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Event report

Past Event | Tapping into Emerging Retail & Luxury Markets in SEA

Picture of three speakers talking about Retail & Luxury Markets in SEA

We had an incredibly insightful morning at the "Tapping into Emerging Retail & Luxury Markets in SEA" event. Our sincere thanks to Nick Bradstreet and Simon Smith from Savills, and to Hoang Nguyet Minh, Senior Director of Commercial Leasing at Savills Vietnam, for their invaluable presentations.

 

Here are some key takeaways and data points from our discussions, encompassing both the specific focus on Vietnam and broader APAC trends:

  1. Resilient APAC GDP Growth: While global economic growth is slowing, APAC GDP growth is projected to slow to 3.8% in 2025, but will still outpace both the US and the Eurozone, highlighting the region's underlying economic strength.
  2. Strong Retail Growth in Vietnam: Retail sales of goods & services in Vietnam are projected to reach US$266 billion in 2025, marking a strong +9.6% growth. This is particularly noteworthy as 41% of Vietnamese consumers noted a decline in savings in 2024, suggesting a complex spending environment.
  3. Digital Dominance Across APAC: Online platforms remain a significant force across the region, with Vietnam specifically seeing a 33% increase in usage, solidifying the digital shift first observed in 2023. Omnichannel integration, live commerce, and social commerce are thriving across APAC.
  4. Shifting Retail Formats & Experience-Driven Retail: While traditional and small-format retail is declining, shopping malls in Vietnam are showing a slight recovery in 2025 (-17%) after deep declines, hinting at potential if experience and tenant mix improve. Globally, brands are increasingly prioritizing flagship stores and immersive environments. The future of shopping malls is evolving, with a focus on more F&Bs, outdoor spaces, and potentially fewer levels to enhance the consumer experience.
  5. Consumer Premiumization & Targeted Spending: A significant 28% of consumers in Vietnam are willing to spend more on things they like, even if not essential, underscoring a shift towards personal enjoyment over necessity, particularly in categories like cosmetics (46%), clothing (44%), and electronics (43%). Across APAC, consumers are increasingly prioritizing holistic wellbeing.
  6. Luxury Market Resilience in Asia Pacific: Asia Pacific (excluding China) accounted for a notable 24% of global luxury store openings in 2024, indicating robust regional demand and investment in experience-driven retail.
  7. Tourism on the Brink of Recovery: Despite Asia Pacific's international tourist arrivals still being at -8% compared to 2019 levels in Q1/2025, the region's tourism sector is on the brink of full recovery, with markets supported by strong tourism and luxury sales seeing the greatest rebound in 2024.

 

It was a truly engaging session, and we thank all our attendees for contributing to the vibrant interactive discussion.

Thanks to our Retail & Luxury Committee’ssupporting partner, Agility Research & Strategy, for their continued support.

For more information about the Retail & Luxury Committee, please contact Coralie VINCENS at cvincens@fccsingapore.com.

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