Latest / The Retail Podcast / Five Things Friday APAC Retail Media’s Surge | Thailand’s Mega‑Malls | MUSINSA×ANTA | Urban Revivo

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Five Things Friday APAC Retail Media’s Surge | Thailand’s Mega‑Malls | MUSINSA×ANTA | Urban Revivo · The Retail Podcast

• 0:01
  Hi, I'm Ruth Quayle, Managing Director of NRF Retails Big Show
• 0:05
  Asia Pacific and this is Five Things Friday, APEC edition.
• 0:22
  Hello. Hello, Alex.
• 0:24
  I'm enjoying you, Alex. I'm yeah, very good mate.
• 0:27
  I'm very good. I'm getting good at these intros
• 0:30
  I think. They're fantastic.
• 0:32
  I know, Alex. We're going to try and keep this
• 0:34
  to 15 minutes. We'll start with your two top of
• 0:38
  mind items and then I'll let you crack on and then I'll share my
• 0:44
  my 3. Yeah, OK, fantastic.
• 0:47
  Yeah, I'm going to go 1st. I'm going to talk about my two.
• 0:49
  OK, fine. Let's me talk about my 2:00.
• 0:51
  But the first one we really in an age of the 3rd and 4th
• 0:58
  digital media waves. The first digital media wave was
• 1:03
  search. Now search would took about
• 1:06
  6:15, 14-15 years to hit $30 billion US right.
• 1:12
  Then we had social led by Facebook, took about 11 years to
• 1:18
  hit $30 billion. Then the next, the 3rd wave and
• 1:23
  this is the one we're most interested in.
• 1:25
  The third wave in retail media is led by Amazon, and it soared
• 1:29
  to $1 billion in 2016 to $30 billion in just five years.
• 1:35
  Right now that is incredible. So where, let's say if you think
• 1:38
  of that, that was led by Amazon. But now the world is changing.
• 1:43
  So in 2025, the share of retail media will 3rd globally. 37% of
• 1:50
  that will come from China. So retail media in Asia Pacific
• 1:55
  is absolutely booming. Yeah.
• 1:57
  So this is pretty fascinating because we've we've we've had
• 2:01
  the launch, but really now China and the rest and Asia Pacific is
• 2:03
  really, really growing dramatically and contributing a
• 2:08
  significant share. the US is only around 40%.
• 2:10
  So we're only talking 3% difference between China and the
• 2:13
  US where, you know, this all started with Amazon in 2016.
• 2:17
  Go ahead. So when we think about retail
• 2:20
  media, though, in Asia Pacific, you're looking, you're looking
• 2:23
  at the markets and it's very, very diverse.
• 2:26
  So China is incredibly mature. It's this is retail media is
• 2:30
  essentially embedded as part of e-commerce.
• 2:33
  So JD, Alibaba, those big platforms also in the social
• 2:38
  commerce players, Tiktok, obviously, and the other Chinese
• 2:42
  social players and and these are really are just dominating the
• 2:46
  landscape domestically and then starting to reach outside of
• 2:49
  China, Japan N Asia is pretty advanced all the way through.
• 2:52
  So we're looking at places like Japan and South Korea are also
• 2:56
  pretty advanced. So Rakatan and Yahoo in New
• 2:59
  Zealand. Oh, sorry, in New Zealand, I
• 3:01
  said New Zealand R Rakatan and Yahoo in Japan coupon in, in
• 3:05
  South Korea. These these are hugely mature
• 3:08
  platforms already. But when I look at the other
• 3:11
  markets, it's really, it's all still about scale.
• 3:13
  There's so much upside. So and this is where I think
• 3:16
  that we'll see Asia Pacific go past North America and Europe in
• 3:20
  terms of as, as a region in terms of retail media in
• 3:23
  Australia, retail media is scaling quickly, but it's still
• 3:26
  nascent. It's still at the beginning and
• 3:27
  and SCA, you know, it's really scaling really, really quickly.
• 3:32
  And then you've got these other early stage high growth
• 3:34
  potential. Mar.
