Asian

2025
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Foodpanda
Raphael Zennou, VP, Q-commerce

Inside Retail: What are your top three strategic priorities

for 2025?
Raphael Zennou: Firstly, continue to invest in and grow
Foodpanda’s q-commerce [quick commerce] capabilities.
Since the launch of Foodpanda’s first Pandamart cloud
grocery store in Singapore and Taiwan in 2019, we are
now Asia’s largest q-commerce network, with around
130-owned Pandamart cloud stores in 11 markets,
and 45,000 retail partners on Foodpanda shops in all
markets across the region.
Next, meet evolving consumer demands and offer
faster and easier access to everyday items. The launch
of the pick-up feature on Pandamart is an example
of our wider strategy to advance online-to-offline
(O2O) commerce and continue creating new shopping
experiences that address evolving customer preferences.
Lastly, expand partnerships across the region to
collectively offer our customers more choice and
convenience, and quicker access to the items they
need. Just last year, we expanded our collaboration with
Carlsberg to make beverages more accessible to consumers
in fun and fresh ways. This is one of the ways we’re
constantly looking to enhance the shopping experience for
our customers across Asia.

IR: What are the biggest challenges on your radar this year and
how did you navigate them?
RZ: Increased and increasing customer expectations of speed.
Initially, our sense was that customers wanted their groceries
to be delivered in the shortest amount of time, so we made
improvements to our picking processes, such as ensuring that
items in stores are placed in a manner that enhances efficiency,
and better assignment of riders.
However, we realised that customers do not need their
deliveries ultra quick. There have been a number of competitors IR: How do you see the retail landscape in Asia evolving in 2025?
within the online grocery space, but 95 per cent of them have RZ: Customers are looking for more affordable options – players
since exited because they weren’t able to fully adapt to what who listen and adapt will emerge. As consumers increasingly
consumers really want: a comprehensive selection of items, and prioritise affordability and value for money, businesses that
dependable delivery. Now, we’re the only sizable online grocery can adapt by offering dynamic and cost-effective solutions will
store player in the region, simply because we are able to meet probably gain a competitive edge. Additionally, we anticipate
consumer demands. greater integration of digital and personalised experiences as
retailers strive to meet evolving consumer expectations.
IR: What were the biggest highlights of 2024 for the group?
RZ: One of the biggest highlights of 2024 was the launch IR: If you could summarise your strategy in one sentence, what
of our private house label ‘Bright’ across the Apac region. would it be?
Available exclusively on Pandamart, Bright offers more RZ: To deliver variety, speed and convenience to all Foodpanda
than 1000 items across three sub-brands: ‘brightfarms’ customers in Asia.
for fresh produce, ‘brightyums’ for pantry staples, ready-
to-eat meals, snacks and beverages, and ‘brightspots’ for IR: What excites you most about the retail sector in Asia?
household essentials. RZ: With higher consumer expectations, come higher
Every item under the Bright label is the result of in-depth opportunities (and potentially dropouts).
research and rigorous testing to ensure our products are high As consumers’ attention spans get increasingly shorter,
quality and affordable. Bright products are procured directly brands, including Foodpanda, need to constantly innovate to
from suppliers, resulting in cost efficiencies where customers personalise the shopper journey, so consumers are served their
can save up to 25 per cent, compared with non-house preferences without taking too long to search for what they need.
branded products. We also have full supervision of the We’re excited to see how consumer behaviour continues to evolve
manufacturing process and implement strict quality control in 2025, and work together with the other players in the industry to
to ensure consistency in standards. provide what our customers need, when they need it.

