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Bangkok ranks 18th in terms of international retailer attractiveness, just ahead of Las Vegas, in a new report from real estate consultant JLL. “The Destination Retail 2016” report also revealed that Asia boasts five out of the 10 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, Hong Kong is second only to London in popularity. Also among the top 10 are Shanghai, Singapore, Beijing and Tokyo.
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 Herme, A Bathing Ape and Tiffany & Co have started trading in the city. The Ratchaprasong area is Bangkok’s retail centre and attracts many locals as well as tourists, thanks to its central location and adjacent skytrain. It houses 11 shopping centres, including Siam Paragon, CentralWorld and Siam Square One.
The recently completed EmQuartier, Central Westgate and CentralFestival EastVille, 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 CentralPlaza retail stores, the opening of HaHa Market and the continued success of Asiatique The Riverfront, a combined shopping centre and night bazaar.
Cities in Asia-Pacific are the most appealing destinations for luxury retailers to set up shop. Seven Asia-Pacific cities are among the global top 10: Hong Kong, Tokyo, Shanghai, Singapore, Beijing, Osaka and Taipei.
“Hong Kong remains Asia’s leading luxury shopping destination with many retailers using it as a springboard for expansion into China,” said James Assersohn, retail director for Asia-Pacific at JLL. “While there has been a noticeable slowdown in luxury sales due to China’s slowing economy and the government’s anti-corruption crackdown,Hong Kong continues to attract many high-spending Chinese tourists,” he said.
More broadly, the dominance of Asian cities in the index highlights the attractiveness of the region to retailers, thanks to its burgeoning middle-class and growing levels of affluence, said Mr 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% since 2012, has made Japan a magnet for retail tourism across the region. International visitors to Japan rose 47% in 2015 with the largest contingent from China. A weaker yen is also encouraging Japanese 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 remains 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,” said Mr Assersohn.
(Original article from BangkokPost)