• 3:35
  So India, we haven't even talked about India yet.
• 3:37
  And that is small and early stage.
• 3:40
  But as you can imagine with the scale of India and you think
• 3:43
  how, you know, India is going to be bigger than China and we've
• 3:46
  only, we only just, it's only just starting there.
• 3:49
  Yeah. And then we look at places like
• 3:50
  the Philippines and Vietnam, which are having, are having,
• 3:53
  you know, huge economic growth in those markets.
• 3:56
  They're youth markets, they're very well connected.
• 3:59
  So we're going to see some massive and big populations too.
• 4:01
  So we're going to see some pretty significant growth in
• 4:04
  that region. And I would suspect in the next
• 4:06
  5 years, the dominant retail media region in the world will
• 4:09
  be Asia Pacific. So that's our first point.
• 4:12
  OK. And I think.
• 4:13
  It's when I we, I mean, if China is 30 for 7% and the US is 40%,
• 4:18
  look out the rest of the world when these other markets come on
• 4:20
  stream because it's going to be big, big, big, big.
• 4:23
  The second thing I'm going to talk about is shopping malls and
• 4:26
  shopping malls in Southeast Asia.
• 4:28
  Now, Southeast Asia shopping malls are real destinations and
• 4:33
  a sense of culture, dining, entertainment.
• 4:37
  But what we're finding really, and that's a lot to do with
• 4:40
  temperature, that's a lot to do with the way lifestyle is in
• 4:43
  these markets because it's, it's most time it's pretty hot.
• 4:45
  So they're quite nice and cool and air conditioned.
• 4:47
  But one of the things we're starting to see is a real
• 4:50
  separation of Thailand from the rest of the region and Thailand
• 4:55
  in a country with both scale and maturity.
• 4:59
  So if I look at on this graph here, I want to talk a little
• 5:01
  bit about what sets them apart because because Bangkok is the
• 5:05
  epicentre of shopping malls in Southeast Asia.
• 5:09
  So when I talk about if you go to Southeast Asia and start to
• 5:13
  look around in terms of in terms of malls, you've got Icon, Sam,
• 5:17
  your MBK, you've got Central Group in Thailand, also a big
• 5:21
  conglomerate who are running malls.
• 5:22
  So these malls are amazing. You know, the there's
• 5:25
  entertainment options, there's dining options.
• 5:28
  They are real centres of the world for this.
• 5:30
  And and what if you go and have a look at some of these malls
• 5:33
  websites, when you have a look at the you know, it, it'll take
• 5:35
  your breath away. Yeah.
• 5:37
  But in terms of I just wanted to plot this because it sort of
• 5:39
  gives you a bit of a sense of where they are.
• 5:41
  And Thailand I when I speak to people in sort of Korea,
• 5:44
  Thailand, Korea, China, Japan, they see Thailand as the tipping
• 5:50
  off point. You they see it as the
• 5:51
  experiential mall capital of Southeast Asia.
• 5:55
  You know, this is where, you know, big malls, big flagship
• 5:58
  shop stores are. And Thailand really as in
• 6:01
  Southeast Asia now leads the way in terms of retail tourism of
• 6:05
  the six Target missions. For me, if you look at this,
• 6:09
  this, this, this little more maturity curve in into the is
• 6:12
  indicative I found online, but it sort of reflects the values
• 6:16
  in terms of. So it on the on the on the on
• 6:19
  the vertical axis, it's asset quality and experience, yeah.
• 6:23
  And, and on the and on the horizontal axis it's scale and
• 6:27
  pipeline and growth, right. And So what we're seeing here is
• 6:31
  on the top left hand corner, you can see Singapore, which is, has
• 6:34
  amazing assets in quality. And quite often it's off the
• 6:36
  scale as you can dwell over 9, but Singapore only has a
• 6:40
  population of 5 million people. So it's, it's, it's tapped out
• 6:45
  pretty much. And you've got to start saying
• 6:47
  where does the point where infrastructure right exceeds
• 6:52
  population in terms of the cost per person in and cost per
• 6:56
  person living there. And, and, and also in terms of
• 6:59
  retail tourism, it's pretty much tapped out.
