Retail evolution: The Asia Pacific region adapts to a new retail age
The exponential growth of e-commerce globally is creating structural challenges for the retail sector, and this is affecting the Asia Pacific market, as it does the Western world. Region-specific macro fundamentals, however, support the continued demand for physical retail in Asia Pacific. Furthermore, changing shopping behaviour and expectations are forcing an evolution of the retail offering. Consequently, landlords are now focused on building resilient assets, including the introduction of more experiential elements, that will enable them to maintain and grow market share. Asia Pacific consumer needs are similar but nuanced when compared with those of Western consumers, particularly regarding the “social” requirements of retail. A better understanding of changing consumer behaviours, as well as considered analysis of market fundamentals, will help to differentiate the winners and losers in the retail sector.
Macro fundamentals underpin a healthy consumer market