A new report from global real estate services firm JLL, reveals that seven of the ten most attractive cities for luxury retail are now in Asia Pacific. So who are the winners?
The dominance of Asian cities in the index highlights the attractiveness of the region to retailers, thanks to its expanding middle classes and increasing levels of affluence and higher disposable income.
The «Destination Retail 2016» report for the first time provides a global ranking of cities by their appeal to cross-border retailers. Hong Kong is second only to London in its popularity. Also among the top 10 are Tokyo, Shanghai, Singapore, Beijing, Osaka and Taipei.
Corruption Crackdown
«Hong Kong remains Asia’s leading luxury shopping destination with many retailers using it as a springboard for expansion into Mainland China,” “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.,» said James Assersohn, Director of Retail for Asia Pacific, JLL.
Continued Asia Growth
Performance of the highly strung 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.
Top 10 Global Cross Border Luxury Retailer Attractiveness Index 2016:
1 London
2 Hong Kong
3 Paris
4 Tokyo
5 New York
6 Shanghai
7= Singapore
7=Dubai
9 Beijing
10=Osaka
10=Taipei
