RETAIL

HOTSPOTS

IN ASIA PACIFIC
2013 Year End Review

CBRE Global Research & Consulting

FOREWORD
This report examines new store openings by retailers entering a market in Asia Pacific outside their home country
for the first time and covers the first three quarters of 2013. The previous report covered the full year 2012.
Sector Definitions
Coffee & Restaurants: includes fast food, restaurants, confectionary retailers and coffee shops
Consumer Electronics: includes computing, phones, other electronics and electrical retailers
Homeware & Department Stores: includes DIY, department stores and furniture retailers
Luxury & Business Fashion: includes any luxury retailer from all areas of retailing, including mens
and womens luxury clothing/footwear, jewellery and business clothing retailers
Mid-Range Fashion: includes mens and womens mid-market and casual fashion retailers
Other: includes all other types of retailers including chemists, pet stores, books, music and DVD retailers
Value & Denim: includes value and discount clothing, and denim retailers
Specialist Clothing: includes general (as opposed to luxury) footwear, underwear, sportswear,
childrenswear and accessories retailers
Supermarkets: includes multiple grocery/convenience stores, supermarkets and hypermarkets

key findings
Developed markets such as Hong Kong and Tokyo remained the preferred entry point
for retailers in Asia Pacific, particularly for retailers in the luxury and business category.
Emerging markets in Greater China and Southeast Asia drew growing interest from retailers
on the back of the steady new supply of prime retail space and growing consumer
spending.
Retailers from North America and Europe continued to lead expansion across the region
with the top five countries of retailer origin (United States, Italy, United Kingdom, France
and Japan) all unchanged from 2012.
Mid to high-end fashion retailers accounted for the largest portion of new arrivals
but the year saw luxury retailers adopt a more cautious strategy in mature markets.
New F&B retailer arrivals held firm as consumers remained keen to spend on
entertainment-based retail.

RETAIL HOTSPOTS IN ASIA PACIFIC |

top cities for new retailers entries

Asia Pacific continued to see a steady flow of new retailer

arrival of new retailers from overseas. Hanoi recorded

openings in 2013 amid steady economic growth and

the highest number of new entrants of any city in Asia

generally positive consumer sentiment.

Pacific in 2013 (30) while Manila (13) was also among

the top 10. In India, demand from international retailers

International retailers continued to focus on opening

in New Delhi (16) was stable as more groups sought

stores in Hong Kong (28 new entrants) and Tokyo

space in prime shopping centres as opposed to high

(20) as a first step towards entering other markets in

street shops.

the region. Leasing demand for space in prime areas

remained strong despite high rents in many cities.

Greater China continued to be a key location for

However, the limited availability of quality retail space

expansion by international retailers as the completion of

in core locations continued to pose a barrier to new

high quality new retail supply attracted a wave of new

retailer entry in a number of key cities.

openings. Beijing (27) and Shanghai (26) remained

the most popular cities in the country whilst Hangzhou

The retail scene in emerging markets, particularly

(19) was also in the top 10 regionally. Taipei (17) and

in Southeast Asia, continued to mature rapidly with

Seoul (16) also saw more new names this year although

the completion of high quality new retail space and

the bulk were major international retail groups with

increasingly sophisticated consumers, which spurred the

established store networks across the region.

27
ENTRIES

16

20

ENTRIES

ENTRIES

BEIJING

26

SEOUL
TOKYO

ENTRIES

16
ENTRIES

NEW DELHI

SHANGHAI

28

30

17
ENTRIES

ENTRIES

ENTRIES

TAIPEI
HANOI

HONG KONG

13
ENTRIES

Maturing/Emerging Market
Established Market

MANILA

25
ENTRIES

SINGAPORE
RETAIL HOTSPOTS IN ASIA PACIFIC

new retailers entries by origin

EMEA
AMERICAS

The top five countries of

retailer origin were unchanged
from 2012. Retailers from the

26%

ASIA PACIFIC

54% 20%

Asia Pacific markets, Coffee

& Restaurants, Specialist
Clothing and retailers in

Americas remained the most

the Other category were

active with 71 new entries across

most active in expanding

across the region. Retailers from

Asia Pacific in 2013. Retailers

Japan and Hong Kong entered

from Italy (47), the United Kingdom

several new markets while Korean and

(40) and France (37) were also very active,

particularly in the luxury and mid-range fashion sector.