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Levi Strauss & Co

Nuholt Huisamen, managing director, Levi Strauss & Co East Asia Pacific

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Inside Retail: What are your top three strategic many incredible partnerships – from our IR: Are there any specific markets or
priorities for 2025? presence at Fuji Rock Festival in Japan, to segments in Asia that you see as critical
Nuholt Huisamen: This year, I’m looking to the collaborations we’ve had with brands growth opportunities?
continue our bricks-and-mortar expansion in the and stores like Clot and Beams. These NH: Across the business, we’ve been
region, especially within the East Apac region. As speak to our ability to understand and focused on accelerating our international
part of our direct-to-consumer focus, we’ve been align with the influences affecting our growth – including in Asia, where we’re
bolstering our retail presence in the region over regional consumers. excited about the emergence and
the past few years – opening new stores and growth of fashion hubs across the region.
upgrading and expanding existing ones to deliver IR: What projects are you looking forward Particularly in the North Asian markets, we
an exceptional retail experience to our customers to working on in 2025? are seeing tremendous success with our
here. In the coming year, I’m excited about NH: I’m thrilled that we’re launching our premiumisation strategy, and the launch
keeping this momentum going with new store Blue Tab line this year – a collection of of our latest Blue Tab line will also be a
openings and revamps in the works at some of our most premium denim offerings that driving force for further growth.
the most exciting shopping locations around the are the embodiment of Levi’s storied Over in Southeast Asia, we see Gen Z
region. timelessness and quality, fused with culture as a key driver of fashion trends,
I’m also focusing on our pivot towards Japanese artisanship, mastery, and presenting a unique opportunity to deepen
becoming a head-to-toe denim lifestyle apparel attention to detail. We’re launching the our market presence and stay at the
brand. While we are well-known for being a line in Asia in February, and our region centre of culture. There is a strong mall
men’s denim bottoms business, as we focus on will be the first in the world to access culture in Southeast Asia, and consumers
winning with women consumers, we can extend it. Premium denim is a natural next resonate with immersive bricks-and-
that authority into categories such as women’s step, borne from our years of product mortar experiences. In line with this, we
apparel and tops. We’re already gaining traction innovation and denim mastery – and I’m continue to prioritise the opening and
in Asia in these categories and will be doubling excited to finally bring this to our fans’ upgrading of our mall stores, such as our
down on this trajectory in the new year. doorsteps in 2025. CentralWorld and KLCC stores in Bangkok
Finally, I’m excited about our premiumisation We are also looking to elevate and and Kuala Lumpur, respectively. The latter
focus in Asia. Our greatest asset is the strength open a number of stores – new and is the largest Levi’s store in Southeast
of the Levi’s brand, and our undisputed existing – across the different markets. Asia. Through these storefronts, we hope
denim leadership. In 2025, we’ll bring this to bring an elevated consumer experience
mastery to life with the launch of our Blue IR: How do you see the retail landscape in to our fans, presenting them the best and
Tab collection – what’s set to be our most Asia evolving in 2025? fullest expression of our brand.
premium denim line to date, and a blend of NH: Today’s consumers are more
Levi’s trademark timelessness with intricate discerning – they are drawn to brands IR: What excites you most about the retail
Japanese artisanship. We know that there’s a not just because of the products they sector in Asia for 2025?
strong community of denim enthusiasts and offer but also because of the values they NH: Asia remains ripe for growth – and
collectors in the region, and our goal is to demonstrate. To meet the demands of what I’ve noticed is that consumers in
bring them truly elevated denim that they can this new generation of consumers, brands the region are becoming savvier and
fully appreciate and make their own for years to need to connect deeply with them, listen more discerning about the brands with
come. to their needs, and adapt to meet these. which they align themselves. The good
This guiding principle has been key news is that this means brands have
IR: What were the biggest highlights of 2024 for to our company’s longevity. For 170 the opportunity to go beyond just being
the group? years, Levi Strauss & Co has weathered sellers of products, to become cultural
NH: The launch of our collaboration with Beyoncé the shifts of multiple generations of influences of their own, with their own
in September was a key moment for us. In consumers. The ability to listen to and sets of principles. This is something
the campaign – fittingly called REIIMAGINE understand the needs of the consumer we’ve already been doing at LS&Co.;
– we re-enact classic Levi’s looks and films, on the ground, and adapt and innovate throughout our 170-year history, we’ve
with Beyoncé as the main protagonist. This with our products to meet those needs, been bold about our values, and we
partnership was a natural progression after has been in our DNA from the beginning. remain rooted in our goal of providing
Beyoncé released her beloved song, “Levii’s From the mining industry during our well-made, timeless classics for our
Jeans”, on her genre-redefining album “Cowboy founding, to international denim fans consumers – for generations past,
Carter” earlier in 2024. today, our consumers are at the heart of present and future.
To me, this collaboration signifies the pairing everything we do. What’s also exciting about Asia’s retail
of two icons. Beyoncé continues to change In Asia, we continue to innovate to landscape is the freedom brands have
the face of music and entertainment, as she bring fans what they want and need. The to innovate and evolve constantly. As
has done over her decades-long career. And prime examples of this approach are Levi’s doubles down on our pivot towards
for us at Levi Strauss & Co; we stay true to our Performance Cool line and Blue Tab becoming a head-to-toe denim lifestyle
our innovative spirit, which has been present Collection. The former was specifically apparel brand, we’ll challenge the notion
throughout our over 170-year history. created to bring our fans lighter weight, of our brand being a primarily men’s
This campaign also signifies how the Levi’s more breathable denim that makes for denim-bottoms business. By bringing our
brand remains at the center of culture. On a a more comfortable wearing experience apparel leadership to other categories, like
global level, we have Beyoncé, who is an icon in tropical climates. The Blue Tab women’s and tops, we have the chance to
the world over. But in Asia, we collaborate with Collection, on the other hand, recognises bring a diverse range of truly well-made,
brands, events and cultural events that resonate market demand for more premium fashion-forward offerings to consumers in
with local audiences. In 2024, I witnessed denim offerings. the region.

