What: Asia-Pacific's retail landscape is undergoing a fundamental transformation, driven by innovation, cultural influence, and strategic risk-taking, moving beyond traditional cost advantages.

Why it is important: The region's growing influence on global retail trends, combined with its massive consumer market potential, is creating new paradigms for retail success.

Asia-Pacific's retail sector is experiencing a remarkable transformation, evolving beyond its traditional cost and resource advantages to emerge as a global leader in retail innovation and cultural influence. Companies from the region are leveraging sophisticated digital technologies, with firms like Central Retail investing USD 665 million in AI integration and ecosystem development. This technological advancement is complemented by a strong cultural influence, as demonstrated by Korean retailers successfully expanding across Southeast Asia through culturally resonant retail concepts. The region's manufacturing supremacy remains robust, though it's being reimagined through strategic relocations and supply chain innovations, as exemplified by Shein's Vietnamese expansion. Department store giants like Takashimaya and J Front Retailing are achieving record revenues by balancing traditional retail strengths with digital innovation. This evolution is supported by the region's growing consumer market, with China's retail sales projected to reach ¥44.2 trillion and Vietnam's market expected to hit USD 350 billion by 2025.

IADS Notes: Recent developments highlight Asia-Pacific's retail transformation. In February 2024, Central Retail's massive investment in digital infrastructure set a new benchmark for technological integration. By January 2025, Japanese retailers demonstrated successful digital transformation with international reach, while Korean retail giants expanded across Southeast Asia. The trend culminated in March 2025 with comprehensive omnichannel strategies becoming standard practice. This evolution shows how Asian retailers are successfully combining traditional strengths with innovative approaches to maintain global competitiveness.

The five forces shaping Asia-Pacific’s new powerhouses 

The five forces shaping Asia-Pacific’s new powerhouses - FULL REPORT