CBRE Releases the Latest “How Active Are Retailers Globally?”
March 18, 2014, Beijing – A recent CBRE global report How Active Are Retailers Globally? ranked China first among global retailers’ target markets for 2014 in the Asia Pacific region, and fifth globally. China is a target for 22% of global retailers and 58% of Asia-based retailers, making it the most sought after market in the region, followed by Hong Kong, Singapore, Vietnam, Indonesia and Malaysia, all of which feature in the top 20 target markets globally.
With its solid fundamentals and landlords’ welcoming attitude, CBRE still sees a strong market for retailers to debut and expand in China, with for example, the likes of Apple expanding and New Look aiming to enter China in 2014. In 2013, Beijing and Shanghai each welcomed nearly 30 new retailers, respectively, and ranked in the top five retail markets in Asia, according to CBRE’s Retail Hotspots in Asia Pacific, 2013 edition. The wide range of new entrants included Agent Provocateur, Stella McCartney, Ted Baker, Oroton, CH Carolina Herrera, and Old Navy, which is set to open in 2014. This trend is expected to continue through 2014 and in the years ahead.
“China is currently a very exciting place to be as a retailer. Globally speaking, the Chinese consumer accounts for a significant proportion of many retailers’ sales, whether they are registered through their stores in China or London, New York, Paris and elsewhere. Having a strong presence in China is an important strategy to drive sales across a brand’s global locations, not just within China itself,” commented Sebastian Skiff, Executive Director, CBRE Retail.
“Consumer sentiment is among the highest in the world and the retail sales market is expected to expand in 2014 on top of the RMB 23.4 trillion achieved in 2013. The government has decided to set a target to double household income by 2020; this only adds to the attractiveness of a market that is seeing significant interest from international brands,” Mr. Skiff added.
The report shows that the landscape of China retail market is changing rapidly. Consumers in ‘tier one’ cities have reached a level of sophistication and knowledge of fashion that compares to their peers in global markets. The super-rich are more discerning in product choice. A growing number of consumers are now adventuring away from the ’typical’ core luxury brands and show high levels of interest in niche luxury products and bridge brands that make more of an individual, unique statement about personality. The same trend can be seen in various product categories and price points, not just premium and luxury, including value and fast fashion, lifestyle, and home.
Increasingly, lifestyle and experience-oriented elements are being added to shopping centres, such as specialty restaurants, leisure concepts and cinemas, as landlords are finding that shopping centers have to differentiate and retain customers via both better tenant mixes and marketing campaigns. Many developers are also enacting fundamental design and functionality changes for their venues as a result of the effects of e-commerce.
Hsiang-Yun Chu, Senior Director, Retail Services, CBRE China, said, “China represents a huge potential market for both international and domestic brand owners and developers. For every company, identifying where these opportunities lie and addressing the dynamic market shifts can be extremely challenging. As a reliable partner, CBRE can help them to grow with our sophisticated international practices and strong local experience
Top Ten Target Markets for Asian Retailers in 2014
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
