Rise continues for luxury retailers in top markets
Print Edition
LUXURY retail continues to post strong growth in top global markets and prime Asian cities amid rising consumer confidence as well as sizable gain in income of the highest earners, according to a latest global retail report released by Colliers International.
“Our analysis of the global retail real estate environment reveals what we have been seeing this year — a retail market that is cautiously optimistic and steadily growing in many sectors despite some hiccups of caution due to threats to global economic growth and the shadow of e-commerce,” noted Anjee Solanki, national director of retail services, USA, Colliers International. “Luxury, in particular, serves as a major spark to the expansion we are seeing, and this is even in regions such as Europe and Asia with weak GDP growth and consumer spending.”
According to Colliers, which tracks 125 retail real estate markets in 50 countries across the globe in the report, the global retail outlook is generally positive, underpinned by the economic recovery in the US and strong job growth in many parts of the world. Although optimism among traditional retailers is tempered by the threat posed by e-commerce, most major cities are recording increased absorption and an influx of global retailers. As the memory of the global financial crisis fades, consumer confidence is rising, with improvements recorded in 52 percent of the markets covered by Nielsen’s Q2 Global Consumer Confidence Survey. The Asia-Pacific region accounted for six of the top 11 countries in the survey, with India recording the highest mark.
With the lion’s share of income gains going to high earners, luxury retailers are thriving throughout many of the top global markets including Paris, London, New York and prime cities in Asia. Brands that are rapidly expanding include Netherlands-based Scotch & Soda, Sweden-based H&M and US-based Michael Kors. Scotch & Soda is expanding its online operations and opening new stores in Europe and Asia, H&M is adding 375 stores worldwide and Michael Kors added 100 stores over the past year, created shops-in-shops and revamped its website.
The expansions are an impetus for new supply, although most is concentrated in developing countries in Europe, the Middle East and Asia that have economic growth, political stability, a growing middle class and a business-friendly regulatory environment. For example, the world’s largest mall — the Mall of the World — will begin construction in the first quarter of next year in Dubai.
E-commerce affects both traditional and luxury retailers in all corners of the globe, forcing merchants to become more creative in their use of space, the report said. One strategy is to use stores as a showroom for products by creating an “experiential shopping” environment, which is an attempt to draw more foot traffic and increase online sales.
The challenge for retailers is to build a balanced approach between a more robust e-commerce presence and well-located physical store space, allowing the consumer to choose which medium they will use for purchases. The end goal is to be “everywhere” on a 24/7 basis to increase convenience for customers.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
