Industry News

Meet four types of APAC consumers driving physical retail’s comeback

With the last of Asian markets opening up borders and lifting pandemic measures, the region is set to embrace a return to normalcy. And while economies in the US and Europe fend off a recession, analysts anticipate moderate to strong growth in Asia.

China accounts for close to 30% of global manufacturing output, an incredible share.

There is no other country that can offer the same scale and production capacity. However, between 2013 and 2022 manufacturing wages in China have doubled to almost USD 8.30 per hour and foreign companies (quietly) reduce their dependence on the Chinese market; be it for strategic, political or ideological reasons

DON’T FORGET ABOUT THE EXPORT OPPORTUNITIES TO THE PHILIPPINES WITH 114 MILLION CONSUMERS

The Philippine economy will probably keep growing near +7% this year, according to President Ferdinand Marcos Jr, who struck an optimistic tone that the nation expect to produce, what could be the fastest expansion in Asia.

CHINA’s TOP APPAREL TREND FOR 2023:

Outdoor activities were huge in 2022, when Covid had a high impact especially in China - and the trend isn’t slowing down anytime soon. No matter the season, China’s outdoor enthusiasm are finding ways to be active and enjoy the nature. Activities such as camping and skiing continue to see a surge in popularity in 2023

Luxury brands will continue to focus on China as economy improves

GlobalData said it forecasts that China’s luxury retail market will grow by 6.1 percent and 6 percent in 2023 and 2024, respectively. Disruptions caused by Covid-19 and China’s stringent measures against the pandemic kept consumers away from stores in 2022, some of which had to close temporarily or operate on shorter opening hours due to staff shortages.

HIGH LEVEL UPDATE ON 7 KEY ASIAN RETAIL MARKETS IN 2022 - AND WHAT'S AHEAD IN 2023

Looking back at rather shaky 2022 in retail, this article is rounding up the overall performance of seven key Asian retail markets, including Malaysia, Hong Kong, South Korea, Mainland China, Singapore, Japan and Thailand, as well as overall outlooks in the year ahead.

LOUNGEWEAR IS THE NEW WORKWEAR TREND IN CHINA - BUSINESS OPPORTUNITY

Over the past two years of living between “snap lockdowns” and the new normal. Chinese consumers have learned to prepare for unexpected quarantines that might take place anywhere, anytime. Meanwhile, the spheres of home and workspaces have begun overlapping, shifting loungewear from “indoor” to outdoor use.

China’s New Outdoor Sports Initiatives Create Growth Opportunities For Brands

With the exception of winter sports, which skyrocketed in popularity during the 2022 Beijing Winter Olympics, China’s outdoor lifestyle trend has been mostly fueled by demand from younger Chinese consumers.

Newsletter from AsiaCorp: Preparing for the upcoming holidays

Below please find our Q42022 Newsletter. We look forward to 2023 and wish you and your family happy holidays and a fantastic New Year.

Another year has (almost) gone, and we at AsiaCorp want to say thank you to all our clients and business partners for great cooperation.

Happy New Year

And just a gentle reminder: Don't forget about looking at the Asian markets, which counts for 60% of the world's consumers...! In 2022, there are 8 billion people in the world today. But what if we reduce the Earth to a village of 100 people? 58 out of 100 are Asian, 19 are African, 12 are North and South American, 10 are European, The other 1 is from Oceania.

China to make up 40% of luxury consumers by 2030

Even as economic conditions worsen, the global luxury market marches on. A recent study released by Bain & Co. and Altagamma projects that the industry will reach $1.4 trillion in sales revenue this year, growing 21 percent from 2021. Despite high inflation and rising costs of living, as well as ongoing COVID-19 restrictions, some 95 percent of luxury brands reported positive growth in 2022

Newsletter from AsiaCorp: A rising popularity in outdoor sports are creating a new market in China

The rise in outdoor sports is creating a new market for brands in China. The support from the Chinese public soctor ensures investments in new facilities and infrastructure, while the trend encourages the public need for new equipment.

The Vietnamese GDP grew by 8.02% in 2022, which fastest expansion in 25 years!

