Asia Pacific’s retail recovery continues as business prospects improve and old travel patterns reemerge. Luxury leasing momentum is being driven by the need to provide more immersive experiences in increasingly exclusive spaces targeting loyal VIPs and a quest for unique venues which are able to encapsulate the ethos of the brand.
A new playbook for growth amidst challenges
ASIA PACIFIC RETAIL MARKET CONTINUES TO RECOVER ALBEIT AT AN UNEVEN PACE
As the year progresses, the retail landscape in the Asia Pacific region shows a mixed pattern of recovery, characterised by growth potential coupled with resilience and transformation. Despite facing global economic headwinds, the region’s real GDP growth is forecast to reach 4.1% YoY, markedly outpacing the more subdued growth predicted for the US (2.5%) and Eurozone (0.8%), driven by developing markets such as China, India, and ASEAN markets.
Inflation across most retail markets in the region has moderated, with many rates now falling within or close to target ranges. However, while both interest rates and policy rates have stabilised over the year, this has not fully translated into consumer confidence in some markets, particularly in China, where concerns about debt levels and business prospects are weighing heavily on sentiment.