retail hotspots in asia pacific
TRANSCRIPT
CBRE Global Research & Consulting
2013 Year End Review
RETAIL HOTSPOTS IN ASIA PACIFIC
This report examines new store openings by retailers entering a market in Asia Pacific outside their home country
for the first time and covers the first three quarters of 2013. The previous report covered the full year 2012.
FOREWORD
kEY FINDINGS
• Developed markets such as Hong Kong and Tokyo remained the preferred entry point for retailers in Asia Pacific, particularly for retailers in the luxury and business category.
• Emerging markets in Greater China and Southeast Asia drew growing interest from retailers on the back of the steady new supply of prime retail space and growing consumer spending.
• Retailers from North America and Europe continued to lead expansion across the region with the top five countries of retailer origin (United States, Italy, United Kingdom, France and Japan) all unchanged from 2012.
• Mid to high-end fashion retailers accounted for the largest portion of new arrivals but the year saw luxury retailers adopt a more cautious strategy in mature markets. New F&B retailer arrivals held firm as consumers remained keen to spend on entertainment-based retail.
1 RETAIL HOTSPOTS IN ASIA PACIFIC |
Sector Definitions• Coffee & Restaurants: includes fast food, restaurants, confectionary retailers and coffee shops• Consumer Electronics: includes computing, phones, other electronics and electrical retailers• Homeware & Department Stores: includes DIY, department stores and furniture retailers• Luxury & Business Fashion: includes any luxury retailer from all areas of retailing, including men’s
and women’s luxury clothing/footwear, jewellery and business clothing retailers• Mid-Range Fashion: includes men’s and women’s mid-market and casual fashion retailers• Other: includes all other types of retailers including chemists, pet stores, books, music and DVD retailers• Value & Denim: includes value and discount clothing, and denim retailers• Specialist Clothing: includes general (as opposed to luxury) footwear, underwear, sportswear,
childrenswear and accessories retailers• Supermarkets: includes multiple grocery/convenience stores, supermarkets and hypermarkets
ENTRIES20
HONG KONG
ENTRIES28
SINGAPORE
TOKYO
HANOI
ENTRIES30
TAIPEI
ENTRIES17NEW DELHI
ENTRIES16
BEIJING
ENTRIES27
SEOUL
ENTRIES16
ENTRIES
SHANGHAI
26
MANILA
ENTRIES13
ENTRIES25
2RETAIL HOTSPOTS IN ASIA PACIFIC
TOP CITIES FOR NEW RETAILERS ENTRIES
Asia Pacific continued to see a steady flow of new retailer
openings in 2013 amid steady economic growth and
generally positive consumer sentiment.
International retailers continued to focus on opening
stores in Hong Kong (28 new entrants) and Tokyo
(20) as a first step towards entering other markets in
the region. Leasing demand for space in prime areas
remained strong despite high rents in many cities.
However, the limited availability of quality retail space
in core locations continued to pose a barrier to new
retailer entry in a number of key cities.
The retail scene in emerging markets, particularly
in Southeast Asia, continued to mature rapidly with
the completion of high quality new retail space and
increasingly sophisticated consumers, which spurred the
arrival of new retailers from overseas. Hanoi recorded
the highest number of new entrants of any city in Asia
Pacific in 2013 (30) while Manila (13) was also among
the top 10. In India, demand from international retailers
in New Delhi (16) was stable as more groups sought
space in prime shopping centres as opposed to high
street shops.
Greater China continued to be a key location for
expansion by international retailers as the completion of
high quality new retail supply attracted a wave of new
openings. Beijing (27) and Shanghai (26) remained
the most popular cities in the country whilst Hangzhou
(19) was also in the top 10 regionally. Taipei (17) and
Seoul (16) also saw more new names this year although
the bulk were major international retail groups with
established store networks across the region.
Established Market
Maturing/Emerging Market
3 RETAIL HOTSPOTS IN ASIA PACIFIC
The top five countries of
retailer origin were unchanged
from 2012. Retailers from the
Americas remained the most
active with 71 new entries across
Asia Pacific in 2013. Retailers
from Italy (47), the United Kingdom
(40) and France (37) were also very active,
particularly in the luxury and mid-range fashion sector.
Japan (24) completed the top five. Among retailers from
NEW RETAILERS ENTRIES BY ORIGIN
RETAILER COUNTRY OF ORIGIN
JAPANRANk 2013
#5
SINGAPORERANk 2013
#9CANADA
RANk 2013
=10SwEDEN
RANk 2013
=10
SPAINRANk 2013
#6HONG kONG
RANk 2013
#7kOREA
RANk 2013
#8
UNITED STATESRANk 2013
#1ITALy
RANk 2013
#2UNITED kINGDOM
RANk 2013
#3FRANCE
RANk 2013
#4
Asia Pacific markets, Coffee
& Restaurants, Specialist
Clothing and retailers in
the “Other” category were
most active in expanding
across the region. Retailers from
Japan and Hong Kong entered
several new markets while Korean and
Singaporean retailers were also active.
26%
AMERICAS
20%
ASIA PACIFIC
54%
EMEA
4RETAIL HOTSPOTS IN ASIA PACIFIC
NEW mARkET ENTRIES BY RETAIL SECTOR
Luxury and business retailers accounted for 26% of
new entrants in the region in 2013, the same figure
as in 2012. Mid-range fashion retailers comprised
just over 21% of new entrants compared to 18% last
year whilst retailers of specialist clothing, particularly
footwear and underwear, accounted for 16% of new
entrants, compared to 12% last year. The Coffee &
Restaurants category also improved its share on
a yearly basis but the proportion of new entries by
Value & Denim retailers declined to 8.5% compared
to 11% a year previously. There were no new entrants
in the consumer electronics sector. Other sectors were
largely unchanged on a yearly basis.