Don't forget to strongly consider Vietnam, when looking to expand your apparel/leisure/fashion brand into Asia. GDP growth in the fourth quarter was 5.92%, slowing from an expansion of 13.71% in the third quarter.

Consumer trends in APAC for the rest of 2022

Asia Pacific (APAC) markets have been looking beyond the pandemic to focus on post-Covid-19 growth. Although geographically distant, the APAC region is not immune to soaring commodity prices and supply chain disruptions driven mostly by the war in Ukraine. Rising inflation and rising prices have also impacted consumer behaviour in Asia.

What Chinese individualism means for luxury brands

The rise of individualism in the mainland is a movement that may not be entirely consistent with western narratives but is redefining the expression of self-image. It is a game changer that could potentially transform the future of the luxury industry in China.

Starbucks opens its 6,000th store in China

Starbucks can celebrate its 6,000th store in Mainland China with a new store at Shanghai Lippo Plaze. This also marks the 1,000th Starbucks store in the city. Starbucks expects to operate 9,000 stores across 300 cities in China by 2025.

Singapore overtakes Hong Kong in world financial centers ranking

Singapore has overtaken Hong Kong and become the top financial center in Asia. Not only is it the top financial center in Asia, it’s also the third in the world only surpassed by New York and London.

Third-party marketplace sales to account for 59% of all global ecommerce by 2027

By 2027, the four largest global marketplace leaders – Alibaba Group, Amazon, Pinduoduo and JD.COM – will account for $4.3trn in global retail sales, almost...

Singapore retail sales continue to recover

Singapore retail sales continued their rebound – and is ready for growing your lifestyle brand again! The fastest-growing category was apparel and footwear which surged 68% and sales of watches and jewellery increased by between 42% and 53%.

Malaysian retail sales set new record

Malaysia’s retail sales saw recorded growth in the second quarter of this year, surging 62.5 per cent year on year, according to Retail Group Malaysia (RGM).

Dunhill opens two new stores in South Korea

The new stores are situated within Lotte department stores in the Seoul district of Jamsil and Southern city of Busan, continuing the brand’s expansion strategy in Asia and paving the way for a third store opening in spring next year.

How China is fueling the growth of beauty brands and boosting luxury players

China has quickly gained on the United States in beauty sales, and is set to overtake it by 2023.

Harvey Nichols flagship reopens at Pacific Place

The Harvey Nichols flagship at Pacific Place has reopened after a three-month refurbishment, adopting a new store model which takes up just half the space of the original store.

Lazada launches RedMart on its mobile app

With RedMart has officially completed its move to the Lazada platform on 15 March, and customers can now enjoy a one-stop solution for all their shopping needs.

L’Occitane profit soars after restructure

Hong Kong-listed beauty-products retailer L’Occitane is reaping the benefits of a restructure with profit up 21.8 percent last financial year to €117.6 million.

Lego opens first Australia flagship store in Sydney

Located at Sydney’s Westfield Bondi Junction shopping mall, the two-story Lego store will serve as the company’s first standalone store in the Australian retail landscape, according to local media reports.

Millionaires are showing off their money in a new way

The definition of luxury is evolving, and the change applies to not only what people are spending money on, but how they’re doing it.

L’Oréal Paris chooses Thailand for its biggest flagship store worldwide

L’Oréal Paris revamps its store at the Bangkok King Power Downtown II Srivaree, making it its first flagship store in Travel Retail Worldwide.

Chloé opens flagship store in Seoul

Chloé unveiled a new 386-square-meter, two-story boutique in the lively luxury shopping district of Cheongdam in Seoul. The eye-catching façade, consists of beige marble stones and the maison’s logo in brass is luminous by day and lit-up at night.

Nike sees strong growth in Asia

Sportswear retailer Nike has grown net income to US$1.1 billion over its third quarter, with the group’s consumer-direct approach delivering growth across all four of its geographic regions.

Top 6 business challenges to consider before entering Asian markets

Between the Asian and Western (US and Europe) markets, the latter was once considered the more lucrative option of the two whereas the former was dubbed as slow-paced and laggard. But this concept has changed dramatically over the past decade.

