Hong Kong, 16 January 2016 -
The outlook for retail sales is projected to grow in 2016, according to forecasts by Colliers International. There are some concerns about the long-term sustainability of some of China’s more ambitious development, but the overall outlook is broadly optimistic.
“We see a relatively narrow retail gene pool of specialty occupiers of shopping centers,” Sebastian Skiff, executive director of retail development and asset management, Asia, says. “Investors in shopping centres can take the opportunity to look at the cycles in mature markets, and to use softening rents as a chance to remix and reposition assets.”
The key drivers for Asian consumers are not just the pure utilitarian acquisition of physical goods, but the desire for experiential retail and the concept of wellness and lifestyle. An example is the blending of female sports and leisurewear around themes of beauty, mindfulness and yoga, by activity-specific brands and mainstream retailers alike.
China should follow other regional markets such as Singapore, Hong Kong, Korea and Japan, where landlords aspire to build portfolio relationships with trusted mid-market F&B quality chains. Colliers believes global mid-market F&B superbrands and Asia-specific F&B superbrands are for the most part underrepresented in China. Therefore, there is significant opportunity for mid-market aspirational global F&B players to increase their Asian portfolios in 2016.