Management Research Paper: An Investigation of The Changing Retail Trends: Emerging Opportunities and Challenges in Asian Countries

An Investigation of The Changing Retail Trends: Emerging Opportunities and Challenges in Asian Countries
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* Introduction
The retail market in Asian counties has been witnessing various transformations, which have opened new opportunities and also created some major challenges to some businesses within the region. The Asian retail market has been growing; the market was estimated to be worth USD 3.8 billion in 2019. Expansion of the retail market in the Asia Pacific region has been attributed to the growth in market size and an increase in investments in various countries. With the Asian region accounting for more than 50% of the global population, the demand for retail products has always been on the rise, with many companies that venture into the retail business reaping huge profits. The growth has also been attributed to the high level of GDP registered by counties within the region. According to a report by Economist Intelligence Unit in 2013, the GDP of countries within the region amounted to US$22.6 trillion, which was an estimate of one-third of 31.8% of the total global GDP. China has registered the highest level of retail market shares in the region, with its estimated growth rate registered at 11% by 2013. China has also been able to attract the highest number of retail investors because of its high population. The Asian region has continued to indicate an increase in the number of businesses and expansion in the investment levels. There are many trends, which have shaped the retail market in the Asian region, including; continued expansion in technology and the growth in the population of China and India, modernization of grocery markets in emerging markets across Asia, continued changes in the fashion industry, and the rise in the digital commerce. However, there are some challenges that face the retail industry in the Asian market, such as; increased customer demand, increased levels of competition, enhanced trade regulations and restrictions as well as keeping up with the customer demands. This research focuses on the investigation of the changing retail trends, emerging opportunities, and challenges in Asian countries.
* Emerging Opportunities and Challenges In Asian Countries
* Retail Market In Asian Countries
The retail market in Asia has registered tremendous growth in the past decade, with the market currently being valued at USD 1 trillion. It is also expected to have an estimated 9% growth in its revenue generation. The market has been thriving, indicating there has been a vital growth and expansion in the revenue generation, which has helped in enhancing sustainable growth. Many retail businesses in the region are based on the traditional system of brick and mortar, where many stores have been established in various locations across the cities and towns of the counties across Asia. According to the study, "Development of the grocery retail market in China: A qualitative study of how foreign and domestic retailers seek to increase market share" by Hingley et al. (2008), the retail market, especially the retail grocery market in China, has witnessed major transformations and growth in the way it operates. The market has been influenced by the growth in the use of social media platforms to complement the physical outlets. There has also been an increase in the number of retail consumers across the Asian countries, which have registered an estimate of 50% of the global population. The Chinese and the Indian markets have registered the highest market shares, providing the highest number of consumers due to their large populations. People in urban areas across Asian countries have had increased purchasing power, which has made it possible for them to consume more and purchase more from retail stores. Many global brands have moved to the Asian market because of the lucrative and expanding market.
The Asian retail market has been characterized by the growth and expansion of luxury goods as luxury brands move to the region. Companies such as; Louis Vuitton, Gucci, Versace, BMW, and Mercedes have dominated the markets across Asia. Lu et al. (2018), in the text, "Cross-national variation in consumers' retail channel selection in a multichannel environment: Evidence from Asia-Pacific countries", argues that the increase in urbanization across the region has helped to expand retail trade, with domestic demand for consumer goods being steady and always on the rise. Expansion in economies of countries such as the Philippines, Indonesia, Malaysia, and Vietnam has also opened new opportunities for investment for retail businesses. Yakhlef (2015), in the text, "Customer experience within retail environments: An embodied, spatial approach," argues that the constant evolution of the Asia-Pacific retail market has also been characterized by changing consumer demands, with many businesses adopting the use of technology as a way of reaching their consumers. There is, however, a high level of diversity among the Asian countries, which makes demands for various retail products vary from one country to the other. Countries also have various customers divided into different demographics, with some having rich people and others who are poor. With some counties such as China having a high population of young people, where the demand for electronic devices and new fashion clothes are in high demand, retailers can move to the country and establish business operations in that nation. Grewal et al. (2009), in the text, "Customer experience management in retailing: An organizing framework," agrees with Yakhlef (2015) that countries such as India, Vietnam, and Indonesia are modernizing at a fast rate, which has made them attract a high number of retail businesses focusing on the fast-moving products in the market. However, in countries like China, the retail industry has experienced major disruptions in its operations due to the process of digitalization, which has changed the way the retail businesses operated.
