Thailand has been ranked sixth by Asia-Pacific retailers who are keen on expansion in the region, according to global research from CBRE.
The How Active Are Retailers Globally? survey revealed Asia-Pacific-based retailers see significant potential close to home, and all of their top ten target destinations for expansion this year are within the region.
Thailand was ranked sixth in Asia and was a target for 29 percent of Asia-Pacific-based retailers, while China is the most sought-after market (58 percent), followed by Vietnam (48 percent), Malaysia (42 percent), Indonesia (39 percent) and Singapore (35 percent). Globally Thailand was in equal 28th position as a target for global retailers.
Sebastian Skiff, Executive Director of CBRE Retail, said: “The relatively lower levels of interest by Asia-Pacific retailers in expanding in American and European markets reflect a cautious attitude to expanding out of their core markets, but that said we are beginning to see a number of Asia-based brands working on strategies for global markets. For example, Chinese brand Bosideng opening on Oxford Street in London and a number of other Chinese brands looking to launch New York and Australia,”
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Around 14 million sqm of new retail space is currently under construction in Asia-Pacific. Half of the new supply is in China, mostly in Shenzhen and Guangzhou. The bulk of the remainder is in Southeast Asian markets including Bangkok and Kuala Lumpur.
James Pitchon, Executive Director, Head of CBRE Research and Consulting in Thailand, said: “In Q4 2013, four new retail projects opened in Bangkok providing around 40,000 sqm of new space. The total retail supply in Bangkok at the end of 2013 stood at 6.32 million sqm, consisting of shopping malls, which shared 61 percent of the total market and can be categorized into three main types; community mall, enclosed mall and on-site retail facilities,”
The report found that retailers globally are predominantly targeting countries with mature retail sectors, although a number of emerging markets in Asia-Pacific also feature strongly. Retailers originating from Europe have shown a strong bias towards their own region with less than 15 percent of retailers targeting markets outside the region. Retailers from the Americas are biased towards the US, but are also targeting European markets, and in particular Germany.
China leads the way for Asia Pacific, ranking as the fifth most popular destination for global retailers, with 22 percent of surveyed retailers targeting the market in 2014. The importance of China globally cannot be underestimated, in part because of the impact having a presence there has on sales in other regions.
In Thailand, “International brands which expanded their business lines in the Thai market in Q4 2013 include Sephora and Victoria’s Secret Beauty & Accessories at Siam Center, Pull & Bear at Siam Center, Brioni’s first store at Gaysorn Plaza. Mid-range fashion brand openings included Carhartt, Pedro, and Kenneth Cole at CentralWorld Plaza,” said Jariya Thumtrongkitkul, Senior Manager of Retail Services at CBRE Thailand.
Andrew Batt, International Group Editor of PropertyGuru Group,
wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
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