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Miniso
Robin Liu, VP and chief marketing officer

Inside Retail: What are your top three

strategic priorities for 2025?
Robin Liu: Miniso has three strategies as its
top priorities for 2025:
• Focus on globalisation and localisation
• Focus on product Innovation (IP design):
Miniso’s goal is for sales of IP products to
account for more than half of total sales
by 2028.
• Focus on affordability: With IP design as
its core feature, Miniso competes globally
through both cost leadership and product
differentiation. While consistently adhering
to the fundamental focus on affordability,
Miniso continues to produce high-quality
IP products.

IR: What are the biggest challenges on your

radar this year and how did you navigate
them?
RL: Challenge: How to combine global
products, channels, operations and
marketing strategies with local market needs
and culture.
Solution: Build a multinational team to
ensure that product design, channels
and operation models, and marketing
strategies can adapt to local market
needs.
In product design, Miniso has
established global innovation centres
in China, the US, Japan, and South
Korea to provide specialised
designs tailored to various markets.
Additionally, Miniso manages
products strategically based on
five key regions: North America,
Latin America, Southeast Asia,
the Middle East, and Europe.
This approach enables the
company to cater swiftly to
the specific preferences and
needs of consumers in each
respective area and across the
globe.
Channels and operations are
customised by market, using
differentiated store types and
operational strategies based on
in-depth local market research to
create unique, regionally suited models.
In marketing, strategies are tailored
to the cultural context of each region,
ensuring brand messages resonate while
reflecting a deep understanding and respect
for local cultures.
Together, this approach exemplifies the
power of global/local integration, throughout
a well-structured global organisation.

PB
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IR: What is one consumer trend you’re largest store, in Jakarta. Since the launch of products accounting for more than 50 per
planning on tapping into? the first Miniso Land in Shanghai in October cent of sales by 2028.
RL: As early as 2020, Mr. Ye Guofu, the 2024, Miniso has expanded Miniso Land into
founder of Miniso, proposed that “interest- many cities in China and Europe. IR: Are there any specific markets or segments
driven consumption” would become the The super IP strategy was further in Asia that you see as critical growth
mainstream trend in future consumption. deepened and implemented in 2024. To opportunities?
By implementing the IP strategy, the date, the company has formed partnerships RL: The goods economy/IP economy
company has led interest-driven with more than 150 world-renowned IPs, represents a growth opportunity. This trend
consumption and emerged as a pioneer in driving sales of IP-related products to revolves around two-dimensional culture
the innovative business model of global IP exceed 800 million. Among these, the two and the fan economy. Grounded in young
collection stores. major IPs, Chiikawa and Harry Potter, have consumers’needs for emotional connection

“
received enthusiastic responses from and cultural identity, it encompasses
consumers around the world. The company merchandise such as figurines, plush
also continues to create and incubate its toys, badges and cards. Over time, it

The customer own IPs – Miniso Dundun and Mini Pen. has evolved into a burgeoning economic
On the marketing front, Miniso sector. Data indicates that from 2023 to

behaviour reflects seamlessly integrates users, products, 2029, the scale of Asia’s two-dimensional
and places through the drivers of IP industry is expected to grow from RMB

a coexistence collaboration, content and users. By 221.9 billion to RMB 590 billion, showing
partnering with top global IPs, Miniso substantial growth potential.

of rational has increased brand visibility and user Additionally, we view pet supplies as
engagement. For content, the brand another highly promising sector.

consumption and employs innovative production and

distribution strategies, supported IR: If you could summarise your strategy in one

interest-driven by advanced digital tools, to achieve sentence, what would it be?

extensive brand reach and stronger RL: Focus on interest-driven consumption,

consumption. user interaction. For users, precise and leverage IP as a distinctive feature,
automated operations have built a robust empower super categories and stores
membership system, fostering super through seamless integration of content
users. These members, along with KOC and users, and build a unique and
IR: What were the biggest highlights of 2024 [key opinion consumers] users, actively efficient brand marketing ecosystem.
for the group? participate in co-creating products and
RL: Last year, Minio achieved milestones content, driving sustained growth and global IR: What excites you most about the retail
across its super store, super IP, and appeal. sector in Asia for 2025?
marketing strategies. RL: Interest-driven consumption: Young
Miniso announced its innovative seven- IR: How do you see the retail landscape in consumers are placing greater emphasis on
layer store matrix at the 2024 Global Brand Asia evolving in 2025? emotional connections and personalised
Strategy Upgrade Results Conference. RL: The customer behaviour reflects a shopping experiences, fueling the rapid
These store formats are based on business coexistence of rational consumption expansion of the “IP economy” and “goods
opportunities and consumption trends and interest-driven consumption. While economy.” Retail brands can address this
playing two primary roles: first, to present seeking emotional resonance with demand effectively through IP-themed
IP scenarios that deepen consumers’ brands and products, they also prioritise stores and innovative consumption
understanding of IP collection stores; cost-effectiveness. This trend is, in fact, scenarios.and innovative consumption
second, to enhance category-specific consistent across the globe. The IP retail scenarios.
experiences and solidify the brand’s position format is a quintessential example of Globalisation: We have seen an increasing
as the first choice for consumers across interest-driven consumption. The global number of great Asian retail brands
all levels and channels. This year, we have IP retail industry, valued at nearly 2 trillion venturing into international markets and
opened many super stores around the RMB, remains highly fragmented. IP design we believe that, in 2025, globalisation will
world, such as the Champs-Elysées flagship retail holds immense growth potential. continue to dominate as a key trend in
store in Paris, France, and the world’s Accordingly, we have set a goal of IP the Asian retail industry. 