Coffee and Restaurants
26%
14%16%
5%8%
21%
9%
1% 0%
Homeware andDepartment Store
Luxury and Business
Value and Denim
Supermarket
mid-Range Fashion
Other ConsumerElectronics
Specialist Clothing
23
0
5
10
15
20
25
30
35
40
45
50
55
60
55
27
38
19
2
30
LUX
URY
AN
D B
USI
NES
S
MID
-RA
NG
E FA
SHIO
N
SPEC
IALI
ST C
LOTH
ING
21
15
VA
LUE
AN
D D
ENIM
18
25
CO
FFEE
AN
D R
ESTA
URA
NT
79
HO
MEW
ARE
AN
D D
EPA
RTM
ENT
STO
RE
9
17O
THER
SUPER
MA
RK
ET
5 RETAIL HOTSPOTS IN ASIA PACIFIC
Established City Maturing/Emerging City
Around 70% of new market entries in Asia Pacific were
in emerging markets and 30% in developed markets,
compared to a half/half share in 2012. Luxury &
Business Fashion retailers entering the region for the
first time continued to opt for Hong Kong or Tokyo as
the location for their first store. In comparison, groups
already established in Asia Pacific focused on expansion
in emerging cities. Seoul and Taipei were the subject
of increasing interest but the spotlight remained on
emerging locations in China, India and Southeast Asia.
Mid-Range Fashion and Specialist Clothing retailers,
in particular footwear and underwear, were active in
in Greater China and North Asia. Fast fashion labels
NU
MBE
R O
F N
EW M
ARKE
T EN
TRIE
S
introduced more sister or secondary brands and also
opened stores in secondary cities in China and Japan.
Value & Denim retailers were active in the same locations
but new openings in developed markets by retailers in
this category declined compared to the previous year.
More retailers planning entry to new markets were
forced to wait for the right space to become available
due to the lack of supply in prime areas. Others opted
to make their debut in other cities. Retailers in the Coffee
& Restaurants category continued to expand over the
course of the year. However, Asian groups tended to
focus on developed markets whilst emerging locations
saw more activity by retailers from the Americas.
NEW RETAILER ENTRIES BY SECTOR & CITY mATURITY
OUTLOOk
The outlook for the Asia Pacific economy remains relatively positive. Domestic consumption is solid in most parts
of the region and consumer sentiment remains healthy, albeit clouded to a certain extent by economic uncertainty
in the United States and Eurozone. Retail sales are expected to continue to see positive growth in 2014 but at a
slower rate compared to 2013.
Retailers already established in the region, particularly those in the Mid-Range Fashion category, will continue
to focus on emerging markets in Southeast Asia including Indonesia, Thailand, the Philippines and Vietnam for
new market entry and expansion given continued growth in domestic consumption and the rising middle class
populations. Taiwan and Australia will also be a major focus. Groups new to the region will continue to prefer
Hong Kong, Singapore and Tokyo as their first port of call, although the lack of new prime retail supply will continue
to inhibit leasing activity to a certain extent. India will continue to see some activity although the rate of entry could
be slowed by complications surrounding new legislation regarding foreign direct investment in multi-brand retail.
6RETAIL HOTSPOTS IN ASIA PACIFIC
© 2013, CBRE, Group Inc. CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
ASIA PACIFIC RESEARCH CONTACTS
COUNTRy CONTACTS
Nick Axford Global Head of ResearchT: +852 2820 8198E: [email protected]
Jonathan HsuDirector, Asia PacificT: +852 2820 2957E: [email protected]
Liz HungManager, Asia Pacific T: +852 2820 6557E: [email protected]
ASIA PACIFIC RETAIL CONTACTS
Australia & New ZealandAlistair PalmerNational DirectorRetail ServicesT: +61 2 9333 3396 E: [email protected]
AsiaSebastian SkiffExecutive DirectorRetail, AsiaT: +852 6335 2023 +86 156 260 79333E: [email protected]
CONTACTS
*Part of the CBRE Affiliate Network
China Hsiang-yun Chu Senior DirectorRetail ServicesT: +86 21 2401 1322 E: [email protected]
Joel StephenDirector Retailer RepresentationT: +86 21 2401 1375 E: [email protected]
kenith kongDirectorRetail ServicesT: +86 10 8588 0706 E: [email protected]
Hong kongJoe LinExecutive DirectorRetail Services T: +852 2820 2860 E: [email protected]
Neil HowardAssociate DirectorHong KongT: +852 2820 1437E: [email protected]
India Vivek kaulHead of Retail ServicesIndiaT: +91 12 4465 9856E: [email protected]
Indonesia*Hendra HartonoCEOPT. Leads Property Services T: +62 21 2903 5111E: [email protected]
JapanShina FukuiSenior AssociateTokyoT: +81 3 5470 8878E: [email protected]
yuki NakamuraAnalystT: +81 3 5470 8436E: [email protected]
Malaysia*Allan SooManaging DirectorMalaysiaT: +603 2092 5955 E: [email protected]
Philippines*Joanie L. MitchellDirectorT: +632 752 2580 E: [email protected]
SingaporeLetty LeeDirectorRetail ServicesT: +65 6326 1230 E: [email protected]
South koreaAiden Hwang Associate DirectorRetailer RepresentationT: +82 2 2170 5866 E: [email protected]
TaiwanDories Lu Associate DirectorRetail Services, TaiwanT: +886 2 7706 9526E: [email protected]
Thailand*Jariya ThumtrongkitkulSenior ManagerRetail and Industrial Services, Thailand T: +66 2 654 1111 ext. 221 E: [email protected]
Vietnam & Cambodia*Richard Leech Senior DirectorRetail ServicesT: +84 4 2220 0220E: [email protected]