• 7:02
  But then you come over to the down the bottom here and you can
• 7:04
  see we've got huge growth opportunities.
• 7:07
  Malaysia obviously is about 35 million people.
• 7:10
  It's got obviously a fair ways to go to cash up to Singapore in
• 7:13
  terms of asset and experience. But we've got this it's pipeline
• 7:17
  of growth. Then we've got those Asian
• 7:20
  nations on the bottom with big populations, Philippines,
• 7:22
  Vietnam and then obviously course Indonesia.
• 7:24
  These, these are where they've got, you know, patchy malls.
• 7:27
  I mean, if you look at, if you look at someone like lattes are
• 7:31
  mall in, in Vietnam, it's mind blowing.
• 7:34
  It's like it's reflecting what malls are in, in, in Korea and
• 7:37
  in Thailand. But they're, they're up and
• 7:39
  down. They're they're, they're
• 7:40
  variable. The Philippines quality is
• 7:42
  generally quite low, but that's, but the, with their population
• 7:46
  sizes, the ability to, to grow and create more malls and more
• 7:49
  developments. There's, there's a lot of
• 7:51
  development going on in these markets because their population
• 7:53
  supports it. And with Asia, with Southeast,
• 7:57
  with Asia Pacific's population, you know, there's 303 point 5
• 8:01
  billion people joining the middle class in this decade.
• 8:04
  You know, these there's, there's huge potential and pipeline of
• 8:07
  work. But then we've got Thailand.
• 8:09
  Look at that. And that's an outlier top right.
• 8:11
  You know, the dream quadrant, if you will.
• 8:13
  Now they've got amazing asset and quality, but they're still
• 8:17
  because they've topped into quality.
• 8:20
  They really aren't. They really have.
• 8:22
  They've still got more, much more growth.
• 8:23
  Thailand is 60 million people. Bangkok is a city of 15,000,000
• 8:27
  people. It's a mega city, right?
• 8:29
  You don't you don't travel between 9:00 and 8:00 and 10:00
• 8:31
  in the morning and four and six in the evening because it's
• 8:33
  impossible to get around. There's so many people.
• 8:35
  So you've got a population supports this and also a more
• 8:39
  operators. You know, like I said, icons,
• 8:42
  MBK Central Group are delivering unbelievable development
• 8:46
  experiences. Yeah.
• 8:47
  And, and if you are going on a shopping tour in Asia to go and
• 8:52
  see iconic global brands and flagship retail, Thailand is
• 8:57
  your place. Got you.
• 8:58
  It will blow your mind. And so, well, people think about
• 9:02
  white sandy beaches in Thailand and, and temples and, and, and
• 9:05
  those sort of things like don't, don't forget the shopping malls
• 9:08
  in Thailand. Believe me, they will blow your
• 9:10
  mind. So a little bit about shopping
• 9:12
  malls in in Southeast Asia. Perfect.
• 9:15
  Thank you. OK, well listen, I will let you
• 9:17
  crack on, finish the show and I look forward to doing this again
• 9:22
  with you next week. Absolutely.
• 9:24
  In two weeks time, what will we will be civil casting live from
• 9:27
  NRF Europe. I know we will.
• 9:30
  I'll be I'll be a bit. We'll have you there, we'll have
• 9:32
  Jill there and we'll have Alexander there.
• 9:35
  Alexander is my EU correspondent and so.
• 9:39
  Maybe we could do A5. Maybe we could do a 5 things
• 9:43
  Friday. Global.
• 9:44
  Edition. Fine.
• 9:45
  Global edition, Just a one off special edition, yeah.
• 9:48
  Absolutely. NRF Europe, I think, yeah.
• 9:51
  So she'll be busy and so she'll be in hometown.
• 9:54
  So yeah, I think, I think if we can, that would be fantastic.
