The window of opportunity for international retailers in China is continuing to close, as the market becomes saturated, according to an annual study of emerging retail markets by consultants AT Kearney.

China dropped from fourth to fifth place in AT Kearney's 2006 Global Retail Development Index, while India retained its position as potentially the most attractive developing market for retailers seeking international expansion.

Fadi Farra, lead author of the report, said it underlined the importance to retailers of timing their entrance into an emerging market, estimating there was a five-10 year window of opportunity. "China was number one five years ago. Now China isn't the place to be: India is."

The study suggests Asia as a whole has overtaken eastern Europe as the most attractive region for potential retail expansion, as membership of the European Union speeded market saturation in the former communist states. Asia's prospects were supported by regulatory changes in India, and the gradual opening of Vietnam, which jumped from eighth to third place in the index this year. "Vietnam today is similar to India five years ago," said Mr Farra. . .

[From the Financial Times]