Jones Lang LaSalle: Online Shopping Affects Shop Rental

Hong Kong’s online shopping has grown stronger. Jones Lang LaSalle believes that it has an impact on the retail model, but it has a low relationship with the traditional shops.

Online shopping growth hard to replace the physical store

Jones Lang LaSalle pointed out that according to statistics from the TDC, online sales rose at a CAGR of 15.1% from 2011 to 2016; according to a survey conducted by Jones Lang LaSalle recently conducted by retail market participants, similar With regard to the degree of optimism, 72% of retailers and 90% of owners surveyed believe that online sales will increase significantly in the next five years.

Ma Anping, head of Jones Lang LaSalle’s Hong Kong research department, said that retail brands are expected to strengthen online sales. To narrow the price gap between online and offline stores, physical store retailers can implement more value-added services, including experiential Retailing, etc., attracts guests into the physical store, thus transforming the retail model, but physical stores are still needed.

The director of the Hong Kong branch of the retail department, Cheng Yan-kwan, believes that advanced information technology can help brands sell online, but it is still difficult to replace physical stores; rents in Hong Kong rise and fall mainly due to unemployment, spending power, and visitor numbers in Hong Kong. And so on, even if online shopping is prevalent, the impact on the rental of shops is relatively minor.