LVMH achieves record result, with profit up 21 per cent

The world’s largest luxury retailer LVMH shrugged off broader market pessimism overnight reporting record revenue of €46.8 billion last year, up 10 per cent over 2017. Excluding the closure of the unprofitable Hong Kong airport duty-free business in December 2017, the group’s organic growth was 12 per cent. Every business division delivered what the company described as “excellent performances”.

L’Oréal Generates 120M Social Media Interactions with Haitang Bay Pop-up Launch

L’Oréal Paris has generated over 120 million interactions on Chinese social media since launching a striking pop-up at China Duty-Free Group’s (CDFG) Haitang Bay Sanya International Duty-Free Shopping Complex.

Central Retail plans to double online sales

Central Retail Corporation has announced plans to to double its online sales to THB10 billion (US$315.76 million) this year. Central’s CEO Nicolo Galante said the firm intends to lead in the omni-channel e-commerce business, overtaking Shopee.

Vietnam retail sales soar

Vietnam retail sales grew at 13 per cent last year, with food and beverage, apparel and household appliances leading the way, according to Savills Vietnam. The country’s Ministry of Industry and Trade has estimated total revenue generated from retail sales and consumer services reached US$191 billion last year.

Korean department store sales lift on strong e-commerce

South Korea department store retail sales recorded an increase in September 2017 on the back of strong online sales, a government report showed. The Asian nation’s major retailers registered an increase of 8.4 percent in September from a year earlier, according to the Ministry of Trade, Industry and Energy.

Prada’s sales surge on rapid greater China growth

Asia has once again energised luxury fashion label Prada’s sales in the first half year. The company has reported net revenue up 9.4 per cent in the six months to June 30 (although a lesser 3.3 per cent at current exchange rates). However Prada Asia-Pacific sales surged 13.8 per cent at constant exchange rates, or 6.6 per cent at current rates, most of that growth coming from company-owned stores.

Singles’ Day trumps Black Friday and Cyber Monday combined

Alibaba, the Chinese e-commerce giant, said on 11 November 2017 its Singles’ Day sales extravaganza hit $25.4 billion, smashing its own record from last year and cementing it as the world’s biggest shopping event. Once a celebration for China’s lonely hearts, Singles’ Day has become an annual 24-hour buying frenzy that exceeds the combined sales for Black Friday and Cyber Monday in the United States, and acts as a barometer for China’s consumers.

Why Brands Shouldn’t Treat the Hong Kong and Mainland Markets the Same

Brands often talk about marketing in Greater China. However, considering the strong cultural differences in the different markets that constitute Greater China, which includes China, Hong Kong, Macau, and Taiwan, firms can run into issues of being politically or culturally deaf. These kinds of missteps can lead to long-term damage to a brand and its marketing efforts.

Singapore m-commerce set for 33 per cent growth

Singapore m-commerce is set for 33 per cent growth in the next five years, according to a new report. Despite its modest population numbers, the city/state is the region’s third-largest e-commerce market with 73 per cent of internet users already shopping online. But this growth is set to slow with a modest 9 per cent expansion to reach US$6.5 billion by 2021 predicts Worldpay, which analysed e-commerce spending patterns across 36 markets on five continents.

THE RISE OF LUXURY JEWELRY WITH CHINESE MILLENNIAS

From changing cultural mindsets and innovative designs to forward-thinking digital promotional strategies and price adjustments, the scene has been set for luxury jewelry brands to thrive in the Chinese market – especially with female millennials.

Chinese retail sales rise more than 10 per cent

Total Chinese retail sales last month reached RMB2.961 trillion (US$443.7 billion), a year-on-year rise of 10.4 per cent, reports the National Bureau of Statistics.

Double-digit growth in daily retail sales in China over National Day ‘Golden Week’

China’s daily retail sales during the country’s “Golden Week” holiday that ended on Sunday rose at a double-digit pace, on a par with growth during the same break last year, data from the commerce ministry showed.