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Retailers will no longer leave

AI on the shelf in 2025
Even more of the industry will adopt the technology in the year ahead, as
advances improve everything from customer service to safety.
Mark Micallef, managing director, Southeast Asia, Google Cloud

B
uilding on the momentum of 2024, when many retailers provide customers with detailed product information, facilitating
transitioned from generative AI (gen AI) pilot projects to informed purchasing decisions. This omnichannel approach
live deployments, 2025 will bring deep integration of the will ensure a consistent and personalised experience across all
technology into core retail business operations and scaling across touchpoints.
enterprise systems.
Today, retailers are navigating a challenging environment 3. Conversational AI agents drive commerce growth
characterised by escalating costs, supply-chain volatility, Conversational commerce will experience advancements in 2025,
pricing pressures, and high employee turnover. Simultaneously, with AI agents enabling retailers to engage customers in novel
consumers are demanding increasingly personalised, omnichannel and meaningful ways. These agents will function as digital brand
shopping experiences. Gen AI will help retailers address these ambassadors, assisting with purchases, answering questions, and
challenges, but its successful implementation necessitates even offering style or product recommendations.
a strategic, enterprise-wide approach, instead of isolated, In fast-paced environments like drive-throughs, conversational
departmental deployments. AI will enhance efficiency and customer satisfaction. Quick-
Let’s dive into four trends that will shape gen AI adoption in service restaurants, for example, could deploy AI agents to take
retail in 2025: orders with increased accuracy and upsell based on customer
preferences. These systems not only improve service quality but
1. Multimodal AI unlocks deeper insights and value also unlock new revenue growth opportunities.
Retailers have access to vast troves of data, much of it
unstructured, and this includes product descriptions, images, 4. AI enhances content moderation and safety
customer reviews and in-store video feeds. This unstructured data Retailers will increasingly use AI to ensure safety and uphold
often remains underused by existing AI systems. Multimodal AI, brand integrity. One area of focus will be content moderation.
with its ability to analyse diverse data types in concert, will unlock For example, companies will use AI to implement safety filters
new insights for retailers. that review product imagery, and detect and block inappropriate
For instance, multimodal AI can optimise inventory or non-compliant content before it reaches consumers. This
management by analysing sales patterns alongside supplier proactive quality control mechanism ensures compliance and
communications and customer feedback. It can also enhance fosters customer trust.
marketing efforts by correlating visual trends in product images Beyond content moderation, AI will play a vital role in theft
with purchasing behaviour. These capabilities empower retailers to prevention, fraud detection, and workplace safety. Retailers will
extract actionable insights from their data, and drive efficiencies leverage AI-powered surveillance and analytics capabilities, such
that affect their bottom line. as the solution developed by Singapore-based start-up Lytehouse
to identify suspicious activities in real-time, creating a safer
2. Intuitive search redefines product discovery and personalisation shopping and working environment.
Intuitive search capabilities powered by gen AI will transform
how customers discover products, both online and in physical 5. Data imperative for AI success
stores. Early adopters like Central Retail have already rolled out The adoption of gen AI at scale hinges on a retailer’s ability to use
next-generation conversational search interfaces, which mimic data effectively. A robust data platform, underpinned by advanced
natural human interaction, making it easier for customers to find analytics and business intelligence tools, is essential for unlocking
exactly what they are looking for and receive recommendations for the full potential of AI. Companies that prioritise data integration
complementary products. and accessibility will be better positioned to adapt to market
In 2025, online shoppers will be able to describe desired demands and achieve rapid progress.
products in natural language and receive highly relevant In 2025, retail leaders will be those who can leverage AI to
suggestions. In bricks-and-mortar stores, AI-driven digitisation generate value across their entire enterprise. By focusing on
of the shopping experience will guide customers via interactive scalable solutions, empowering employees with AI tools, and
kiosks or smartphone apps, seamlessly merging online and offline addressing core business challenges, they can lead the industry
channels. Store associates will also leverage intuitive search to into a new era of growth and innovation.

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The magic of
seamless shopping
After tough economic conditions since 2023, economists predict
an uplift in retail spending in a Omnichannel integration is the next
essential step in the digital evolution of retail.
the second half of this year.

