Asia-Pacific retailers ramp up overseas expansion
Asia-Pacific retailers as increasingly embracing overseas expansion, according to new research by commercial real estate company CBRE.
The report, Rise of Apac Retailers 2018, analysed 600 openings in the region, showing the proportion of Apac retailers (predominantly F&B operators, fashion and beauty brands) had increased from 17 to 30 per cent between 2014 and last year, accounting for almost a third of new regional entrants. The strongest target markets are China, Hong Kong, Taiwan and Singapore, while the expansion itself has been shown to strengthen brands in their home markets.
Most retailers expanding into Apac territories are from Australia, Japan and Korea.
The firm’s head of retail, advisory and transaction services Asia Vivek Kaul said: “Apac retailers are becoming a driving force in the region, spurred on by potential revenue growth and the need for stronger brand awareness. This expansion is not focused on one single market – instead, it reflects the diversity and dynamism within Asia Pacific’s retail sector.”
Associate director of Asia Pacific research Liz Hung said whether they are establishing flagship stores in gateway cities or testing the waters in emerging markets, Apac brands are “increasingly adopting a savvier approach” to regional expansion.