What: APAC consumer sentiment reveals stark regional contrasts, with India leading discretionary spending while Japan and South Korea navigate economic headwinds amid rising inflation and tariff concerns.

Why it is important: The divergent consumer behaviors and economic responses across APAC markets signal a fundamental shift in regional retail dynamics, requiring retailers to develop market-specific strategies while adapting to accelerating digital transformation.

The Asia-Pacific consumer landscape exhibits remarkable diversity in sentiment and spending patterns across its major markets. India stands out with robust discretionary spending across categories like dining, travel, and electronics, while maintaining strong optimism despite global uncertainties. In contrast, South Korean consumers are demonstrating increased caution, particularly in travel spending, reflecting broader economic challenges and heightened sensitivity to tariffs. Japan faces its own challenges as consumers adapt to inflation levels unseen since the 1990s, leading to significant changes in shopping behaviors and increased preference for discount stores. Meanwhile, China shows resilience amid uncertainty, with consumer optimism growing despite ongoing trade policy concerns. Australia presents the most positive shift in consumer sentiment, with net optimism rising three percentage points, suggesting growing confidence in economic recovery. These variations in consumer behavior and economic response highlight the complex interplay between local market conditions, global economic pressures, and evolving consumer preferences across the region.

IADS Notes: Recent market analyses highlight significant transformations across APAC retail. As observed in January 2025, market-specific trends and omnichannel adoption are reshaping shopping behaviors, with South Korea's online shopping surpassing in-store sales for the first time. February 2025 data showed Japanese retailers adapting to weak consumer confidence through value-oriented strategies, while March 2025 revealed India's projected growth in affluent households to 30% by 2035. These developments coincide with substantial investments in digital infrastructure , as exemplified by Central Retail's USD 665 million commitment to AI integration and ecosystem development.

Asia–Pacific consumer sentiment: Spending shifts amid uncertainty