Big Ideas on
Discussion from a recent A.R.E. event offers insight toward
understanding the world retail market, and designing
and sourcing for international projects
GOING GLOBAL: Expanding into
the Fastest-Growing Market
PANELISTS: Joel Katterhagen, Leggett
& Platt; Mark Pritchard, idX; Simon Ong,
Kingsmen Projects Pte. Ltd.; Moderated by
Paul Pinkus, RSM McGladrey Inc.
RE TAIL TRENDS IN GREATER CHINA
AND SOUTHEAST ASIA
“If you want to do business in China, you
must first know Asia,” said Simon Ong,
group managing director and co-founder
of Kingsmen Projects Pte. Ltd., based in
Singapore with 18 offices in 13 countries.
Ong was part of the panel that spoke at
A.R.E.’s Convention and Industry Summit
on “Going Global: Expanding into the
Fastest-Growing Market.” Ong noted that
global retail brands tend to open stores in
other parts of Asia before they enter the
Other notes on the rapidly growing retail
market in Asia:
• With a population of 3. 5 billion, Asia,
including the ASEAN nations, accounts for
half of the world’s population.
• The Asian Pacific consumer market is
expected to grow an average of 6 percent
from 2010 to 2014—2 to 3 percent higher
than growth projected globally, according to a February “Retail in Asia” report.
Retail sales are projected to reach $5.4 trillion this year and are expected to increase
to $8.5 trillion by 2014, according to
• For many multinational retail companies, entering the Asian market is more
Simon Ong (left), group managing director and co-founder of Kingsmen Projects Pte. Ltd., was
part of the panel that spoke at A.R.E.’s Industry Summit on “Going Global: Expanding into the
Fastest-Growing Market.” Also on the panel: Joel Katterhagen and Moderator Paul Pinkus.
than a matter of expanding market reach.
It has become fundamental to strategic
• Growth is mostly geared to luxury
goods, which is good news for mid- to high-end retailers.
• In China, first-tier, second-tier, third-tier, and fourth-tier cities are all established
with shopping malls, and with well-established mid- to high-end retail.
• The Beijing Olympics and Shanghai
World Expo have changed the mindset of
the Chinese. After successfully organiz-
ing two big world events, they are setting
higher standards and expectations for
cleaner streets and cities, and the people are
more confident, with much higher expecta-
tions and aspirations. Also, shoppers often
prefer foreign brands to local.