Demographic shifts boost APAC’s DIY retail

BANGKOK’S RETAIL GROWTH TO DEPEND ON GOV'T HELP

THAILAND

The improvement in Bangkok’s retail market in coming months will mainly depend on how much the Thai government will provide support, especially in facilitating consumer spending in Thailand’s capital city in 2022, according to a report from CBRE.

Thailand’s retail industry started to be active again in Q4 2021 due to the country’s improved sentiment from relaxed COVID measures both domestically and for international tourist arrivals, the report stated.

However, concerns of new COVID variants, such as the surge caused by the Omicron variant early this year, meant that optimism was cautious in Thailand and Bangkok and the expectation was that 2022 will begin without any clear picture of recovery.

As of Q4 2021, 600,000 square metres of net leasable retail area was under construction in Bangkok. The large new retail developments expected to be completed between 2022 and 2023 are such as Terminal 21 Harbour, The EmSphere, and Central Village (Phase 2).

Evolving retail

Retail landlords must need to keep focusing on adjusting rental structures and lease clauses relating to flexibility to tackle the uncertainties in the market, the report stated.

“Both landlords and retailers will have to continue evolving together. Landlords will need to collaborate more with tenants to differentiate their experience and bring back traffic to their physical stores,” CBRE said.

The total retail supply in Bangkok climbed 1.3% YoY to 7.9 million square meters in the last quarter of 2021, according to the report. At the same time, overall occupancy rate dropped 0.9 ppt when compared with the same period last year. pandemic wreaked havoc across several industries and businesses, but the region’s home improvement retailing market nonetheless witnessed a significant growth rate, with many retailers adopting advanced technologies like the Internet of Things (IoT) and augmented reality (AR) to enhance user experience.

“In addition, acquisitions by some major market players like that of Scapic by Flipkart to boost online shopping rate amongst customers during the pandemic by utilising modern technologies also accelerated the market growth during the deadly coronavirus pandemic,” the report further explained.

Better growth opportunities

The rest of the Asia Pacific region is especially expected to witness better growth opportunities, with revenue projected to hit $26m by 2028 due to the rising number of South-East Asian customers.

“In addition, technological advancements, ultra-modern DIY product enhancements by market players, their powerful acquisitions, and heavy investments in the R&D activities are some factors estimated to propel the market development in the rest of the Asia Pacific region,” the report added.

The DIY market’s painting subsegment is also expected to see a lucrative growth rate over the same period due to the availability of several DIY paint products, as well as the implementation of DIY product enhancements by major market players due to rising customer demand.

The offline sub-segment is also projected to maintain a dominating market share, as offline distribution channels effectively helped in enlarging the customer base of the local market, the report stated.

The market’s revenue is projected to grow to $87.1b in to 2028

Demographic shifts boost APAC’s DIY retail

ASIA PACIFIC

The rise in population and demographic shifts in Asia Pacific has boosted the region’s do-it-yourself (DIY) home improvement retailing market, which is expected to see steady growth in the coming years, according to a report from Research Dive.

The market’s revenue is projected to grow at a 3.9% compound annual growth rate (CAGR) to $87.1b by 2028, driven by the the dominance of populated countries like India, China, and Pakistan in the retail sector, immense urban increments, and prominence of megacities.

On the other hand, the lack of skilled professionals in the DIY home improvement sector is the major factor expected to hinder market growth, the report stated.

Nonetheless, growing emphasis on environment-friendly projects and initiatives like DIY combo kits, reusable snack bags, and DIY un-paper towels could potentially offer abundant growth opportunities for the market in the coming years, Research Drive said.

The onset of the COVID-19

The lack of skilled professionals in the DIY home improvement sector hinders market growth

The DIY market's painting subsegment is expected to see a lucrative growth rate