Taipei a target for global retail brands

Taipei ranked fourth as a target market for international retail brands last year as a willingness to try new dining and fashion is driving leasing activity across the Asia-Pacific region, a report by property consultancy CBRE Group Inc showed yesterday.

The nation’s capital rose seven notches from its ranking last year, with 49 new brands establishing a presence in Taipei, compared with 29 in 2013, according to the annual report of hot target markets by CBRE.

HOT SPOT

The results left Taipei trailing only Tokyo with 63 entrants in first place, Singapore with 58 entrants in second and Abu Dhabi with 55 entrants in third, the survey found.

“Taipei has become a hot spot for Japanese and [South] Korean fashion and cosmetics brands looking for overseas expansion,” CBRE Taiwan managing director Joseph Lin (林俊銘) said in the report.

The property broker saw strong leasing momentum from mid-range and fast fashion retailers, with existing brands introducing new product lines such as GU, a Japanese fashion retail chain. New arrivals also included New York-based contemporary clothing company Alice + Olivia and US multinational clothing and accessories retailer The Gap Inc among others, the report said.

OUTLET LOCATIONS

High-profile units on main streets were in strong demand last year, and the lack of flagship prospects pushed retailers to seek opportunities in department stores, the major retail format in Taiwan, the report said.

The number of new entrants located in shopping centers was relatively limited, but well-managed centers such as Breeze Center, Taipei 101 and ATT 4 FUN are gaining attention, the report said.

The luxury and business fashion sectors contributed 20 percent of all new retail entrants to Asia-Pacific markets last year, the report said.

The bulk of new entrants were second-tier luxury brands, since mainstream luxury groups are already well-established in the region, the report said.

CAUTIOUS

About 85 percent of luxury and business fashion retailers are looking at the region, although they are expected to adopt a cautious attitude toward expansion due to escalating operating costs, the report said.