What: Latest consumer research highlights shifting retail dynamics in Asia-Pacific, where market-specific trends and omnichannel adoption are reshaping shopping behaviors across Australia, China, India, Japan, and South Korea.

Why it is important: Understanding these regional variations is crucial for retailers as they indicate fundamental shifts in consumer behavior, with omnichannel shopping becoming dominant in South Korea, while India shows unprecedented growth in experiential retail, requiring tailored market approaches.

The Asia-Pacific retail landscape demonstrates remarkable diversity in consumer sentiment and shopping behaviors across its major markets. Australia exhibits strong consumer optimism, with increased spending intentions across all income groups and categories. China shows resilience amid uncertainty, with Gen Z optimism rising despite overall cautious sentiment, particularly among older consumers. India's market reveals dynamic growth, with consumers embracing omnichannel shopping at unprecedented rates, though sentiment varies significantly by gender. Japan and South Korea maintain stable consumer behavior while showing strong shifts toward omnichannel shopping, with Korean consumers increasingly favoring online platforms. The research highlights how economic conditions, generational preferences, and technological adoption rates are creating distinct retail environments in each market. This diversity requires retailers to develop market-specific strategies while acknowledging the common thread of increasing omnichannel adoption across the region.

IADS Notes: Recent market data underscores the complex evolution of Asia-Pacific retail throughout 2024. In January, Coresight Research identified key trends in China's retail landscape, projecting sales to reach ¥44.2 trillion. India's retail sector demonstrated significant transformation with the expansion into Tier 2 and 3 cities, while emphasizing experiential retail and AI-driven personalization. A notable milestone was reached in South Korea, where online shopping surpassed in-store sales for the first time, capturing 50.5% of the market. These developments align with broader regional trends, as evidenced by Visa's Economic Insights showing a 20-25% projected growth in outbound visitor numbers for 2025, indicating strong consumer confidence and spending potential across the region.

Asia-Pacific consumer sentiment: A mix of growth and challenges