CHINA’S WEALTHY ARE SPENDING A QUARTER OF THEIR BUDGET ON HEALTH AND ATHLEISURE

As average Chinese families get wealthier, they seek more from their luxury consumption than the mere ability to show off. As the face of luxury and fashion continues to change, luxury brands need to remain attuned to these fluctuations in order to stand apart from their numerous competitors in China.

CHINA’S ‘WANNEBE CONSUMERS’ WILL GROW THE FASTEST BY 2020, SAYS BAIN REPORT

The start of this year marked a major shift in China’s luxury market. Chinese consumers are now spending more on high-end products domestically and their attitudes are also evolving, fueled by digitization, over-exposure to luxury, a changing economy, and changing demographics.

Alibaba Unveils Exclusive Luxury Pavilion Courting Super-Wealthy Chinese Shoppers

Chinese e-commerce giant Alibaba Group today launched the Luxury Pavilion, a brand new section within its business-to-consumer site Tmall for premium and luxury brands. The initiative is part of a broader bid, according to Alibaba’s news site Alizia, to push forward its New Retail initiative in the luxury arena to reach out to the country’s super wealthy online shoppers.

Korean online shopping growth surge as retail sales stumble

Online shopping is experiencing a growth surge, accounting for close to 20 percent of all retail sales in the first quarter of this year.

PARTNERING WITH CHINA’S RETAILERS: A GUIDE FOR CONSUMER-GOODS COMPANIES

The Chinese consumer sector looks vastly different today compared with just five years ago. The retail environment both offline and online has shifted, consumers have become savvier omnichannel shoppers, and local consumer-packaged-goods (CPG) manufacturers are giving global players a run for their money

3000 stores to open in India, world’s most promising retail market

The recent implementation of the GST along with the rise of e-commerce has caused over 50 brands to announce that they will launch in India in the next six months.

CHINA WILL REPRESENT ABOUT 60 PERCENT OF ALL GLOBAL E-COMMERCE TRANSACTIONS BY 2020.

Today, an increasing number of foreign brands in China are beginning to recognise the power of China’s millennials in determining the future of their businesses, and major luxury players, such as Burberry, Cartier, and Gucci, among others, have all recently made bold efforts to attract this demographic. Chinese millennials matter to luxury brands because of their large population and massive purchasing power.

VIETNAM’S RETAIL SALES LEAP TO US$118 BILLION

The General Statistics Office has estimated Vietnam’s 2016 retail revenue at US$118 billion, a 10.2% rise over the previous year.This revenue growth rate was relatively high compared to other markets in the region. Notably, food and foodstuff sales increased by 13%, followed by household appliances with 11.4% and textiles and garments with 10.6%.

E-COMMERCE IN JAPAN: 20% OF RETAIL BY 2022

While the U.S. and China are already known as global e-commerce markets, it’s Japan that boasts the largest e-commerce potential, especially over the next three to five years, say two separate consultant groups. In 2015, Japan generated roughly $80 billion in e-commerce sales. This compares to some $350 billion of e-commerce sales in the U.S. and China’s whopping e-commerce sales result, which exceeded $650 billion in 2015.

BE FLEXIBLE, BUILD TRUST FOR SUCCESSFUL ASIAN MARKET EXPANSION

NEW YORK – When entering a new market, the biggest mistake brands can make is failing to alter their marketing strategy for any cultural differences, according to an executive from Export Now.

INDONESIA LEADING CHARGE, SAYS ASIA LUXURY INDEX

Indonesians have become Asia’s foremost online buyers of luxury goods, according to th latest Asia Luxury Index.Amid difficult economic conditions, online sales of luxury goods in Indonesia have grown by 84 per cent, according to the index, which draws mainly on the sales data of Reebonz, a Singapore-based eCommerce platform for luxury products.

THE RETAIL WINNERS AND LOSERS OF 2016

Some retailers spent the year readying for the industry’s future, while others grappled with the ghosts of its past. Here are the companies, technologies and trends that soared or sank in 2016.

