Four Things You Should Know About Asia’s Retail Scene

With the Japanese labor market the tightest it has been in more than two decades and China’s slowing growth prospects, all eyes are on the Asia-Pacific region. One area of particular interest is the retail industry. Our retail expert, Jharonne Martis went to Hong Kong, Singapore and Tokyo to explore the impact Asian retail is having on its economy and globally. Here are the four things she noted.

Learn more about the retail landscape in Asia by listening to our corresponding podcast.

1. Fast Retailing’s Uniqlo Brand light is dimming

The Uniqlo brand has a loyal customer base but its light may be dimming. StarMine models suggest that Fast Retailing could be overvalued and although the company’s market-implied 5-year EPS growth is far above analysts’ projections, expectations could be too high. Keep an eye on the Japanese casual wear retailer to see if its fashions have staying power.

2. Seoul is benefitting from Hong Kong’s retailer troubles

Seoul could be the next hot retail market. As an affordable tourist destination Seoul looks set to be a luxury retail hub. The city already has three big department stores, Shinsegae, Lotte and Hyundai , traditional markets and a popular shopping district. Recent low real estate taxes have opened doors for designer brands like J Mendel and Chanel making the market more accessible to luxury fashion.

3. Japan’s textile industry is being boosted by Tokyo Fashion Week

Tokyo is a fashion capital of the world and twice a year it reminds us why with Tokyo Fashion Week. Hundreds of buyers fly out for the semi-annual event like Bird’s, Jennifer Mankins who attends to pick unique merchandise and high quality items. Reaching foreign buyers could potentially mean a leading position for Japan’s textile industry and economic environment.

4. Hong Kong’s I.T LTD is embracing apple pay technology

I.T wants to change the way consumers shop with the use of the Apple Pay digital wallet. Instead of using cash and credit cards the company will rely on technology to stay connected with its customers. This new way of shopping could translate to U.S stores sooner than expected. I.T has partnered with Nordstrom and their director of creative projects, Olivia Kim says that they’ll do their “best to deliver the full I.T experience for customers here.” This strategy could see an increase in I.T’s core consumer.

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