Luxury retail continues to show strongest growth in the prime Asian cities according to Colliers International’s latest global retail report.
One key factor driving luxury sales is rising consumer confidence due in part to consumers’ fading memories of the recent global economic crisis. Another factor is the sizable gain in income of the highest earners – driving an increased propensity to spend.
“Our analysis reveals a retail market that is cautiously optimistic and steadily growing in many sectors despite some hiccups of caution due to threats to global economic growth and the shadow of e-commerce,” said Anjee Solanki, national director, retail services, USA with Colliers International.
Simon Lo, executive director of research & advisory, Asia, said the increased popularity of eCommerce in Asia – particularly in China and India – are having a significant impact.
“Top end brands will continue to stay in core areas but mid-tier brands will be moving to decentralised sub-markets as the new supply of retail stocks in core districts of some cities are very limited,” he said.
Other key findings include:
- New supply is robust in developing markets. The global expansion of the workforce and the middle class is spurring a need for new supply.
- Optimism is tempered by threats to global economic growth and the specter of e-commerce. E-commerce is affecting both traditional and luxury retailers across the globe
- Strong performance of high street markets and growing development in emerging markets. The generally positive outlook is underpinned by the economic recovery in the US and strong job growth in many parts of the globe.