Deep Dive: Future Proofing Department Stores in Asia—Part 1

Executive Summary

In this first report of our Asia Department Store series, we explore how the department store industry in Asia needs to evolve to navigate through the myriad of challenges currently facing the industry.

• Here in Asia, department stores are in need of an overhaul—the result of brand homogenization, their lack of appeal to younger consumers and channel shifts to e-commerce and fast fashion. What actions managements take will have a significant impact on how department stores fare in the longer term.
• While Asian consumers cannot be lumped into one group, there are some common traits that define them in general: they are increasingly urbanized, digitally savvy and are constantly searching for personalized experiences and convenience.
• The department store of the future will make extensive use of retail technology as a means to increase store productivity, the store will come in all shapes and sizes, and provide an immersive shopping experience and a community for consumers.
• This report sheds light on how department stores throughout Asia are innovating to cope with the new norm in retail, with extensive case studies on China, Japan, Korea, Thailand, Vietnam and Indonesia.