Vaibhav Dabhade, CEO of Anchanto

I
n today’s digital age, every brand and expands reach but also builds stronger changes, and foster stronger, more
its competitors are already online, customer relationships and loyalty. personalised relationships with their
whether they realise it or not. The Today, brands face a crucial challenge: customers.
buying process has become inherently balancing their direct-to-consumer (DTC) A shining example of DTC success is
digital, involving online engagement growth with the presence and power Nike. The brand has shown remarkable
at various stages. Customers are of traditional retail channels. Striking growth in its DTC sales, achieving a 20
researching products, comparing prices, this balance is essential for sustained per cent year-over-year increase and
reading reviews, and often making success. Relying too heavily on a single US$5.3 billion in quarterly direct sales in
purchases directly online. This shift channel can expose a business to risks, FY2023. Nike’s transformation highlights
means that even if a brand traditionally such as market fluctuations or changes the growing demand for personalised
thrived in physical stores, its online in consumer behaviour. shopping experiences. The trend toward
presence now plays a critical role in DTC isn’t just about boosting revenue
influencing consumer decisions. The allure of DTC growth; it’s about creating meaningful
The concept of omnichannel Recent years have brought a surge in connections. Consumers today crave
has become indispensable. Selling the adoption of the direct-to-consumer personalised experiences that make
directly on multiple channels is no (DTC) model. This trend can be attributed them feel valued and understood. By
longer a luxury but a necessity. For to the compelling advantages the DTC directly interacting with their customers,
businesses to thrive, they must meet approach offers, including greater brand brands like Nike can gather invaluable
their customers wherever they are – control, enhanced customer experiences, insights, allowing them to anticipate
be it on their website, social media, and the potential for higher profit needs, personalise marketing efforts, and
marketplaces or physical stores. An margins. Managing online sales in-house enhance overall customer satisfaction.
effective omnichannel strategy ensures simplifies operations and opens a direct
a seamless and consistent experience line of communication with customers. Where the omnichannel approach helps
across all touchpoints, catering to the This model eliminates the middleman, While the DTC model offers many
evolving expectations of today’s digital- allowing businesses to better understand advantages, an overemphasis on this
savvy consumers. This approach not only their audience, react swiftly to market approach can present risks. Despite 

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Nike’s impressive digital growth, it made sales and unhappy customers. For source of truth. This enables a unified
the strategic decision to cut ties with half businesses, this lack of synchronisation view of customer interactions, inventory
of its retail partners by 2021, including not only affects customer satisfaction levels, and sales performance across all
key players like Macy’s and Foot Locker. but also hampers overall efficiency and touchpoints, focusing on personalised

“
Relying too heavily on DTC can reduce profitability. experiences across all channels, ensuring
brand visibility and disconnect companies consistent messaging, and providing a
from wider consumer touchpoints. This unified brand experience.
was evident when Nike, recognising the
limitations of its DTC focus, re-established A shining The path forward
collaborations with retail partners in 2024
to strengthen its position. By integrating example of DTC The advantages of an omnichannel
approach have undeniably surpassed the
DTC with a robust wholesale presence,
brands can maximise their reach, success is Nike. benefits of siloed operations. The future
of shopping is here, and it’s all about
enhance customer experiences, and drive omnichannel integration. It provides
sustainable long-term growth. Fulfilment is another critical area businesses with a unified commerce
This is where unified commerce where omnichannel integration can platform – a 360-degree view of their
integrates all sales channels – online, stumble. Delivering on promises like customers – and helps them optimise
physical and wholesale – into a single, same-day shipping requires precise their operations, enhance customer
seamless platform. It enables brands to inventory allocation, real-time updates, experiences, and drive growth. Businesses
provide a consistent customer experience and optimised delivery routes. During that nail this are not just meeting
across all touchpoints and synchronise peak demand periods, such as the holiday expectations, they’re setting the bar higher.
inventory and data across channels season, these challenges become even It takes investment in technology, a deep
for improved efficiency and decision- more pronounced, testing the limits understanding of consumer behaviour, and
making. Companies with omnichannel of supply-chain systems. Intelligent a willingness to innovate.
strategies drive an 80 per cent higher rate optimisation engines can play a crucial As we move forward, the line between
of incremental store visits. The benefits role here, ensuring that products are online and offline shopping will keep
are clear: better customer retention and delivered from the right source in fading. Retailers need to offer a cohesive
satisfaction, more effective inventory accurate quantities. This technology experience across all touchpoints. This is
management, and cross-channel analytics helps maximise profits, minimise costs, what keeps customers coming back and
that enable smarter decision-making and and meet service-level requirements, sets companies apart in a competitive
personalisation. ultimately enhancing the customer market.
These advantages are evident in the experience and maintaining operational Omnichannel integration is not just
success of brands like L’Oréal, which has fluidity during even the busiest times. a strategy; it’s the future of shopping. It
achieved remarkable success by adopting Addressing challenges like siloed is about creating a seamless, magical
a balanced approach. While Nike faced operations requires a collaborative shopping experience that meets the
challenges, other brands, like L’Oréal, have approach. Service providers can play a needs of today’s savvy consumers. Those
achieved remarkable success by adopting crucial role by assisting businesses. For who master it will lead the way, delivering
a balanced approach. L’Oréal combined example, integrating data and systems unparalleled customer experiences and
DTC with strong partnerships with retailers, across all channels to create a single setting new industry standards. 
particularly in Asia. The brand invested in
advanced operational capabilities, including
real-time inventory synchronisation, strong
marketplace connectivity and enhanced
order management systems. This hybrid
model has paid off for L’Oréal, with
e-commerce accounting for 27 per cent of
total sales and €11.2 billion in e-commerce
sales for 2023, its annual reports show.
L’Oréal’s e-commerce business grew by
9.5 per cent, highlighting the success of an
integrated strategy that combines digital
direct sales with retail partnerships.

