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"The recent pandemic has hit regional retail markets particularly hard, and negative factors have been amplified by necessary travel bans and social distancing measures. With recent waves of infection appearing in countries including India, Japan and Thailand, restrictions could remain in place for several further quarters and retail markets will have to continue to rely on domestic demand. Tourism, particularly driven by Mainland Chinese vacationers, remains severely curtailed. Many regional retail markets have come to rely heavily on this source of retail demand, and the absence of PRC shoppers has reshaped several markets including Hong Kong and Singapore.
All is not doom and gloom however, and the first quarter of 2021 has seen a pick up in some markets with ample reserves of domestic spending. In this respect, China and Korea are both outperforming, driven by pent up demand at home. Many remain pessimistic regarding future opportunities to travel and are reconciled to domestic tourism with positive implications for local spending. Hong Kong and Singapore have both stabilized after a period of correction, and rents appear to have bottomed out. A major recovery will only be possible once Mainland visitors return, however. In the interim, landlords are being creative with concepts and are repositioning trade and tenant mixes to appeal more to a local audience. Macau is also faring reasonably well under the circumstances, and small visitor numbers are nonetheless proving to be high spending. The Japanese market remains challenging while Thailand’s heavily tourist and trade dependent economy faces a particularly challenging year."
"China's economy has recovered well from the COVID-19. The luxury market remains robust in 2020, given the strength of the Chinese consumer and the lack in outbound travel. Athleisure and outdoor clothing brands are also quite active in the market given people’s increasing awareness of health issues. In 2021, a lack of outbound travel and the growth of domestic tourism is expected to drive the retail market in China to new heights."