Five Key Growth Trends for Retailing in Asia Pacific

Changing consumers require different tactics

Consumers in Asia are undergoing four major transformations: urbanisation, more single households, ageing and increasing wealth. Retailers must adapt to these changes to remain relevant.

China and India are the strongest growth markets

India and China combined will account for 68% of absolute growth in retail sales in Asia Pacific between 2012 and 2017. Most of the retail channels in these countries will grow. These countries allow for unparalleled opportunities in the region for retailers.

Emerging markets are embracing modern grocery

While traditional grocery remains strong in emerging Asian economies, more consumers are turning to modern formats, especially forecourt retail and convenience stores.

Fashion retail is transforming

Shoppers are becoming more comfortable with buying fashion online –slightly more than 20% of fashion is sold online in Asia –but they are spending more in sporting goods stores to try on and learn about performance products. Consumers are also embracing fast fashion retailers for their affordable styles.

The power of digital is undeniable

Digital commerce will continue to gain share in retailing in Asia. However, the digital landscape differs by country. South Korea and China will lead the way, with the highest penetration rates for digital commerce, followed by Taiwan, India and Japan. Emerging markets will be a distant third.