Overcoming challenges
In today’s competitive retail landscape,
disjointed channel operations can hinder
growth opportunities, limit the ability to
offer innovative delivery options, and make
it difficult to optimise fulfillment costs.
Implementing an omnichannel approach
allows brands to reach a wider audience
and enhance customer experience,
whether online or in-store, but it does
come with some disadvantages, like the
prevalence of siloed operations, where
data and processes remain disconnected.
Imagine the frustration of a customer
who finds an item available online, only
to discover it is out of stock when they
try to pick it up in-store. This disconnect
between online inventory systems and
physical store stock can lead to missed

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The Great Return:

Retail’s curious journey
back to tradition
“For out of old fields, as men saith,
Cometh all this new corn from year to year;
And out of old books, in good faith,
Cometh all this new science that men learn.”
– Geoffrey Chaucer
Kristoff D’oria di Cirie, immersive retail expert & co-founder of Insogni Studio

I
n the narrow streets of Tokyo’s malls. Singapore’s shophouses fetch ornate excesses of Baroque and
Yanaka district, among the premium prices that their skyscraper Rococo, emphasising rationality,
shophouses of Singapore’s Blair neighbours can’t match. stability and democratic ideals.
Plain, and within the intimate passages This isn’t just about aesthetics. These Focus: Symmetrical designs in
of Paris’s Marais neighbourhood, an historic districts succeed because government buildings and public
unexpected revolution is taking shape. they offer what psychologists call monuments that promote civic
After decades of pursuing novelty at any ‘environmental authenticity’ – a sense virtue, order and timeless elegance.
cost, the retail world is rediscovering of place that feels real, rooted and • The Gothic revival (1800-1840)
something rather obvious: People prefer historically continuous. They provide an Trigger: Rapid urbanisation and
spaces that feel real. antidote to the peculiar placelessness industrialisation.
For years, we’ve been told that that characterises so much of our Context: Nostalgia for medieval
retail’s future lay in sleek minimalism, modern experience. spirituality and craftsmanship, seen
digital integration, and what designers This pattern of return to tradition isn’t as antidotes to the alienation of
rather pretentiously call ‘frictionless new. History shows us clear waves of mechanised life.
experiences.’ How curious, then, that revival movements, each emerging as a Focus: Pointed arches, intricate
the most successful new retail ventures response to periods of rapid change. details, and natural materials in
often look remarkably old. • The Renaissance (14th-17th Century) ecclesiastical and civic architecture.
Trigger: The rediscovery of ancient • The arts and crafts movement
The problem of placelessness Greece and Rome, catalysed by the (1880-1910)
Modern retail developments aftermath of the Black Death and a Trigger: The dehumanising effects of
across major cities have become rejection of religious supremacy. mass production.
indistinguishable - identical brands, Context: A post-Middle Ages Context: A call to restore dignity
surfaces, and luxury aesthetics from intellectual rebirth inspired by to labour through the use of
Shanghai to Singapore. This ‘thermic Greco-Roman ideals and the rise of honest materials and traditional
everywhere’ phenomenon creates humanism, emphasising the potential craftsmanship.
generic spaces that could exist of the individual and secular thought. Focus: Handcrafted designs
anywhere, trading distinctiveness for Focus: Proportion, harmony and celebrating simplicity, history and
uniformity. civic pride in art and architecture, regional vernacular styles.
The irony is rather striking. While epitomised by masterpieces like • Postmodernism (1960-1990)
developers have spent fortunes creating Brunelleschi’s Florence Cathedral. Trigger: Reaction to the homogeneity
these placeless places, the most • The revival of Neoclassicism and austerity of modernism.
valuable retail streets in virtually every (1750-1850) Context: Wealthy consumer societies
major city remain the historic ones. The Trigger: Political revolutions (for embraced ornamentation, irony and
Marais commands higher rents than example, American and French) and eclecticism.
La Défense. Kyoto’s traditional machiya Enlightenment ideals. Focus: Playful, bold designs that
shopping streets outdraw its modern Context: A reaction against the combined whimsy with historical 

