THE FUTURE OF LUXURY RETAIL IN ASIA PACIFIC

NEW DEMAND DRIVERS AND SHIFTING OCCUPIER REQUIREMENTS

Asia is reaching saturation point Over 90% of international luxury retailers have at least one standalone store in the region

5 of the 10 most expensive global retail markets are

located in Asia Pacific:

Hong Kong Toyko

Melbourne Sydney Beijing

Over the past 3 years, 237 luxury retailers have opened stores for the first time in 27 cities across Asia Pacific Luxury retailer penetration is high in most APAC markets CHINA 87% HONG KONG 81%

Over the past 3 years, 237 luxury retailers have opened stores for the first time in 27 cities across Asia Pacific Luxury retailer penetration is high in most APAC markets CHINA 87% HONG KONG 81%

Australia only has 50% penetration, primarily due to the dominance of department stores Therefore Australia offers significant opportunities for luxury retailers In 2014, 16 luxury retailers entered the Australian market, double the total of 2012 and 2013 combined

Penetration of luxury retailers in Asia Pacific:

Total luxury sales by region:

Global sales of personal luxury goods totalled EUR 224 billion in 2014. One-third was accounted for by Asia Pacific.

Several emerging trends which are set to provide the sector with a source of leasing demand: - Affordable luxury brands - Food & beverage in luxury retail stores - Luxury childrenswear

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