Asia Pacific retailers are focused on expanding in the Asia Pacific region, a recent global report by CBRE Research has found. The How Active Are Retailers Globally? survey found that Asia Pacific-based retailers see significant potential in Asia Pacific, and that all of their top ten target destinations for expansion in 2014 are within the region. China is a target for 58% of Asia Pacific-based retailers, making it the most sought after market, followed by Vietnam (48%), Malaysia (42%), Indonesia (39%) and Singapore (35%).
“The relatively lower levels of interest by Asia Pacific retailers in expanding in American and European markets reflect a cautious attitude to expanding out of their core markets, but that said we are beginning to see a number of Asia-based brands working on strategies for global markets. For example, Chinese brand Bosideng opening on Oxford Street in London and a number of other Chinese brands looking to launch New York and Australia,” commented Sebastian Skiff, Executive Director of CBRE Retail.
Retailers’ expansion plans in Asia Pacific are relatively modest, with 29% planning to open less than five stores and a further 26% looking to open between 5-10 stores in 2014.
“Most retailers active within Asia Pacific have tended to focus operations within a few countries, and locations are generally limited to the key or top tier cities where quality retail space is accessible. Tougher trading conditions in most markets has tempered expansion ambitions for the short term, however, over the longer term we expect economic growth and the rising middle class in Asia to spur further growth,” said Mr Skiff.
Global Retailers’ Targets
The report found that retailers globally are predominantly targeting countries with mature retail sectors, although a number of emerging markets in Asia Pacific also feature strongly. Retailers originating from Europe have shown a strong bias towards their own region with less than 15% of retailers targeting markets outside the region. Retailers from the Americas are biased towards the US, but are also targeting European markets, and in particular Germany.