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references, celebrating plurality in The Buly phenomenon: A case study in seen the chart of luxury brands trading
architecture and design. tradition their once-characterful logos for generic
Historically, times of rapid economic When Officine Universelle Buly was sans-serif Helvetica clones; retail spaces
and demographic upheaval – like the revived in 2014, its founders made what must resist this homogenisation. Instead,
mass urbanisation of the Industrial seemed a mad choice: They rejected every they should embody a specificity that
Revolution or the suburban migration convention of modern retail. Instead of feels inextricably tied to both their brand
after World War II – have sparked a turn minimalist shelving and digital displays, identity and their surroundings.
toward revivalist design. These movements they created meticulous re-creations of • Human size: The mega-mall is becoming
look back to imagined periods of stability, 19th-century apothecaries, complete with less interesting. Future retail venues will
offering comfort and familiarity in a world hand-carved wooden cabinets and marble give intimacy and discovery top priority over
transformed. counters. mere size. Imagine a busy market street full
In 19th- and 20th-century Europe Every detail reflects meticulous of human interaction and discovery instead
and the US, technological change and craftsmanship. Staff create handwritten of the austere sprawl of a contemporary
population surges often disrupted calligraphy labels, wrap items in marbled shopping centre. Smaller, layered
traditional ways of life, leaving people paper with wax seals, and print receipts settings provide a feeling of place lost in
searching for a sense of continuity and on ornate paper – all remarkably labor- larger complexes – and inspire greater
human scale. Formal revivals emerged as a intensive in our digital age. involvement.
response, often flourishing 20 to 30 years Yet from a single Paris store, Buly has • Vernacular rebirth: Reinterpreted for
after the peak of disruption, when new expanded to over 25 locations worldwide. modern retail, regional architecture is
social groups gained the means to shape In a market saturated with identical about to take the stage. Leading the way
their surroundings in ways that reflected minimalist boutiques, their attention to already are Japanese firms, combining
their longing for rootedness. historical detail and craft has created modern design with traditional elements
something unique – not just a shop, but a like shoji screens and tsubo-niwa
The psychology of return complete transportation to another time gardens. These areas remain useful for
Why do we consistently return to and place. modern needs yet seem anchored in their
traditional forms during periods of rapid surroundings and provide an experience
change? The answer lies in how our brains The digital paradox connected with local history and culture.
process space and experience. Research Our increasingly digital lives intensify • Storyliving design: Retail is becoming
shows that traditional environments, our desire for authenticity. We spend something in which people participate.
with their natural materials and human over seven hours daily on screens amid Spaces will let patrons live stories, not
proportions, align with our innate sense constant notifications, leading to what only tell them. This method transforms
of scale and place. These spaces speak to psychologists term environmental shopping into a kind of cultural
something deeper than mere aesthetics. exhaustion – a state of perpetual interaction, whereby the act of purchase
They engage what neuroscientists call our distracted attention. becomes secondary to becoming part of
embodied cognition, the way our bodies and In response, physical spaces that feel a bigger story. It’s about inviting them to
brains together make sense of the world. genuine and human-made are taking embrace a lifestyle, not just pushing a
Generation Z, in particular, seeks on new meaning. The more time we good.
comfort in these spaces, not from simple spend in pixelated worlds, the more we • Custom with value: Future prosperity
nostalgia (How can one be nostalgic for a seem to long for places with weight and comes from combining modern utility
time one never knew?), but as an anchor substance – spaces that remind us what with classic forms. This strategy is about
in an increasingly uncertain world. These it feels like to exist in a world built by establishing places that honor legacy
young consumers, who have never known hands, not code. while attending to present needs, not
a world without screens, show a marked about nostalgia. Companies like Buly
preference for physical spaces that feel The future is in the past show this harmony by adding history and
authentic and rooted. Looking toward 2025 and beyond, this workmanship to spaces as useful as they
This preference isn’t arbitrary. Traditional return to tradition will manifest in several are aesthetically pleasing.
retail environments tend to follow what distinct ways: • Implementation counts: One pays
environmental psychologists call natural • Hyper-specificity: Tomorrow’s most a price for authenticity. Creating
proportions – relationships between successful retail spaces will abandon place-specific, meaningful landscapes
height, width, and depth that our brains the blandness of the international style calls for more work and money than
have evolved to process easily. in favor of intense local character and copying global design. Nevertheless,
The complexity of traditional unmistakable distinctiveness. The stores the benefits are indisputable. Well-
ornamentation, far from being mere that thrive will be those that feel rooted designed environments show that the
decoration, provides the kind of visual in their particular location, drawing investment pays off both financially and
information our pattern-seeking minds deeply on local architectural traditions in brand equity, since they promote better
crave. and cultural patterns. We’ve all probably consumer loyalty and cultural relevance.

