[Interview] “Prosperity growth creates unseen opportunities in Asia”

The Asia-Pacific region is the largest, but also the most diverse retail market in the world, with a significant population and growing prosperity. If you want to experience these exciting developments, come to the first edition of Retail’s Big Show APAC in Singapore in June.

High expectations

For the first time in more than 100 years, the world’s leading retail trade show, the National Retail Federation’s (NRF) reputed ‘Big Show’, will take place outside the US: the show is coming to Singapore from 11 to 13 June. RetailDetail spoke to director Ryf Quail, who is leading the project for Comexposium, the trade show organiser we know in Europe from Paris Retail Week, among others.

“We were contacted by the NRF even before Covid to think about globalising the event. Now it can finally take place”, he says. Expectations are high: “This is a big and exciting step. Recently, I have met pretty much the who’s who of the Asia-Pacific region. Those retail leaders were generous with their time and enthusiasm.”

Why Singapore? “Asia Pacific is the largest retail market in the world. 55 to 60 % of e-commerce shoppers are here. Singapore seemed to us to be the best gateway to the local retail community. The city-state has all the facilities, is an important and centrally located transport hub that is easily accessible. Global players coming to Southeast Asia often set up their headquarters in Singapore.”

Different challenges

The region is not only the largest retail market, but also the most diverse. E-commerce is dominant, but the challenges in each market differ. North Asia is completely different from Southeast Asia. There are different challenges in each market in terms of legislation, technology, payment solutions… “In Indonesia and Malaysia, you can see that the use of digital wallets is very established. People do not use credit cards as much there. In Australia, Japan or Singapore credit cards are used more. China is leading the way with ‘live shopping’, for example.”

The differences in geography are equally huge: “In Singapore, you find 5.5 million people in a small area, so the last mile is easy there. Australia, on the other hand, has a small population in a very large country. Then it becomes expensive to get products to the people. It is also very difficult on island archipelagos like the Philippines or Indonesia. There, it works through local retailers.”

Explosion of prosperity

Overall, we see an explosion of wealth in the region, with a large population: Malaysia has more than 33 million inhabitants, Indonesia is even the fourth most populous country in the world with 280 million people. This creates unseen opportunities. “We saw a rapid increase in basket size in e-commerce here. Online shopping has evolved from a novelty to routine.”

In some places, though, population evolution comes with specific challenges: “Japan is going to see its population decline by 40 million by 2070. Therefore, Japanese retailers are looking at new markets for growth. In China and South Korea, too, the population is shrinking.”

The six major nations in Southeast Asia – Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam – produce for the whole world. This brings major challenges to the supply chain. These companies are also now pushing harder for ethical and sustainable practices, spurred on by high European standards.

Which retailers should we discover here? There are the big marketplaces, like Zalora for example, the leading online fashion platform in Asia. Or Lazada, the leading marketplace in the Philippines. Brands like Love, Bonito, Charles & Keith, or Jim Thompson, known for its silk ties, have ambitions to expand across the region. “These are fascinating developments.” At the conference during the trade fair, C-suites from Jim Thompson, Uniqlo, Central Retail Group, Fairprice Group or Australia’s Wesfarmers, among others, will speak.

Meeting people

“More and more companies are realising the opportunities in this Asian region. We are going to see big leaps forward in this part of the world. The market will mature”, Quail knows. It is important to make personal contacts: “If you come from Europe to establish yourself in Southeast Asia, you do it through partnerships. And to build partnerships, you need to meet people. Events like this are really about people: about great retailers and great minds coming together.”

“What I find so fascinating is that within three years or maybe even sooner, we are going to see the first outcomes of the meetings at this event. That is the reason for us to get out of bed in the morning and do what we do. If these collaborations come to fruition – and I am sure they will – it will be very fulfilling for me and the team. Magic happens when you put good people together.”

Come to Singapore with RetailDetail

Want to discover the progressive Asian retail for yourself? In June, RetailDetail will take you on a five-day Retailhunt to Singapore, where we will also catch the best of the NRF 2024: Retail’s Big Show Asia Pacific.