ASIAN GROCERY BOOM PREDICTED BY IGD

Asia will continue to be the biggest engine of growth in the grocery market with its sales set to exceed those of Europe and North America combined within five years, according to new forecasts from research organisation IGD.

SOUTH EAST ASIA: THE NEXT WAVE OF LUXURY?

Southeast Asia represents the next big hotspot for premiumisation in Asia. As the region accelerates through this cycle of spreading consumer prosperity, it is predicted that the number of middle-income consumers will increase from 190 million in 2012 to 410 million in 2020.

THE EVOLUTION OF E-COMMERCE BUSINESS MODELS IN SOUTHEAST ASIA

Being the new kid on the block means that e-commerce ventures in Southeast Asia have the luxury to learn from others’ mistakes, from mature e-commerce markets such as the US and China.

CHANGING RETAIL TRENDS: WHERE WILL INDIA BE IN 2030?

The rising number of online shoppers, developing infrastructure and affordable technology will prove to be a boon for this industry, says a report by Goldman Sachs. The report also mentions tremendous growth amounting to about 2.5 per cent of the nation’s GDP that would be almost 15 times growth for this buzzing online industry.

ASIA’S TOP 5 ECONOMIES IN 2030

Remember when Japan was set to become the world’s top economy? The risks of such forecasts have been highlighted by this and other fearless predictions, including more recently that China would continue its double-digit growth rate forever and that India would quickly become the “new China.”

INDONESIA IS ASEAN ECOMMERCE SLEEPING GIANT

Indonesia is the most-promising ASEAN eCommerce market, according to Hong Kong-based consultant Paul McKenzie. He told a seminar in Bangkok, organised by brokerage and investment group CLSA, that Indonesia has the greatest potential because of its developing infrastructure and private equity advantage. Thailand is a little behind, he said, with the eCommerce landscape growing but not to the same scale as Indonesia.

BRANDS THAT CAN ONLY BE PURCHASED ONLINE WILL SEE STRONG GROWTH IN FUTURE

‘Digital-first’ brands, or brands that can only be purchased online, can expect to see strong growth across categories like budget fashion, furniture and groceries with the increasing adoption of e-commerce, a study said.

WORLDWIDE E-COMMERCE MARKETS

China is the biggest eCommerce market in the world with $562.66B in sales projected for 2015. Factors like population contribute to their top slot. Case in point, China has more than 600 million internet users. And this is important if you are an eCommerce shop owner. Shopping is the fastest growing online activity in China. Exciting news when considering different types of marketing campaigns targeted at your Chinese customers.

CHINESE LUXURY SHOPPERS INCREASINGLY TURNING ONLINE: KPMG

For Chinese, online shops are quickly evolving from simply a means to get a bargain to somewhere movers and shakers can splash out on pricey clothes and accessories. According to a study published by auditor KPMG earlier this week, Chinese buyers of luxury items are increasingly favoring online retailers over brick-and-mortar stores, which will account for half of Chinese luxury spending by 2020.

ASIA LUXURY RETAIL REVIVAL AHEAD

While Asia Pacific may be experiencing a slowdown in luxury retailing right now, three key trends will fuel a renaissance in coming years.

HERE’S WHY SINGAPORE IS A SHINING BEACON IN LUXURY ASIA

Singapore is the key regional hub for Luxury in ASEAN, and a top hub in Asia-Pacific, with a market size in 2013 of €2.5 billion (ca. S$4.3 billion) compared to the ASEAN market size of €5.5 billion, and the Greater China market size of €27.4 billion which includes China, Hong Kong, Taiwan and Macau. – And Singapore incidentally ranks 5th in the 5 largest destination countries by value of tax free shopping value after France, Italy, UK, and Germany.

AUSTRALIAN LUXURY RETAIL GROWING BY 9.8PC

Luxury retailing in Australia is projected to be a $2.4 billion industry by 2019-20, according to a new report by IBISWorld. IBISWorld’s “Luxury Retailing in Australia” report says the country’s relatively stable economy has given its residents more disposable income, leading to more luxury purchases. Due to Australia’s favorable market for luxury goods, many brands have aggressively expanded their operations in the region.