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Magazines Archives - 2010 July
China, Japan among top 10 retail destinations in Asia, says CBRE report
Story 7 - News
CHINA and Japan are among the top 10 retail destinations in Asia that global retailers consider when venturing abroad, a recent study revealed.
Released by global research and consulting group, CB Richard Ellis (CBRE), the 2010 edition of the companys special report titled How Global is the Business of Retail? also identified that 49% of 294 retailers from 69 countries surveyed were in each of the three main global regions, namely Europe, North America and Asia, but to varying degrees.
In China, three cities, namely Hong Kong, Beijing and Shanghai, came in the top 10 of the ranking, while Tokyo, Japan, maintained its No.7 spot this year. Chinas large population and its growing affluence cannot be ignored, compared with the wealthy, but stagnant western market. The growth and performance of those brands which have entered the Chinese market attract other retailers who have few or no stores in China, said Bryn Davies, CBRE Asias board director.
Singapore, however, which ranked No.8 last year, slipped three spots to No.11, with only 39% of the global retailers surveyed having a presence in the city-state. Letty Lee, CBRE Singapores director of retail services, pointed out that as the survey is based on a basket of brands across the major cities
Singapore appears to have missed out on quite a bit of opportunity in attracting retailers in the past decade with the tight [space] supply situation.
There is, however, a lot of untapped potential in Singapore given that its retail space per capita is at 7.2sqf relatively lower than other cities. The other cities, with their ready and bigger catchments of affluent consumers, have been able to attract a steady stream of retailers over the years, Lee added.
The study also noted that Asian retail brands are less expansive on a global scale, with 60% of retailers preferring to stay within their home region. However, overall, retailers continued to globalise, with over 43% of their new openings last year seen outside their home region, a 3% growth from 2008.
London, Dubai, Paris, New York and Hong Kong maintained their top positions on the ranking this year with the most percentage of retailers in these cities, while Beijing, Moscow and Shanghai rose up the ranking to No.6 and No.8 (both Moscow and Shanghai) respectively.
The composition of this top group is hardly surprising, as these are large international cities with strong local and regional catchments that attract large numbers of affluent consumers. They also have high levels of tourist and business visitors, and are thus for various reasons very attractive locations for international brand retailers, it stated.
Additionally, Hong Kong was identified as the top-ranked city for luxury & business fashion, attracting over 90% of all retailers in this sector, the study continued, while Taipei jumped from No.17 to rank fourth this year under this category, an indication that Asian cities are attracting a far higher proportion of luxury brands than of other types of retailer.
The report, now in its third year, looked to document the presence of leading global retailers across 197 of the worlds largest cities, examining their global expansion in light of the recent economic downturn and to provide a benchmark to assess future changes in the evolving global environment. ra
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