Gerda Lerchner 葛百灵’s Post

Singapore has 6 million people, Hong Kong has 7.4m, both are geographically very small Yet there is a big difference in ecommerce penetration In Singapore it accounts for 40% of retail sales, In Hong Kong it is only around 12%. Why the gap? Singapore’s compact urban layout and 8,000 people per square km density make online shopping a convenient and viable alternative to in-person retail Singapore’s extensive digital infrastructure heavily supported by the government and growing omnichannel retail strategies have made e-commerce a cornerstone of the retail industry Hong Kong has a similarly high urban density (6,600 people per sq km), Hong Kong’s extensive mall culture plays a significant role in shaping shopping behaviours. With major malls like Harbour City and Times Square providing easy access to luxury brands and daily goods, many consumers still prefer the in-person experience. Cross-border shopping is a major factor in Hong Kong's e-commerce environment, with a substantial portion of online spending directed to purchases from mainland China and other international markets This limits the growth of local e-commerce platforms, creating a more complex retail dynamic. Understanding these market nuances is key to crafting effective strategies for retail businesses in the region. Can anyone guess why Hong Kong has a lower urban density than Singapore but feels more cramped and which one has more malls? #Ecommerce #RetailStrategy #HongKong #Singapore #CrossBorderShopping #UrbanDensity #DigitalTransformation

Challenges Facing the Retail Industry in Hong Kong The retail industry is currently grappling with several significant challenges: 1.Transformation of Consumer Behavior: The rise of online shopping has profoundly altered consumer behavior, leading to heightened competition and increased pressure on traditional brick-and-mortar stores. ( excluding of go to China shopping ) 2. Rapid Market Changes and Slow Strategic Response: The retail market and consumer preferences are evolving rapidly. However, many retailers are slow to react, typically lagging behind by six to twelve months.This sluggish response can result in missed opportunities and a loss of competitive edge. 3. Saturations of Shopping Malls: The high density of shopping malls in Hong Kong has led to market saturation. The repetition of products across various malls dilutes the uniqueness and appeal of individual retailers, making it harder for them to differentiate themselves. 4.Outdated Expansion Strategies: Many retailers continue to rely on the old strategy of opening more chain stores to increase market share. This approach may no longer be profitable, especially if retailers are making less than 5% profit. The high operational costs and diminishing returns make this strategy unsustainable in the long term. Retailers experiencing low profitability should consider remodeling their business strategies. To navigate these challenges, the retail industry must accelerate its adaptation to market changes, differentiate its offerings, and implement innovative strategies. Retailers need to move beyond traditional expansion methods and explore new ways to engage customers and improve profitability. By doing so, they can remain competitive in an increasingly digital and dynamic market landscape. #retailbusiness #chainstores

What’s Behind China’s Retail Evolution? Store Closures in Shanghai Tell a Bigger Story For those working in the Chinese retail space or across Asia, you’ve likely noticed significant changes in recent years. Store closures on once-thriving streets like Anfu Road in Shanghai are raising questions. But it’s not just an economic downturn—this shift reveals deeper trends shaping the future of retail in China. 1. The End of ‘Hot Money’ The days of VC-fueled expansion are over. Brands now need to prioritize sustainable growth and profitability to thrive . 2. E-Commerce Leading the Charge China’s e-commerce platforms offer unrivaled convenience, pushing brands to rethink their physical spaces. Many stores are transitioning into experiential hubs to complement their online presence . 3. Experiential Retail Retail districts are evolving into entertainment destinations, with spaces like Hai550 in Shanghai leading the way, blending shopping with lifestyle experiences . 4. Tech-Savvy Consumers Expect More Consumers demand seamless integration across digital and physical channels, leveraging QR codes, live-streams, and loyalty apps to create a rich shopping experience . China’s retail landscape is changing fast—brands that can adapt by delivering unique, connected experiences will stay ahead. #ChinaRetail #Ecommerce #ExperientialRetail #DigitalTransformation #RetailInnovation #AsiaMarkets #RetailStrategy

Japan's Takashimaya eyes 2026 opening for new #Vietnam🇻🇳shopping center Hanoi department store would be first overseas location in 8 years With growth getting harder to come only by in Japan domestic market, the retail company like them are looking to #emergingmarkets, like the #SoutheastAsia in particular to expand its profit base. The emerging markets is being positioned as their biggest growth market due to the country's expanding middle and upper classes, even if it start facing heavy competition there. BUT, still the demand for Japanese product quality will more rise as the standard of living improves there. Items such as food, cosmetics and children's clothing etc. The Japanese company also has invested in the construction and operation of a school in cooperation with a Vietnamese partner, and looks to invest capital in joint real estate development projects there. Usually, strategic combination of businesses and lift their earnings make sense there due to the revenue and profit flows potential. Companies like them and even them around us would be willing to keep exploring projects worth investing in, mainly in Southeast Asia and other top potential emerging markets worldwide🌏

