Retail in Asia

In Markets

HK, Singapore, Shanghai, Beijing and Tokyo among top 20 global cities for international retailers

Hong Kong, Singapore, Shanghai, Beijing and Tokyo are among the top 20 cities where international retailers have the largest presence, according to the 2012 edition of How Global is the Business of Retail? by global property adviser CBRE.

CBRE’s annual survey – now in its fifth year – mapped the global footprint of 326 of the world’s top retailers across more than 200 cities to identify trends in global retail expansion at national and local levels. The report found that retailers expanded into a wide range of markets in 2011, with 74 percent of the countries in the survey seeing at least one new leading international retailer entered the market last year. The overall global footprint of retailers grew 2.1 percent, similar to the previous year, demonstrating that retailers continue to grow their cross-border businesses in spite of a challenging consumer environment.  

Among the top 20 cities for international brands, Hong Kong continues to be number one among Asian cities and ranked sixth globally with 40.5 percent of retailers having a presence. Singapore (38.9 percent) ranks in tenth position, followed by Shanghai (ranked #11), Beijing (ranked #13) and Tokyo (ranked #19). The remainder of the top 20 comprises a mix of traditional and emerging markets, providing an indication of how global the international retail business really is. 

Sebastian Skiff, Executive Director of CBRE Retail Asia, commented: "The results show very healthy levels of activity in the key Asian markets as brands continue to look for new growth opportunities. The continuing rise in consumer purchasing power and an ever increasing level of fashion sophistication have attracted the leading global brands to continue investing in new market entry. After opening their first store in a market, many retailers have quickly expanded their footprint in the city, with brands often now represented in six or seven free standing store locations in major cities such as Tokyo, Seoul, Hong Kong, Beijing, Shanghai and Singapore. We are seeing a continued flow of new brands approaching us for help in targeting the Asia markets and we see strong demand for 2013 from US, European and Australian brands". 

Other key findings in the report include: 

  • In the luxury sector, Hong Kong has for the third year running topped the ranking for cities with the most luxury and business fashion retailers, with Singapore, Beijing and Tokyo all in the top 10. European retailers in particular see Asia as a significant target, with these cities as the highest priority. 
  • For new retailer entries in the region, Vietnam has been a consistently growing market over the last two years, with a large, young and increasingly affluent population who are becoming ever more fashion conscious.
  • Among the Asian brands, Japanese retailers have historically been the most aggressive in expanding cross-border but a new wave of Chinese and Korea retail groups are expected to move into new markets and regions in medium term. 
  • Chinese cities will continue to dominate shopping centre development activity, over the next few years. Eight out of the top 10 most-active retail development markets globally are in China. Tianjin heads the list with 2.5 million square meters currently under construction, followed by Shenyang and Chengdu. Outside China, the most active global development markets are Abu Dhabi, Hanoi, Kuala Lumpur (Klang Valley) and New Delhi.

On a global basis, London has reclaimed the number one position as the most targeted market for international retailers. The city attracts more than half (55.6 percent) of all international retail brands surveyed after sharing the top spot with Dubai last year. While Dubai (53.8 percent) still holds considerable global pulling power, it dropped into second position due to a handful of retailers exiting the market. New York (43.9 percent) remains in third position. London benefited from a mini-boom in 2011 as tourist spending boosted a relatively robust local economy, and remains a key hub for retailers looking to expand into Europe. The United Kingdom also retains number one position as the world’s most popular national market for international retailers with 56.7 percent of retailers in the survey present there. 

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