Singaporean retailers were also active.

Japan (24) completed the top five. Among retailers from

retailer COUNTRY OF ORIGIN

rank 2013
UNITED states

rank 2013
italy

rank 2013
SINGAPORE

RETAIL HOTSPOTS IN ASIA PACIFIC

rank 2013
united kingdom

rank 2013
JAPAN

rank 2013
SPAIN

10

rank 2013
canada

rank 2013
hong kong

10

rank 2013
sweden

rank 2013
france

rank 2013
korea

new market entries by retail sector

26%

21%

Luxury and Business

Mid-Range Fashion

16%

14%

9%

Specialist Clothing

Coffee and Restaurants

Value and Denim

8%

5%

1%

0%

Other

Homeware and
Department Store

Supermarket

Consumer
Electronics

Luxury and business retailers accounted for 26% of

Restaurants category also improved its share on

new entrants in the region in 2013, the same figure

a yearly basis but the proportion of new entries by

as in 2012. Mid-range fashion retailers comprised

Value & Denim retailers declined to 8.5% compared

just over 21% of new entrants compared to 18% last

to 11% a year previously. There were no new entrants

year whilst retailers of specialist clothing, particularly

in the consumer electronics sector. Other sectors were

footwear and underwear, accounted for 16% of new

largely unchanged on a yearly basis.

entrants, compared to 12% last year. The Coffee &

RETAIL HOTSPOTS IN ASIA PACIFIC

new retailer entries by sector & city Maturity

60
55

55

50

40

30

27

25

25

Established City

17
15

9
OTHER

21

18
VALUE AND DENIM

SPECIALIST CLOTHING

10

MID-RANGE FASHION

15

19

COFFEE AND RESTAURANT

23
20

SUPERMARKET

30

HOMEWARE AND DEPARTMENT STORE

38

35

LUXURY AND BUSINESS

NUMBER OF NEW MARKET ENTRIES

45

Maturing/Emerging City

Around 70% of new market entries in Asia Pacific were

introduced more sister or secondary brands and also

in emerging markets and 30% in developed markets,

opened stores in secondary cities in China and Japan.

compared to a half/half share in 2012. Luxury &

Value & Denim retailers were active in the same locations

Business Fashion retailers entering the region for the

but new openings in developed markets by retailers in

first time continued to opt for Hong Kong or Tokyo as

this category declined compared to the previous year.

the location for their first store. In comparison, groups

More retailers planning entry to new markets were

already established in Asia Pacific focused on expansion

forced to wait for the right space to become available

in emerging cities. Seoul and Taipei were the subject

due to the lack of supply in prime areas. Others opted

of increasing interest but the spotlight remained on

to make their debut in other cities. Retailers in the Coffee

emerging locations in China, India and Southeast Asia.

& Restaurants category continued to expand over the

course of the year. However, Asian groups tended to

Mid-Range Fashion and Specialist Clothing retailers,

focus on developed markets whilst emerging locations

in particular footwear and underwear, were active in

saw more activity by retailers from the Americas.

in Greater China and North Asia. Fast fashion labels

RETAIL HOTSPOTS IN ASIA PACIFIC

Outlook
The outlook for the Asia Pacific economy remains relatively positive. Domestic consumption is solid in most parts
of the region and consumer sentiment remains healthy, albeit clouded to a certain extent by economic uncertainty
in the United States and Eurozone. Retail sales are expected to continue to see positive growth in 2014 but at a
slower rate compared to 2013.
Retailers already established in the region, particularly those in the Mid-Range Fashion category, will continue
to focus on emerging markets in Southeast Asia including Indonesia, Thailand, the Philippines and Vietnam for
new market entry and expansion given continued growth in domestic consumption and the rising middle class
populations. Taiwan and Australia will also be a major focus. Groups new to the region will continue to prefer
Hong Kong, Singapore and Tokyo as their first port of call, although the lack of new prime retail supply will continue
to inhibit leasing activity to a certain extent. India will continue to see some activity although the rate of entry could
be slowed by complications surrounding new legislation regarding foreign direct investment in multi-brand retail.

