Despite slowing expansion, global retailers still see massive market potential in Beijing, Hong Kong, and Asia-Pacific overall, according to a new report by commercial real estate services firm CBRE.
In a survey of more than 300 top international retailers in 61 countries and 191 cities, data revealed Hong Kong to be the top destination in 2015 for new market entrants, rising four places and beating Tokyo, which dropped from first to third place.
In its report titled “How Global is the Business of Retail?” 334 retailers were broken down into categories, with 54 retailers making up the luxury sector, which included men’s and women’s clothing and jewelry. The mid-range fashion category included 70 retailers.
The data looked at cross-border retail overall, finding that the number of new entrants to cities around the globe rose 3.1 percent in 2015 compared to 2014. However, the rate of expansion among the retailers in the survey slowed, with only a 1.6 percent growth at city level and 2 percent at country level.
CBRE attributes the slowdown to the fact that companies are putting more resources towards growing their e-commerce presence.
Last year, 73 brands launched in Hong Kong, while in Beijing, 37 brands opened shop, putting China’s capital city at number eight.
(Source: Jing Daily)