China remains “all the rage” for retailers, especially Asian retailers.
Fifty-eight percent of Asia Pacific-based retailers are targeting the Chinese market, according to a recent study by property consultant CBRE, making it the ‘most sought after’ market for Asian retailers.
With 23.4 trillion-yuan retail market that is expected to continue to expand into 2014, and the government’s plan to double household income by 2020, it’s no surprise that China displays some of the highest consumer sentiment in the world.
China also has the attention of global retailers, ranking as the fifth most popular destination for expansion with 22 percent of retailers surveyed targeting the market in 2014.
“China is currently a very exciting place to be as a retailer so it comes as no surprise that China is ranked fifth in retailers’ target markets for 2014. Globally speaking, the Chinese consumer accounts for a significant proportion of many retailers’ sales, whether they are registering those sales through their stores in China or London, New York, Paris or elsewhere. Having a strong presence in China is an important strategy to drive sales across a brand’s global locations, not just within China itself,” said CBRE retail’s executive director, Sebastian Skiff.
“Having a strong presence in China is an important strategy to drive sales across a brand’s global locations, not just within China itself.”
“Most retailers active within Asia Pacific have tended to focus operations within a few countries, and locations are generally limited to the key or top tier cities where quality retail space is accessible. Tougher trading conditions in most markets have tempered expansion ambitions for the short term, however, over the longer term we expect economic growth and the rising middle class in Asia to spur further growth,” reports InsideRetail.Asia.
We are beginning to see a few Asia-based brands moving toward global expansion. China is starting to extend its brand influence overseas. The Chinese brand Bosideng recently opened a store on London’s Oxford St., and other brands are eyeing Australia and New York as potential new markets.
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