Asian online retail market will be a leader by 2025
According to a new study by Knight Frank on the distribution of wealth in the world of Wealth Report, in seven years the global warehouse market will undergo global changes.
In 2017, investments in industrial and logistics property amounted to more than $ 126 billion, which allowed experts to talk about doubling investments in the industry over the past five years. Dynamic capital growth is primarily provided by online retail.
Online shopping stimulates demand for modern distribution facilities. Lack of storage space in Europe provokes rent growth.
But a leap is expected in Asian markets. According to a published study, Indonesia will become one of the centers of electronic commerce: in 2015, the turnover amounted to $ 1.7 billion, by 2025 they will show growth by 27 times. Significant growth is expected in other countries of Southeast Asia. The absolute driver here is China, which has become the “workshop of the world" in recent decades and has accumulated leading innovative industries on its territory. However, the main goal of the Celestial Empire now is not so much the continuation of capacity building as competition with the whole world in the field of the latest technologies. It is for this reason that more and more money is pouring into high-tech industries in China.
Experts, in addition, suggest that in the coming years throughout the entire region of Southeast Asia, demand for modern logistics warehousing will be growing everywhere near transport interchanges and urban centers. This is facilitated by huge infusions from the giants Alibaba and Tencen, who are currently actively engaged in the implementation of cross-border payment solutions.
Moreover, the active introduction of the Chinese initiative “One Belt, One Way”, the essence of which boils down to creating a new format of international cooperation, primarily in the interests of the Celestial Empire, also plays a role in favor of the Asian online retail market. Given the fabulous sums currently being invested in transport links between countries, it can be assumed that in the near future, experts will observe the movement of low-cost industries in the African and Asian regions.
However, analysts at Knight Frank also warn of possible negative scenarios for the development of the economy of the Asia-Pacific region as a result of the trade war unleashed by Washington with China. The company notes that many businessmen are already thinking about the consequences of deteriorating relations between the powers, and so far the only possible option to avoid tariff charges is outsourcing or offshoring.