* Changing Retail Market Trends In Asian Countries
The Asian retail market has experienced various changes and transformations, which have shaped the way the market operates. Consumers have played a major role in the process of driving retail market decisions. The market has also been driven by an increase in demand for consumer goods by the middle class, with the growth of the younger influential generation (Srivastava, 2008). Increased use of technology, use of social media platforms, and mobile phones for communication, and the purchase of goods from online platforms have also characterized the young generation. There has also been an increase in the desire for convenience, which has forced businesses to develop viable systems that have helped them in delivering a product to customers on time when they order online. Expansion in the e-commerce market has brought a major transformation in the way retailers have conducted their business activities, with many traditional and e-commerce retailers focusing on the expansion of their business activities through e-commerce platforms to reach more customers across the Asian market (Hossain, 2014). Expansion of B2C markets has helped many businesses to grow and reach a vast group of customers across the Asian region. A majority of consumers have moved to adopt online shopping processes, with some retailers forming partnerships with payment companies to provide easier payment services to customers, especially through the use of electronic payment services as well as the use of mobile wallets.
The region has witnessed fast growth in the mobile phone industry and penetration in technology for basic communication and business activities (Goldman, 2001). Many consumers, therefore, spend most of their time online, with a majority spending more time on social media platforms, where retailers have also focused on the marketing of their products. At least 33% of retail shopping in the region is from online shopping transactions. There has been an expansion in online to offline (O2O) retailing, where the process has transformed operations of e-commerce businesses and made retailers adopt new marketing strategies for the products (Uncles, 2010). Retailers have focused on better ways of ensuring they integrate their physical stores and online platforms as a way of satisfying consumer needs. They have focused on the creation of a viable O2O shopping experience for consumers, with better convenience, accessibility, and transparency. Retailers across the region have moved to use advanced technologies as well as improved customer engagement digital tools, such as gamification and virtual reality, and augmented reality. Retail businesses have also focused on the adoption of "experiential shopping" through the creation of personalized customer experiences and meeting the demands of customers who have a changing lifestyle (Reardon et al., 2012). Businesses have also focused on the creation of an upgraded shopping experience for the customers by focusing on all the segments of customers with the intention to meet the specific tastes of customers. Businesses have also attained a higher level of economies of scale through the adoption of advanced technologies, proper utilization of strategic repositioning opportunities as well as proper business brand-building know-how. Growth in the tourism sector in a majority of Asian counties, such as; South Korea, Thailand, China, and Japan, have led to advancement in retail businesses (Hardaker, 2018). The growth in the number of Chinese tourists across various Asian counties has led to the development of duty-free businesses in downtown and airport areas, especially in major destinations in Asia.
* Emerging Opportunities For Retail Market In Asian Countries
Many opportunities have emerged in the retail sector across Asian countries. The major opportunities have been driven by trends and changes in the Asian market. There has been a growing trend in the growth of the consumer-driven economy across Asian nations. The differences in Asian countries, such as the geographic, economic, political, cultural, and social spheres, create different consumer needs (Ferreira & Ferreira, 2018). The continued rise in the fast-growing middle class and the growth in the number of millennials in the region continue to open new business doors for the retail sector. The younger generation has focused on the adoption of technology, focusing more on the use of mobile phones and social media. The Asian region has experienced a growth in the middle-class society, with the middle-class becoming the powerhouse of consumerism within the region. The middle-class population is expected to be, on average, 540 million by the end of 2020, with the total population growing by 25% to hit 1 billion in 2020 in India and the South Asian region. Over 70% of the total population resides in towns and the urban areas across the region, thereby becoming the Asian powerhouse for domestic consumption (Volk & Pudelko, 2016).
Figure SEQ Figure \* ARABIC 1: Asia Distribution and Retail (2017). Asian retail: 9 Key trends and deve...