UOB bank
June 2019
Rising urbanisation in ASEAN cities is creating a wealth effect that is translating into retail sales growth. The rising middle class will redefine the ASEAN consumption story in the future.
Rising tourist arrivals and corresponding inbound tourist receipts also lead to growth in department store sales. This is evident in Thailand, a country well-positioned as a "shopping destination".
Brick and mortar stores remain the dominant and preferred channel for product categories in the region. Department stores are well positioned to be the key medium with strategic footprint in key cities such as Hong Kong and Singapore. Immersive showrooms and pop-up stores have emerged as enablers to drive foot traffic within the department stores.
Given the ever-changing consumer preference and retail landscape, department store players will have to continue adapting and innovating in order to capture consumers' loyalty and to convert time spent in-store into retail spending.
UOB has rolled out a cash management and supplier financing programme to support the continued growth of department stores in the ASEAN region. Please contact us here.
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