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Bangkok

Bangkok 18th Most Attractive Retail City

Asia boasts five out of top 10 appealing cities for international retailers globally.


Bangkok ranks eighteenth in terms of international retailer attractiveness, just ahead of Las Vegas, says The Destination Retail 2016, a new report from real estate consultant JLL. The report also reveals that Asia boasts five out of the ten most appealing destinations for international retailers globally. 

According to JLL’s report, which for the first time provides a global ranking of 140 cities by their appeal to cross-border retailers, reveals that Hong Kong is second only to London in its popularity. Also among the top 10 are Shanghai, Singapore, Beijing and Tokyo.
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Bangkok ranks 18th

Bangkok’s reputation as a shopping hotspot for fashion-conscious consumers is rising fast. The city now ranks eighteenth in terms of international retailer attractiveness, just ahead of Las Vegas. 

Boosted by rising income levels and growing tourism numbers from across the world, Bangkok has attracted many international brands, such as H&M, Zara Home, Pull & Bear and Victoria’s Secret. Recently, retailers such as Dior Homme, Pierre Hermé, A Bathing Ape and Tiffany & Co. have started trading in the city. 

The Ratchaprasong “Golden Mile” is the heart of Bangkok’s retail market and attracts many local shoppers as well as tourists, thanks to its central location and adjacent Skytrain. The area houses eleven shopping centres, including popular schemes such as Siam Paragon, Central World and Siam Square One. The recently completed EmQuartier, Central Westgate and Central Festival East Ville, all outside the city centre, are providing new attractive opportunities to international retailers. Bangkok’s retail landscape continues to diversify, with renovations at Siam Discovery and several suburban Central Plaza retail schemes, the opening of HaHa Market and the continued success of Asiatique The Riverfront, a combined shopping centre and night bazaar.

Asia Pacific cities are the most appealing destinations for luxury retailers to set up shop

In the luxury sector, seven cities from Asia Pacific are among the global top ten. These include Hong Kong, Tokyo, Shanghai, Singapore, Beijing, Osaka and Taipei.

Top 10 Global Cross Border Luxury Retailer Attractiveness Index 2016

RANKING
​1​London​7=Singapore
​2Hong Kong​7=​Dubai
​3​Paris​9Beijing
​4Tokyo ​10=Osaka
​5​New York​10=Taipei
​​6Shanghai

“Hong Kong remains Asia’s leading luxury shopping destination with many retailers using it as a springboard for expansion into Mainland China,” says James Assersohn, Director of Retail for Asia Pacific, JLL. “While there has been a noticeable slowdown in luxury sales in the city due to China’s slowing economy and the government’s anti-corruption crackdown, Hong Kong continues to attract many high-spending Chinese tourists.”

“More broadly, the dominance of Asian cities in the index highlights the attractiveness of the region to retailers, thanks to its burgeoning middle classes and growing levels of affluence,” explains Assersohn.

Tokyo, which takes fourth place globally, has seen a revival in luxury retailer’s demand for high quality real estate as a result of an improving economic climate and rising tourism numbers. 

The yen, which has devalued by nearly 30 percent since 2012, has made Japan a magnet for retail tourism across the region. International visitors to Japan rose 47 percent in 2015 over the previous year with the largest contingent being from Mainland China. A weaker yen is also encouraging Japanese citizens to make the most of their luxury purchasing power at home.

Shanghai, meanwhile, at number six in the ranking, is catching up fast on Hong Kong to become one of Asia’s leading luxury retail destinations and still remains Mainland China’s premier shopping destination

“Thanks to a diverse economy and wealthy consumer base, Shanghai has become a favourite place for international brands to test the Chinese market and gain brand exposure, sometimes bypassing Hong Kong in the process,” says Assersohn. 

“Overall performance of the luxury sector will depend not only on economic growth, but on factors such as volume of travel and increase in the number of high income households. As such, the strong growth in high income households forecast in Asian cities in the next 15 years should mean that Asia remains at the forefront of luxury spend growth, both domestically and abroad,” concludes Assersohn.