Asia Pacific Special Report - The New Age of the Asia Pacific Retail Market December 2014
The Asia Pacific retail market has expanded at a rapid rate in recent years on the back of strong economic growth and the emergence of a large and prosperous middle class. This has prompted an influx of international retailers to the region, which in turn has fuelled the construction of a large volume of new retail real estate.
However, retailer demand has slowed in a number of key regional markets this year as stagnant consumption and labour costs discourage retailers from expansion in the likes of Hong Kong and Singapore. Elsewhere, the anti-corruption campaign in China remains in force and has resulted in a significant slowdown in the luxury retail sector.
There are a few bright spots such as Japan, where retailer demand is strengthening across all sectors following the recent uptick in economic fortunes. Nevertheless, the business environment in Asia Pacific is expected to continue to turn more challenging overall. Retailers will have to grapple with slower economic growth; rising operational costs; and stronger competition from new shopping channels, such as e-commerce.
In this special report, CBRE Research Asia Pacific will present an overview of the drivers and trends that are shaping today’s Asia Pacific retail market. The report pays particular attention to the challenges facing shopping centre landlords in the region and identifies appropriate strategies to ensure they stay relevant in what will be an increasingly competitive marketplace.