Hong Kong Remains Attractive Retail Destination for New Entrants
Hong Kong, May 20, 2015 – Hong Kong ranked high amongst most targeted retail markets globally in 2014, according to the latest report by property advisor CBRE - How Global is the Business of Retail?
Despite the sluggish retail sentiment in the city, Hong Kong remains one of the most important retail markets for international retailers. In 2014, Hong Kong ranked seventh for largest number of new market entrants, with 45 new brands opening retails outlets. Amongst other Asian cities, Tokyo came first with 63 new market entrants, and Singapore followed with 58. Taipei came in fourth. Other cities in the region which made the top fifteen markets included Beijing with 34, and Manila with 24.
“Hong Kong continues to attract increasing numbers of new international brands and remains one of the most important retail markets in the region. More international retailers are deciding to locate their first Asia store in Hong Kong. Currently we have clients from Japan, Korea, UK and Russia actively looking for new space to start their business in Hong Kong,” said Joe Lin, Executive Director, Retail Services, CBRE Hong Kong.
Hong Kong also continued to see an active expansion of mid-range brands, with some overseas food and beverage operators, in particular, entering the market. “Retailers of new dining concepts have shown great interest in opening new shops in Hong Kong to take advantage of the growing expenditure of local consumers amid the positive consumption market,” commented Lin.
Overall, Tokyo ranked the world’s hottest city for new retailer expansion, attracting 63 new retail brands. Space in core areas of Tokyo remained highly sought after despite the mixed signals in the economy and an increase in sales tax of 8% introduced in April 2014.
London has retained its position as the world’s most international shopping destination with 57.9% of international retailers present there. London was closely followed by Dubai with 55.7% of international retailers present, and Shanghai with 53.4%.
Jonathan Hsu, Head of Occupier Markets Research, CBRE Asia Pacific said, “The continued desire for expansion into new cities remains high for international brands. We are seeing a great deal of expansion into Asia and in particular into Tokyo, Singapore and Taipei.”
Tokyo’s domestic demand is expected to strengthen by the number of tourists the local government has pledged to attract by 2020, however, overseas brands will continue to expand to exploit the growing consumption in this market. Elsewhere, in Singapore, food and beverage operators were most active whilst Taipei has become a hotspot for Japanese and Korean fashion and cosmetics brands.”
Globally, mid-range fashion retailers remained the most active sector, accounting for 21% of international expansion, followed by Luxury and Business retailers with 20%. Expansion into the Asia Pacific region was dominated by Luxury & Business retailers accounting for 24% of activity, followed by Coffee and Restaurant retailers with 22%. Retailers from Asia Pacific still see substantial growth within its own region with a majority 79% of retailers continuing to target their own region for expansion; 41% of American retailers will also focus on the Asia region.
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
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