The retail landscape in the Asia Pacific (APAC) region has undergone a significant transformation, moving beyond post-pandemic recovery to redefine the future of consumption. Fueled by a powerful resurgence in tourism and a growing appetite for premium products, the APAC retail market is demonstrating remarkable resilience and innovation. Inbound tourism is set to grow by 11% in 2025, pushing the region past pre-pandemic levels and injecting new energy into its prime retail corridors. This influx, combined with rapidly rising household wealth, has created fertile ground for “premiumization”, where consumers increasingly seek high-quality, experience-driven shopping.
As such, India’s retail sector continued to demonstrate strength with year-to-date leasing volumes as of Q3 2025 surpassing 7 million sf, reflecting a 25.2% y-o-y growth. Top-tier cities in India, like Gurgaon and New Delhi, are witnessing impressive rental growth of 25% and 14% over the past 12 months, respectively, driven by the demand for premium retail spaces. In Japan, iconic districts like Tokyo's Ginza and Omotesando are experiencing double-digit growth as luxury brands expand their footprint. Even established hubs like Sydney's Pitt Street Mall are seeing renewed interest, proving that physical retail remains a cornerstone of brand strategy. This competitive environment is compelling retailers to use advanced data analytics to secure the best locations, focusing on strategic presence over mass expansion.
Another key shift shaping the new APAC retail narrative is the deep integration of digital and physical experiences. Retailers are moving past simple omnichannel strategies toward a more cohesive "unified commerce" model. This approach blurs the lines between online and offline, creating seamless customer journeys. Innovations like AI-powered chatbots for personalized styling, augmented reality for virtual try-ons, and highly "Instagrammable" pop-up shops are becoming standard. This digital-first mindset caters to the region's tech-savvy consumer base, which expects convenience, personalization, and entertainment from their shopping experiences.
In addition, what sets the APAC market apart is its unique combination of a dynamic, young consumer base, rapid urbanization, and a willingness to embrace new retail concepts. The region is not just adopting global trends; it is often pioneering them. The concept of "retailtainment"—where shopping is blended with entertainment and social experiences—is thriving. From in-store cafes and exclusive lounges to live-streamed product demonstrations, brands are creating immersive environments that build community and drive loyalty. This focus on engagement and experience makes APAC a vibrant laboratory for the future of global retail.
Our latest Greater China Retail Supply & Demand Trends report also shows a shift from traditional transactional models to a focus on experiential retail, as the Chinese consumers increasingly seek memorable experiences rather than merely purchasing products. This shift is redefining the role of brick-and-mortar stores, positioning them as "retailtainment" destinations that combine entertainment, social interaction, and brand immersion. Examples such as pop-up art installations in Shanghai and tech-driven product demonstrations in Shenzhen underscore how leading retailers leverage physical spaces to create emotional connections and foster brand loyalty, moving beyond the function of a simple point of sale.
For investors and landlords, these trends call for a proactive and strategic approach to asset management. Relying solely on leasing space to the highest bidder is no longer sufficient for long-term success. Industry leaders are investing in infrastructure that supports technology integration, including augmented reality displays and interactive digital screens. Additionally, creating flexible spaces capable of hosting events, workshops, and community activities is essential to foster engagement and build a sense of community. Curating a diverse tenant mix that includes food and beverage, entertainment, and wellness providers helps establish an immersive environment, encouraging visitors to stay longer and return more frequently. Across the globe, our Project & Development Services teams help investors and landlords enhance their assets by delivering tailored project management solutions that prioritize quality, speed-to-market, and cost efficiency.
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