Asia’s large format retailers prepare for steady growth
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Global research organisation IGD has reported that Asia’s large format retailers are set to grow 3.3 per cent a year to 2022, with Vietnam, India and the Philippines forecast to see double-digit growth from large format players over the next five years.
Most of this growth is predicted to be driven by domestic retailers, except for Vietnam where foreign retailers have been investing to gain a foothold in this fast-growing market. Indonesia will see steady growth, also driven mainly by domestic players; with China coming through as another market with significant growth opportunities due to its vast geography.
Many large format retailers in Asia are still enjoying steady growth through expansion although they are facing pressures from increased competition in more developed markets.
Besides expansion to new regions, retailers are also digitising physical stores to create a seamless shopping experience in more matured markets.
Questions & Answers
Q.Which specific Asian markets are expected to see the fastest growth for large format retailers?
Which specific Asian markets are expected to see the fastest growth for large format retailers?
Vietnam, India, and the Philippines are forecast to experience double-digit growth from large format players over the next five years. This indicates a particularly strong expansion in these countries.
Q.What is the primary driver of growth for large format retailers in most Asian markets?
What is the primary driver of growth for large format retailers in most Asian markets?
Domestic retailers are predicted to drive most of this growth across Asia. However, in Vietnam, foreign retailers are significantly investing to establish a presence in the rapidly expanding market.
Q.How are large format retailers adapting to competitive pressures in more developed Asian markets?
How are large format retailers adapting to competitive pressures in more developed Asian markets?
To address increased competition in developed markets, retailers are digitising physical stores. This strategy aims to create a smooth shopping experience for consumers, alongside their continued expansion into new regions.
Q.Why is China identified as a significant growth opportunity for large format retailers?
Why is China identified as a significant growth opportunity for large format retailers?
China is highlighted as a market with substantial growth opportunities due to its vast geography. This extensive area offers considerable scope for large format retailers to expand their operations.
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