• 9:57
  Let let me see if I could talk to the NRF crew in Europe and
• 10:00
  see if we can get the mainstage and see if we can get quite some
• 10:02
  quality time on the curve. Actually we can do the NRF
• 10:05
  payback. Correct.
• 10:06
  Let's do that. I'll I'll let let let me work by
• 10:09
  work my magic and see what I've had shared here.
• 10:11
  Yeah, I'll say. Well, I'll hold you to that
• 10:12
  mate. Don't worry, I can be very
• 10:14
  persuasive when I need to be. Alright.
• 10:16
  Thank you. Alright, thanks mate.
• 10:19
  Thanks Reef. So let's crack on with the three
• 10:22
  other major news stories across the region, and we start with
• 10:26
  Uni Glow. Uni Glow is deepening its
• 10:29
  commitment to sustainability through its recycling fibres and
• 10:33
  turning them into new garments, which we've got to love, right?
• 10:36
  Polyester made from used plastic bottles is already in many core
• 10:41
  lines and recycled down from old jackets, and it's being reused
• 10:45
  in fresh collections. And it's not just APR move, it's
• 10:49
  part of the fast retailing 2030 climate road map.
• 10:54
  For shoppers, it means that sustainability is no longer a
• 10:57
  niche option, but increasingly woven like into the very basics
• 11:03
  that they buy a season after season.
• 11:06
  Moving on next from South Korea we have Muzinza, the country's
• 11:11
  dominant online fashion platform.
• 11:14
  It's stepping into a bigger stage by strategically
• 11:18
  partnering with Anta Sports, one of China's most popular
• 11:22
  authentic wear companies. The collaboration gives MU Xin
• 11:26
  SA something it has long wanted, a clear path into the vast
• 11:31
  Chinese market. With Anta's retail network and
• 11:34
  cultural footprint, Resinsa can bring K Fashion to a consumer
• 11:39
  base that is both massive and Ben driven.
• 11:44
  This deal reflects A wider theme.
• 11:47
  K Fashion is no longer content with regional success.
• 11:51
  It's aiming for a mainstream adoption in the world's largest
• 11:55
  battleground. I think this then this deal
• 11:58
  reflects A wider theme. K Fashion is no longer just
• 12:01
  content within within regional success.
• 12:05
  It's actually a brand that is expanding globally within the
• 12:10
  verticals that they operate, whether that's culture, whether
• 12:13
  that's beauty and that's fashion.
• 12:14
  And I think this is a great example of that continued
• 12:17
  expansion. And finally, China's Revivo is
• 12:20
  making headlines again, and that's because it takes fast
• 12:23
  fashion globally. Already dubbed as China's answer
• 12:26
  to Zara, the brand is opening new flagship stores in London,
• 12:30
  Singapore and Dubai with more destinations on the horizon.
• 12:34
  Unlike some Chinese said is that mainly target their domestic
• 12:37
  market, Urban Revivo is positioning itself as a global
• 12:42
  trend setter. It's formula is sharp, runway
• 12:45
  inspired, designs are accessible, prices delivered at
• 12:49
  speed. If successful, Urban Revivo
• 12:52
  could join the ranks of the global fast fashion giants and
• 12:55
  shift perceptions of Chinese retail from follower to leader.
• 13:00
  Together, I think these three stories highlight the diversity
• 13:04
  of Asia's retail momentum. Uniglow shows how Japanese
• 13:08
  leaders are embedding sustainability into their
• 13:12
  businesses. Mazinsa underscores Korea's
• 13:15
  growing cultural and commercial influence.
• 13:18
  And Urban Revivo signals China's push to export not just
• 13:22
  products, but brands with global staying power.
• 13:24
  And I think the message is clear, and it's one that you
• 13:27
  hear from Reef time and time again.
• 13:29
  Asia Pacific isn't just shaping the future of retail, it's
• 13:32
  setting the pace. And with that, thank you so much
• 13:35
  for giving me your time and ears for today and I look forward to
• 13:40
  being back with Reef and the team next week.