The Asia Pacific region is expected to be at the forefront of global economic growth in the 21th century. Its major cities have historically been the principle drivers and locations for retail investment, however across certain countries, most evidently China, there is a growing shift of activity towards smaller urban regions thanks to rising incomes and improving standards of living. Still, this is not a uniform trend as other markets in the region are still more dependent on their major cities
You have no recently viewed reports.
Why not browse through our Featured or Trending Reports to see what we have to offer?
China is by far the largest retail market, though India is one of the fastest growing globally. Rising consumer affluence, reforms and broadband internet uptake are some of the major reasons underpinning this trend, making this a highly sought after market, given the stagnating performance of Western European countries.
In terms of developing countries in the Asia Pacific region, China, dominates the market for secondary cities with 41 cities in 2016 having consumer markets of USD10-50 billion in total disposable income. As well as having sufficiently large consumer markets, Passport Cities data also showed that a number of secondary Chinese cities are displaying robust economic growth and boast household disposable income that can be equated to some primary cities such as Tianjin and Shenzhen.
Secondary city development in India is less pronounced compared to that in China. As of 2016, there were only seven cities with consumer markets of USD10-50 billion. However, with India expected to be one of the frontrunners in economic growth globally, the potential for lucrative retail opportunities in its secondary cities is expected in the medium term.
In other developing Asian countries, secondary city development is rather limited. This is largely due to the predominance of primate cities (disproportionately larger than any other city) which continue to house the largest share of wealthy households and absorb the largest share of investment. For example in Thailand, Bangkok’s consumer market is 13 times the size that of the next largest city.