Retailers and retail space asset managers are positive on the industry’s prospects in the Asian region, but retailers are urged to adopt different strategies to meet the diversified tastes of consumers amid the fast-changing Asian consumer market.

Retailers and retail space asset managers shared their views on the mega trends of Asia’s retail industry at the China Daily Asia Leadership Roundtable held in Hong Kong on Wednesday. The conference was a special co-branded session in the Omni Channel Retailing Conference.

Giordano International, a men’s, women’s and children’s wear fashion retailer across China and 30 other markets, believes that retailers must “have discipline in employing different strategies to manage retail operations to maintain long-term sustainability” because of the Asian retail market’s diversity.

“We are maintaining the just-in-time inventory to maintain our competitiveness,” said Peter Lau, Giordano International chairman and CEO.

“Another point we emphasize is the creation of an in-store shopping experience for the consumers in which we present product and services information in a way that are considered to be controllable by consumers,” Lau added.

The Asian retail market is growing more diversified and China is most representative of it. “China is a diversified consumer market because of the differences in regional tastes and spending habits. Consumers in the country’s third- and fourth-tiered cities may be irrational spenders easily allured by retailers, but consumers in the country’s first- and second-tiered cities are much more rational.”

Roy Ho, head of general asset management and managing director of commercial platform at GCP Retail Management Ltd, concurred with Lau.

“My job enables me to work with many brands and from my experience, only two-thirds of the known brands still survive in the Chinese market,” Ho said. “For retailers to survive in China, they must understand the market, maintain good logistics support and be good at creating an in-store shopping experience for consumers.”

As a former general manager of Plaza 66 Shanghai developed by Hang Lung Properties, Ho highlighted the success of retail brands to shopping mall operators.

“In 2011, Plaza 66 Shanghai involved more than 160 shops that contributed 3 billion yuan ($163 million) sales whereas the 20 retail brands out of that total contributed 70 percent of sales,” Ho noted.

Tom Gaffney, Jones Lang LaSalle’s national director and head of retail, also agreed on the importance of tenant mix to mall operators. “I think a good tenant mix should be wide-ranging and include a variety of brands.”

“I am bullish on the Asian retail market because some regional markets such as Hong Kong are the beneficiary of the recent influx of US and European fashion brands,” said Gaffney. “Big business exposure in China can enable big brands to generate huge income for their businesses.”

Thailand is another Asian retail market that is set to boom as it relies on regional tourist arrivals from China, Russia and the Middle East. He said that the Thai retail sector is growing, which can help nurture the growth of some Thai retail brands. The retail markets of Singapore, Bangkok and Jakarta will also bode well for retailers in the future.

However, Gaffney cautioned that Asian retailers may confront soaring rental costs which may squeeze their margins drastically. He cited certain parts of Hong Kong’s retail rental space as being the highest in the world, such as Causeway Bay, due to the competitiveness of the retail environment.

Turning to Hong Kong, Gaffney said that Canton Road in Kowloon will continue to be the prime brand-shopping district in the city whereas the Kowloon East district will become the next popular shopping areas in Hong Kong.

Francis Cheng, Occasions PR & Marketing’s CEO, said that prime location and tailored-made services are important to capture consumers’ attention.

“For retail brands to capture the Chinese market, they usually organize their fashion shows in China. Geographical and cultural proximity are important for brands to maintain their popularity. US fashion brand Gap came to Hong Kong in 2011 and since then they developed Asian style to keep the Asian customers.”

“There is no one single formula that can work to allure consumers. You have to formulate a marketing package to attract the customers,” Cheng said.

Contact the writers at oswald@chinadailyhk.com and linjingcd@chinadaily.com.cn