The share of older people will steadily increase, which is expected to increase the demand for healthy food and home deliveries in the future Increased share of 1 and 2 people households, with a higher degree Of households with single parents.
This development is expected to increase demands for the convenience shopping Another trend affecting the need for convenience shopping, is the increasing rate of women that are working outside their homes An even more multicultural society makes the demand profile of the customers more diversified The gap between richness and poorness are increasing which peaks for further segmentation of the retail market The retailing industry has for a long time been local in comparison to other industries.
For instance, the 15 largest companies in the pharmaceutical industry represents 70% of the tot al sales worldwide whereas today some of the largest European retail companies have at most succeeded to come over 50% of their turnover in foreign countries. However, in recent years the internationalization has also slowly started to accelerate Asia: As Sais’s current environment of high inflation and rising prices drives customers to seek value, private food labels have new opportunities to increase their share.
Major international retailers will continue to expand in Asia, with more tailored strategies being introduced in China. Rising incomes will continue to drive growth in the FMC sector but companies will have to contend with several challenges, including increasingly demanding, value- conscious consumers and cut-throat competition. Asian demand for fashion ND apparel will continue to lead the world, and international fast fashion brands are expanding aggressively to cash in on Sais’s young demographic and rising affluence.
Online retailing continues to grow rapidly in Asia, prompting traditional and foreign offline retailers and even luxury brands to embrace online sales in the region. The future of global retail lies firmly in Asia, but economic growth in the region is slowing and inflation and interest rates are high. Companies are responding by reworking their product, reduction and regional strategies and looking for acquisitions, while continuing with their organic expansion.
China remains the main focus for foreign companies across all categories. As international companies try to make inroads into Asian markets, they will face stiff competition from well- established local brands. Countries across Asia are quickly expanding access to broadband and mobile phones. This is helping online retailing in Asia to expand quickly and traditional retailers are exploring the online channel.