus, South Africa, and Turkey.
Fertility Rate – the average number of children a woman will have during her lifetime, by country or region (World Bank).
Formal Retail – a subset of Total Retail. It is comprised of Chain Retail and Traditional Retail (ie, independents and “mom & pop”). Formal retail is a metric that is reported by individual market statistical bureaus.
Front Fill – opening or acquiring stores to get into a new market
GDP (Gross Domestic Product) – the value of all final goods and services produced in a country in one year. GDP can be measured by adding up all of an economy’s incomes- wages, interest, profits, and rents- or expenditures- consumption, investment, government purchases, and net exports (exports minus imports). Both results should be the same because one person’s expenditure is always another person’s income, so the sum of all incomes must equal the sum of all expenditures (World Bank).
GDP per Addressable Capita – GDP divided by addressable population
GDP per Capita – GDP divided population
Germany Zone- Part of the Europe Group composed of Germany
Global Mobility - transition of markets from one development stage to another (i.e. from developing to emerging to developed)
Iberian Zone- Part of the Europe Group composed of Portugal and Spain
India Zone- Part of Eurasia & Africa composed on Bangladesh, Bhutan, India, Maldives, Nepal, Sri Lanka
In-Fill – acquiring a retailer to expand presence in a market through a new channel, geographic reach (new state/city to increase penetration), new target shopper etc.
Informal Retail – a subset of Total Retail. RNG views it as any shop/store that is not recognized by the government (i.e. does not pay government taxes). Informal retail often takes the form of open air markets. This metric is an RNG estimate.
Internet Penetration – percentage of the population that uses the internet
Japan Zone – Part of the Pacific Group composed of Japan
Labor Force – all the economically active people in a country between 15 and 65. Includes all employed persons, the unemployed, and members of the armed services, but excludes students and unpaid caregivers such as homemakers (World Bank).
Latin America- Group composed of 4 zones: Brazil, Latin Center, Mexico, and South Latin.
Latin Center Zone- Part of Latin America Group composed of Antigua and Barbuda, Bahamas, Barbados, Belize, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Nicaragua, Panama, St. Kitts & Nevis, St. Lucia, St. Vincent & Grenadines, Suriname, Trinidad & Tobago, Venezuela
Local Retailer – a retailer that has stores in only one market.
Markets on the Move – rapidly developing markets (Developing or Emerging) that will move into a new development stage over the next ten or twenty years.
Mexico Zone - Part of the Latin America Group composed of Mexico
Middle East & Southern Eurasia Zone- Part of Eurasia & Africa composed of Afghanistan, Armenia, Azerbaijan, Bahrain, Georgia, Iran, Iraq, Israel, Jordan, Kazakhstan, Kuwait, Kyrgyz Republic, Lebanon, Oman, Pakistan, Qatar, Saudi Arabia, Syria, Tajikistan, Turkmenistan, United Arab Emirates, Uzbekistan, Yemen
Multi-Continent Retailer – a retailer that has stores on multiple continents.
Multi-Market Retailer – a retailer that has stores in multiple countries, but not on other continents.
Nigeria Zone – Par of Eurasia & Africa composed of Nigeria
Nominal Indicator – an indicator measured using the prices prevailing at the time of measurement. A change in a nominal indicator sometimes reflects changing market prices more than any other changes (changes in the real indicator). Nominal indicators are those converted into US dollars using current exchange rates, while real indicators are calculated based on purchasing power parity (PPP) conversion factors (World Bank).
Non-Chain Formal Retail – retailers that are part of formal retail (i.e. pay taxes to the government) but have less than 5 stores. It is comprised mostly of independents and “mom & pops”.
North America – Group composed of 2 zones: Canada and USA.
North & West Africa Zone- Part of Eurasia & Africa composed of Algeria, Benin, Burkina Faso, Cameroon, Cape Verde, Chad, Côte d’Ivoire, Egypt, Equatorial Guinea, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Libya, Mali, Mauritania, Morocco, Niger, São Tomé and Príncipe, Senegal, Sierra Leone, Sudan, Togo, Tunisia
Northwest Europe and Nordic Zone - Part of Europe Group composed of Belgium, Denmark, Finland, France, Iceland, Ireland, Luxembourg, Netherlands, Norway, Sweden, UK
Pacific Group - Group composed of 5 business units: China, Japan, Philippines, South Pacific, and Southeast & West Asia
PC Penetration – percentage of households with a PC
Philippines Zone- Part of the Pacific Group composed of Philippines
Proximity Retailing – small box, convenience formats
Real Indicator – an economic indicator that uses the prices from some base year. This approach controls for fluctuating market prices so that other economic changes can be seen more clearly. In cross-country comparisons, this term also applies to the conversion of indicators calculated in local currency units into some common currency, most often US dollars. Real indicators are calculated with the help of purchasing power parity (PPP) conversion factors, while nominal indicators are those converted into US dollars using current exchange rates (World Bank).
Russia, Ukraine, & Belarus Zone – Part of Eurasia & Africa composed of Belarus, Russia, Ukraine
Saturation – the number of Addressable people per store. This is a critical metric for competitive intensity and retail health.
SBR – Store Based Retailer
Segment – RNG further divides its 13 channels into 41 different segments.
Smart Phone Penetration – number of smartphones in circulation out of total phones
Social Network Penetration – Percentage of internet population using a social network
South Africa Zone – Part of Eurasia & Africa composed of South Africa
Southeast & West Asia Zone - Part of the Pacific Group composed of Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Papua New Guinea, Singapore, Thailand, Timor-Leste, Vietnam
South Latin Zone - Part of the Latin America Group composed of Argentina, Bolivia, Chile, Paraguay, Peru, Uruguay
South Pacific Zone- Part of the Pacific Group composed of Australia, Fiji, Kiribati, New Zealand, Samoa, Solomon Islands, Tonga, Vanuatu
Total Retail – Formal Retail + Informal Retail
Transfer Payments - Payments from the government to individuals used to redistribute a country’s wealth. Examples are pensions, welfare, and unemployment benefits (World Bank).
Turkey Zone – Part of Eurasia & Africa composed of Turkey
Urbanization – refers to an increase in the proportion of a population living in urban areas. It is a process by which a large number of people becomes permanently concentrated in relatively small areas, forming cities (United Nations).
Urban Population – population living in areas classified as urban according to the criteria used by each area or country.
RNG Channel & Segment Definitions