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China’s luxury market

is easily misunderstood

Success in this maturing, normalising space in the year

ahead requires seeing the smokescreens to grasp the true
causes of consumer behaviour shifts.
Jacques Roizen, managing director, China Consulting at Digital Luxury Group

C
hina’s luxury market was at the Market dynamic reality The international perspective
centre of many conversations The real-estate sector’s ongoing Chinese consumers are, first and
in 2024. And the conventional challenges undeniably continue to foremost, progressively returning to
wisdom about the market keeps affect consumer confidence. Chinese pre-pandemic patterns, when about
swinging between extremes. While many consumers aren’t losing interest in two-thirds of luxury spending took
analysts and leading consulting firms luxury, however, they’re getting smarter place outside mainland China. This isn’t
speculate about a 20 per cent decline about their purchases. This behavioural market weakness, it’s normalisation.
in 2024 being the bottom, the reality is shift reflects market maturation rather In 2023, that number grew 31 per cent,
more complex and nuanced than most than decline, a crucial distinction that and in 2024 its estimated growth was
reports suggest. many analysts miss. 37 per cent. The most overlooked

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fact? Chinese consumers’ global luxury exit these platforms but to enrich brand critical reasons. First, it refocuses brands
expenditure surged 52 per cent in 2023, presence with deeper storytelling and on their core luxury value proposition.
precisely when the slowdown narrative authentic brand experiences to manage Second, it’s the only way to remain
began emerging. This disconnect exists the online and offline new customer relevant to high net worth individuals in a
because most analysts focus solely on acquisition potential of these platforms, challenging economy that disproportionately
mainland China performance instead as opposed to keeping a pure online impacts the middle class.
of watching global Chinese consumers’ revenue generation focus.
revenue. Looking forward
The resilience of Chinese tourists Omnichannel excellence The Chinese luxury market of 2025 will
has been crucial in preventing a bigger With a majority of luxury purchases in reward brands that can navigate these
downturn in the global luxury goods China influenced by digital channels, complexities with sophistication and
sector. This geographic redistribution sophisticated omnichannel strategies patience. While the era of effortless
of spending requires brands to adopt are essential. Brands must leverage double-digit growth may be over,
more sophisticated global strategies and digital platforms not just for sales, but substantial opportunities remain for
demands a more holistic view of Chinese as critical brand-building touchpoints. A strategic brands. Success will come to
consumers’ contribution to the global strong online presence should enhance those who can balance market realities
luxury market. This is precisely why, offline desirability, creating a cohesive with brand elevation strategies.
despite a slowdown inside China, leading and engaging customer journey across all The fundamental desire for luxury
brands like Chanel, Louis Vuitton, Dior or channels. remains strong among Chinese
Loewe actually invested more in China in consumers. The key lies not in reading
2024. In 2025, leading brands will further Promotional strategy refinement the market as either bullish or
demonstrate that they understand that While luxury brands should stay on Tmall bearish, but in executing sophisticated
regardless of where Chinese consumers and JD, and refine their storytelling strategies, combining market
spend, marketing to them will take place presence on those platforms, it’s true understanding with effective brand
in China. The brands that don’t will pay that they will have to walk away from elevation. While the path forward may
a price in mainland China, of course, but participating in online festivals that are be more complex than in previous years,
also in Tokyo, Seoul, Hong Kong, etc. focused on promotions and discounts. the rewards for getting it right remain
While these online promotions may substantial in what continues to be one
Digital evolution and platform strategy drive short-term sales, they risk eroding of the world’s most important luxury
Global luxury headquarters continue brand equity. Brands must develop more markets.
struggling with a fundamental challenge: sustainable approaches that preserve The year ahead in this market presents
maintaining control while balancing that their luxury status while meeting revenue both challenges and opportunities.
with allowing their China teams to adapt objectives. This is particularly crucial Brands that succeed will be those that
to local market rules. Most luxury brands during major shopping festivals, when can maintain their luxury positioning
maintain a presence on Tmall and JD, maintaining brand integrity becomes while adapting to new market dynamics.
but many are questioning whether they increasingly challenging, as traffic surges This requires a delicate balance of
should be featured on platforms known mean the brands have an even greater preserving brand equity while meeting
for large discount festivals. This thinking risk of hurting value perception. consumers where they are – both
reveals a fundamental misunderstanding In 2025, many luxury brands will physically and digitally – with compelling
of these platforms’ role. realise their current approach to Chinese propositions that justify luxury status.
While Tmall and JD can generate marketplaces needs revision. Market Understanding this market evolution
online revenue, this isn’t their primary leaders will maintain their presence while isn’t just about adapting to change,
value for luxury brands. These platforms maximising impact on brand awareness it’s about embracing the opportunity
serve as essential gateways for new and desirability, moving away from to elevate brand positioning and
customer acquisition and rich storytelling promotional strategies that compromise deepen connections with increasingly
opportunities. The Boston Consulting luxury positioning. sophisticated Chinese luxury consumers.
Group has stated that 80 per cent of Those who get this right will find that
offline luxury purchases start with visits Brand elevation: the strategic imperative China remains not just a key market, but
to these marketplaces or RedNote Brand elevation isn’t just a strategy in a driving force in shaping the future of
(Xiaohongshu). The goal shouldn’t be to today’s market, it’s a necessity – for two global luxury. 

26 ASIAN RETAIL OUTLOOK 2025 www.insideretail.asia