Bangkok No 8 in CBRE list of Asia-Pacific retail target markets

According to the report, cities in the Asia-Pacific region saw 464 new retail entrants in 2014, 23 per cent more than in 2013. A total of 19 of those new entrants were in Bangkok.

Tokyo saw the most new retail entrants at 63, followed by Singapore (58), Taipei (49), Hong Kong (45) and Beijing (34).

The luxury and business sector saw the greatest share of new entrants at 22.6 per cent, but the biggest climber was the coffee and restaurants sector with 22.4 per cent, compared with just 14.8 per cent in 2013.

Retailers from the United States made the most new entries in the region with 24 per cent, followed by Italy and Britain with 11 per cent each, then French retailers at 10.5 per cent. Japan was the top Asia-Pacific entrant, ranking fifth, with 6.9 per cent of the new market entries being Japanese retailers.

The head of CBRE Thailand research and consulting, James Pitchon, said Bangkok was one of the hot spots for retail development in Southeast Asia with about 1 million square metres of new retail space due to be completed this year.

With the opening of new malls such as EmQuartier, Central Westgate and Central Festival East Ville this year, as well as the increased level of international tourist arrivals in Bangkok, especially from China, CBRE anticipates the number of new entrants in 2015 will be more than in 2014. 

The coffee and restaurants sector is expected to create the largest proportion of the new entries in Bangkok while mid-range fashion brands will continue to expand, Pitchon said.

Jonathan Hsu, head of occupier markets research at CBRE Asia, said international retailers had long looked to establish themselves in the Asia-Pacific region, by first setting up in more mature markets such as Japan or Hong Kong, before using them as bases to launch into other markets in the region.