Track2Realty: New Delhi witnessed the entry of 13 prominent global retailers in 2012 as compared to 27 in Singapore and 51 in Hong Kong, according to CBRE’s new Retail Hotspots in Asia Pacific report. Hong Kong, Japan and Singapore top the list of cities for new retailer entries across Asia Pacific.
However, New Delhi achieved more entries compared to other South East Asian markets such as Bagko, Kuala Lumpur and Jakarta andhas been characterised as a maturing/emerging retail market in Asia-Pacific, similar to the likes of Beijing, Shanghai and Ho Chi Minh City.
In tracking new store openings by retailers entering a market for the first time, CBRE, the world’s leading commercial real estate services firm, has found that while established locations witness steady expansion, maturing/emerging markets are seeing a steady increase of activity, especially in tier II cities in China and Southeast Asia.
Anshuman Magazine, CMD, CBRE South Asia says, “International retailers from across the globe are slowly but surely looking at India as a mature and viable market to expand their business. With Asia Pacific continuing to lure international and domestic retail chains, India is poised to witness a retail revolution. With the government permitting FDI in multi-brand retail, we can expect more international retailers to seriously consider the growing consumer base here.”
The Indian market as a whole is anticipated to see the number of new retailer entries increase further following the government’s move to permit foreign direct investment in multi-brand retail, which should herald the entry of foreign supermarket chains.
In examining new entrants by sector, ‘luxury and business’ retailers accounted for the highest portion (26%) in Asia Pacific in 2012. This was followed by ‘mid-range’ fashion accounting for 18%, along with ‘specialist clothing’ (13%), ‘coffee and restaurants’ (13%) and ‘value and denim’ (11%). In overall terms, new store openings for mid-range fashion retailers are now expanding at a faster rate compared to their luxury counterparts.
“Given Asia’s young demographics and propensity to use technology to increase fashion knowledge, along with the growing buying power of its emerging middle class, we are seeing an increased demand for mid-range stylish fashion,” said Sebastian Skiff, Executive Director, CBRE Retail Asia. “This represents a significant opportunity for more affordable brands across the region, especially in China.”
EMEA Retailers were collectively the most active in entering new markets in 2012. At a country level, retailers from the United States led the pack with 70 new entries, almost double those of the next best placed country, France (38).
Despite a lack of new prime retail supply in many established markets, new retailer openings, especially from international mid-range,value and denim retailers, are expected to continue at a steady rate across Asia Pacific for 2013.
