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APAC SHOPPER TRENDS REPORT Bringing you the latest consumer behaviour trends from across the globe

Q4 2017

www.shoppertrak.com

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Japan Australia

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-1.4%

-3%

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%-2%

APAC Shopper Trends Report Q4 2017Once again in our APAC Shopper Trends report we offer statistical insight into international shopper trends, this time for the final quarter of 2017.

APAC Overall Q4: -1% YOY

Hong Kong: +3%

Australia: -1.4%

India: -1.4%

Japan: -2%

China: -3%

Read our commentary for insights into recent shopper traffic in each country in the APAC region.

intro

2

APAC Review

there is plenty to play for as growing numbers of middle class

consumers seek retail therapy and new ways to interact with

their favourite brands.

Hong Kong claims the Q4 traffic crown

For the closing quarter of 2017, Hong Kong stood out as the top retail traffic performer for the Asia-Pacific region. Australia, India and Japan all delivered flat traffic numbers, while China saw the most significant dip into negative traffic territory.

It was an eventful three months across the region. October saw China’s National Day Golden Week holiday come and go, generating record levels of retail and food services spending, and helping Chinese and Hong Kong stores buzz with life that month. In Australia, Amazon finally arrived in November but failed to crush the pre-Christmas activity in stores, as commentators feared would happen. India’s retail performance was uncharacteristically quiet, but this economic powerhouse is expected to forge ahead in 2018, with countless retail developments opening their doors for business.

What’s the outlook for retailers of the APAC region for 2018? Political jitters aside, there is plenty to play for as growing numbers of middle class consumers seek retail therapy and new ways to interact with their favourite brands.

3

HONG KONG

APAC

* Footfall Year-on-Year

4

Ending the year on a high

Hong Kong rounded off 2017 as the top retail traffic performer of the APAC region.

Retailers can congratulate themselves on a +3% traffic rise in Q4, meaning that every quarter of the year saw positive growth. In Q3 traffic increased +3.2% YOY, in Q2 it was up +1.8% YOY, and Q1 saw a +3.5% YOY leap in shopper numbers.

What has fueled Hong Kong’s retail traffic success? Golden Week in October was a big traffic driver. Analysts also point to a stock market boom and rising property prices in the latter half of 2017, prompting Hong Kong retail sales to grow at their fastest rate in more than two years. Strong tourism has also kept interest in stores alive, with healthy visitor numbers from mainland China throughout the year.

Third party data source:, South China Morning Post , Forbes

HONG KONG

+3%*

Stock market boom and rising property prices in the latter half of 2017.

AUSTRALIA

AUSTRALIA

* Footfall Year-on-Year

5

Retail sales and traffic perk up in November

Flat traffic numbers characterised retail in Australia for most of 2017, and this remained the case in Q4 when footfall slipped -1.4%. November recorded the best performance of the quarter with traffic up marginally on 2016.

According to Focus Economics, a November rise in retail sales can be taken as evidence of Australian consumers loosening their purse strings, and that Black Friday promotions successfully caught shoppers’ attention. November also saw the arrival of Amazon into the country, which did not have as big a negative impact as many in the retail community feared.

Third party data source:, Financial Review, Focus Economics

-1.4%*

November also saw the arrival of Amazon into the country

APAC

INDIA

* Footfall Year-on-Year

-1.4%*

INDIA

6

Plenty to play for

Traffic into stores in Q4 was down -1.4% Year-on-Year in India, with only October contributing a positive performance.

While H1 of 2017 delivered spectacular traffic performance in India (with shopper traffic up +7.6% YOY in Q2 and up +6.5% in Q1 2017), H2 has proved more challenging. After this blip, however, a return to footfall growth is expected. New retail developments are opening rapidly, reaching new audiences, and this should boost retail traffic significantly. Statista forecasts retail sales volume growth of 6.6% in India for 2018.

Third party data source: IBEF , Statista, IndiaRetailing.com

New retail developments are opening rapidly, reaching new audiences

APAC

* Footfall Year-on-Year

7

JAPAN

Waiting on wage growth

Japan’s run of positive growth during Q2 and Q3 lost momentum in Q4 when traffic slipped by -2%. December was the toughest month, but healthy Year-on-Year growth in November (+6.3%) gave Japanese retailers the autumn boost they needed.

Economic growth held firm in Q4, according to Focus Economics. A stellar export performance is supporting Japanese manufacturing activity, there are high levels of investment, and business confidence has climbed beyond a one-decade-high this quarter. Weak wage growth is proving a bugbear for retailers, but consumers are increasingly confident that their incomes will increase in the coming months.

Third party data source: Focus Economics

business confidence has climbed beyond a one-decade-high this quarter.

APAC

JAPAN

-2%*

CHINA

* Footfall Year-on-Year

8

CHINA

Store traffic blips but outlook holds

Retail traffic faltered by -3% Year-on-Year in Q4, in the world’s most populous country.

October achieved +2.7% growth — helped by brisk Golden Week trading — followed by drops in November and December. Official figures confirm nominal retail sales grew 10.2% YOY in November, with clothing and household appliances most in demand.

In terms of outlook, the Chinese government predicts that its economy will grow by +6.3% in 2018, confirming the general health of the country, and a solid foundation for retailers to build on.

Retail traffic faltered by -3% Year-on-Year in Q4, in the world’s most populous country. October achieved +2.7% growth — helped by brisk Golden Week trading — followed by drops in November and December, despite Singles Day (November) and Double 12 Day (December) generating big sales uplifts. Official figures confirm nominal retail sales grew 10.2% YOY in November, with clothing and household appliances most in demand.

Third party data source: Focus Economics, Forbes

-3%*

Clothing and household appliances most in demand.

APAC

We believe it is not enough to collect data on consumer trends. We analyse the influences behind those trends, so that retail organisations can make meaningful changes. To find out more about how economic, social, cultural and political events are impacting your region, visit our online trends centre.

About the APAC Shopper Trends Report

This hub includes data from ShopperTrak’s APAC Retail Traffic Index, which provides a barometer of international shopper activity. We also offer the technology and consultancy to help retailers and shopping centres unlock the potential revealed in this data. We’ll support you with recommendations and action plans for tangible performance improvement, from pilot project through to full retail intelligence solution deployment.

To find out how ShopperTrak can improve your profits visit www.shoppertrak.com@shoppertrak

© 2014 Tyco Retail Solutions All rights reserved. TYCO and the product names listed in this document are marks and/or registered marks. Unauthorized use is strictly prohibited.

info.apac@shoppertrak.com

www.shoppertrak.com

© 2014 Tyco Retail Solutions All rights reserved. TYCO and the product names listed in this document are marks and/or registered marks. Unauthorized use is strictly prohibited.

About Tyco Retail Solutions

Tyco Retail Solutions, part of Johnson Controls, is a leading provider of analytics-based Loss Prevention, Inventory Intelligence and Traffic Insights for the retail industry. Our solutions deliver real-time visibility and predictive analytics to help retailers maximize business outcomes and enhance the customer experience in a digitally-driven shopping world. Our more than 1.5 million data collection devices in the retail marketplace capture 40 billion shopper visits and track and protect billions of items each year. Our retail portfolio features the premier Sensormatic®, ShopperTrak® and TrueVUE™ brands, as well as a full suite of building technology solutions. For more information, please visit TycoRetailSolutions.com, or follow us on LinkedIn, Twitter, and our YouTube channel.

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