Tokyo, Bangkok, and Seoul Lead Asia Pacific Retail Innovation Index: CBRE

Asia Pacific – November 26, 2024 – CBRE’s Asia Pacific Retail Innovation Index reveals that Tokyo, Bangkok, and Seoul are at the forefront of retail innovation, driven by their dynamic domestic retail ecosystems, diverse tourism markets, and vibrant cultural and entertainment offerings.

The index highlights key drivers of innovation in retail real estate, such as market size, consumer demographics, retailer expansion strategies, and the availability of cutting-edge retail spaces. While several major cities in Asia Pacific face capacity constraints and ageing populations, emerging markets like Bangalore, Shenzhen, Brisbane, and Ho Chi Minh City show significant potential for retail growth. These cities, supported by robust population growth and consumer expenditure, present promising opportunities for new retail concepts and strategies.

“With brick-and-mortar retail continuing to play a pivotal role in our shopping journey, innovation is the key to success. Vibrant retail hubs, characterized by diverse leasing demands, serve as catalysts for fostering innovation and collaboration," said Vivek Kaul, Head of Retail, Asia Pacific for CBRE.

Since the pandemic, prime retail properties have become more accessible, with rents declining in half of Asia Pacific retail markets. This trend has created opportunities for retailers to enhance and broaden their presence. Japan and India have emerged as hotspots for retailer expansion, fuelled by strong demand across diverse retail trade categories.

Over the past decade, close to 70% of new retail stock in Asia Pacific has been concentrated in mainland China’s top-tier cities, with Shenzhen at the forefront of retail development. In contrast, cities in India and Vietnam face limited new supply, posing challenges for retailers seeking premium real estate options.

To create an innovative retail ecosystem, the identification of brands with fresh concepts and the integration of pop-up concepts and short leases can foster a dynamic and immersive shopping experience.

“Despite the challenges post-pandemic, the decline in prime rents across half of Asia Pacific’s retail markets presents a unique opportunity for retailers,” said Ada Choi, Head of Research, Asia Pacific for CBRE. “Rather than operating identical stores with standard offerings, retailers can leverage physical spaces to tell their brand story and create memorable experiences that resonate with diverse generations seeking social and immersive interactions beyond the virtual world.”

To read the full report, click here.

END

Follow us on X (formerly Twitter): @cbreasia
LinkedIn: company/cbre-asia-pacific