RETAIL HOTSPOTS IN ASIA PACIFIC

contacts
ASIA PACIFIC RESEARCH CONTACTS
Nick Axford
Global Head of Research
T: +852 2820 8198
E: nick.axford@cbre.com.hk

Jonathan Hsu
Director, Asia Pacific
T: +852 2820 2957
E: jonathan.hsu@cbre.com.hk

Liz Hung
Manager, Asia Pacific
T: +852 2820 6557
E: liz.hung@cbre.com.hk

ASIA PACIFIC RETAIL CONTACTS

Asia

Australia & New Zealand

Sebastian Skiff
Executive Director
Retail, Asia
T: +852 6335 2023
+86 156 260 79333
E: sebastian.skiff@cbre.com.cn

Alistair Palmer
National Director
Retail Services
T: +61 2 9333 3396
E: alistair.palmer@cbre.com.au

COUNTRY CONTACTS
China

Indonesia*

Hendra Hartono
CEO
PT. Leads Property Services
T: +62 21 2903 5111
E: hendra.hartono@leads-property.com

South Korea

Hsiang-Yun Chu
Senior Director
Retail Services
T: +86 21 2401 1322
E: hsiangyun.chu@cbre.com.cn
Joel Stephen
Director
Retailer Representation
T: +86 21 2401 1375
E: joel.stephen@cbre.com.cn

Japan

Taiwan

Shina Fukui
Senior Associate
Tokyo
T: +81 3 5470 8878
E: shina.fukui@cbre.com.jp

Dories Lu
Associate Director
Retail Services, Taiwan
T: +886 2 7706 9526
E: dories.lu@cbre.com

Yuki Nakamura
Analyst
T: +81 3 5470 8436
E: yuki.nakamura@cbre.co.jp

Thailand*

Kenith Kong
Director
Retail Services
T: +86 10 8588 0706
E: kenith.kong@cbre.com.cn

Hong Kong
Joe Lin
Executive Director
Retail Services
T: +852 2820 2860
E: joe.lin@cbre.com.hk
Neil Howard
Associate Director
Hong Kong
T: +852 2820 1437
E: neil.howard@cbre.com.hk

India

Vivek Kaul
Head of Retail Services
India
T: +91 12 4465 9856
E: vivek.kaul@cbre.co.in

Malaysia*
Allan Soo
Managing Director
Malaysia
T: +603 2092 5955
E: allan.soo@cbre.com.my

Philippines*
Joanie L. Mitchell
Director
T: +632 752 2580
E: joanie.mitchell@cbre.com.ph

Aiden Hwang
Associate Director
Retailer Representation
T: +82 2 2170 5866
E: aiden.hwang@cbrekorea.com

Jariya Thumtrongkitkul
Senior Manager
Retail and Industrial Services, Thailand
T: +66 2 654 1111 ext. 221
E: jariya.thumtrongkitkul@cbre.co.th

Vietnam & Cambodia*

Richard Leech
Senior Director
Retail Services
T: +84 4 2220 0220
E: richard.leech@cbre.com

Singapore
Letty Lee
Director
Retail Services
T: +65 6326 1230
E: letty.lee@cbre.com.sg

*Part of the CBRE Affiliate Network

2013, CBRE, Group Inc. CBRE Limited confirms that information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not
doubt their accuracy, we have not verified them and make no guarantee, warranty or representation about them. It is your responsibility to confirm independently their accuracy and
completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written
permission of CBRE.