Shopping Centre Upgrading in China - New concepts to change perceptions In 2024, thanks to pricing stability and the implementation of a series of policies to stimulate domestic consumption demand, the scale of China's consumer market continued to expand. Cultural consumption, tourism consumption, digital consumption, green consumption, and health consumption have all seen continued growth. Additionally, new retail models such as “instant” retail, social e-commerce and social customer relationship management are also developing rapidly. Looking ahead to the future, the Chinese retail market still holds enormous potential. Under China's common prosperity programme, middle-income households have been growing in number during the “14th Five-Year Plan” period. Consumer demand from residents is accelerating and will continue to accelerate change in China, along with the gradual growth in their income. Retailers and shopping centre owners in China are constantly innovating and creating new consumption scenarios, new retail segments and new business models, so as to explore and foster fresh consumption growth points. To keep abreast of the latest retail innovation in China, Cushman & Wakefield conducted a survey of 3,866 consumers in 23 cities and counties and in-depth interviews with several retail brand executives and shopping centre operators in China from December 2023 to April 2024. Our survey and interviews focused on five key areas of change which could unlock consumption potential. These five areas of change are: A. “Non-standard shopping centres”; B. “Black technology”; C. Creative fairs; D. New performing art spaces, and; E. “Micro vacation” commercial retail spaces. To find out more on retail market in China, please click here to download our report: https://lnkd.in/gT9hAAKz #retail #realestate #retailrealestate #cushmanandwakefield

One of China's most successful brands is a company you've probably never heard of if you're outside of China. It's described by fans as the "only" shopping mall worth going to. Attracting shoppers from across China who go there for the experience as much as the shopping. But it's not in any major cities in China. There are only nine stores. All in the province of Henan. And all in two fourth-tier cities, Xuchang 许昌 and Xinxiang 新乡. Any ideas yet....? It's Pangdonglai (胖东来). Which translates to "Fat Donglai", a reference to the name of the founder, Yú Dōnglái 于东来. Pangdonglai is a super market and shopping mall brand with a difference. Here's why it's become a national phenomenon: • Customer service: Product information cards educate shoppers on product differences and health details; customers can skin fruits and vegetables before weighing, and only pay for their first shopping bag. • Employment policies: Staff shifts are capped at six hours, and stores are closed on Tuesdays—no exceptions. The founder emphasizes that overtime isn’t acceptable, prioritizing employees’ personal time. • Pricing: Own-branded products are low-margin yet high-quality, while branded products are sold at a premium thanks to an enhanced customer experience. • Branding: Pangdonglai has transformed into a tourist hotspot. Interestingly, live broadcasts inside the mall are banned to protect customer privacy and personal safety—even if it means turning away internet celebrities with millions of followers. • Profits: In 2023, Pangdonglai raked in around 10 billion yuan (approximately $1.4 billion) with a profit of 140 million yuan (around $19.5 million), outperforming major supermarket chains like Yonghui Superstores, which reported significant losses. Unlike many brands chasing rapid, investment-fuelled growth, Pangdonglai has chosen to stay small. It’s this unique approach that has shoppers travelling from across the country to experience Pangdonglai for themselves. Because, as they say, "seeing is believing" (眼见为实)! Have you heard of Pangdonglai? Have you visited? (If you’re interested in learning more about this remarkable brand and discussions about it in China, let me know in the comments, and I’ll share the full RealTime Mandarin post with you—it’s free!)

✨EXPERT CHRONICLE✨ How slow pop-ups are reinventing retail : a revolution from China 🇨🇳 Faced with a rapidly evolving market and changing consumer expectations, a new approach is emerging in China: slow pop-ups. More than just a trend, this concept is revolutionizing retail by focusing on an immersive, sustainable experience. ✨ An experimental field of expression Slow pop-ups enable brands to test their offering and adapt in real time. Café AMI PARIS in Beijing, for example, has created a space that combines lifestyle and branding. In Shanghai, SCHIAPARELLI installed its pop-up at Plaza 66, transforming the space into a veritable creative laboratory, telling the unique story of the house. 📈 Meeting the expectations of new generations The Little Red Book platform has surfed this wave with its Slow Pop-up Store 2.0, a concept that has seen 46 boutiques spring up between Shanghai and Wuhan. A real success that reflects the values of a Chinese Gen Z in search of slow life, simple moments and well-being. 💡 A new era for retail With flexible, less expensive spaces capable of creating a strong emotional bond with their customers, slow pop-ups are redefining the way we consume. What if this model became the solution for reinventing retail on a global scale ? ➡ Find out how “Slow Pop-ups” are redefining the retail landscape in China in our full article 🔗 Link to article in comments. ✍ Anaïs Bournonville #Retail #SlowPopUp #Innovation #Trends #China #Marketing #GenZ #TheLittleRedBook

Really enjoyed writing this report during my visit back in Hong Kong, although the streets are no longer the same like how it used to be to be before. It was really interesting to see the transformation of the city 🏙️ The report touched on 3 observations that I gathered and some insights about the city, so be sure to check it out. #hongkongretaillandscape #hongkong #retaillandscape #APAC #APACretail #retailinsight #retailobservations

Tourists and domestic consumers supported Taipei’s retail sector last year, much of that in physical stores. Read more, in Savills Asian Cities 2H/2023 Taipei Retail Spotlight. http://sav.li/9rp #RetailInvestment #RetailExpansion #RetailTrends #AsianCities

According to The Investor, Thailand's Central Retail is investing $18.2 million to build a GO! branded mall in Hung Yen, northern Vietnam. The 1.6-hectare mall will open in 2025, offering over 40,000 products, mainly Vietnamese goods. Central Retail aims to expand its network to 58 localities in Vietnam. *Article is in Vietnamese 👉 Read the article for more details!    📌 Connect with us to get updated with the latest property news in Vietnam!   #vietnamproperty #news #realestate