The Asia Pacific region dominated new openings for luxury retail in 2024, with a sharp uptick in Southeast Asia, particularly Thailand.

Data from Savills Research show that 65% of all new luxury retail stores opened last year were in the Asia Pacific region, with 40% in China, 24% in Asia ex-China and 1% in Australia and New Zealand.

The Asia Pacific region continues to generate wealth and thus new customers for luxury brands in the region’s key markets and in newer destinations.

While the outlook for this year is uncertain due to the global trade and political environment, the 2024 data demonstrate the strength of this region and its growing diversity. China remains the largest luxury retail market by far but Tokyo, Singapore and Hong Kong were also in the top list of cities for new stores, albeit these new openings were based on brand sentiment in 2022 and 2023. More recently, confidence has softened in the wake of slowing luxury sales.

Meanwhile, looking at smaller ‘destination’ cities, Asia dominates again, with Bangkok, Seoul, Ho Chi Minh City and Osaka at the top of the rankings. Bangkok was the most visited city in the world last year, with 32.4 million visitors. Luxury brands Dior and Louis Vuitton have invested significantly into Bangkok with the opening of Dior Gold House (pictured above) and LV The Place Bangkok.

The Thai capital has been gaining attention from a wider variety of luxury brands, attracted by its relatively under-served domestic population and international visitor appeal. New luxury hotels constructed in the past decade have boosted the city’s appeal.

While China accounted for the lion’s share of global luxury store openings in 2024 and saw openings rise 10% on 2023, its share of total openings declined and activity was focused on larger cities. “Several major brands have been closing stores in China while consolidating and focusing on key markets,” says Kelly Cheng, Director, Cross Border at Savills Asia Pacific.

Consolidation into the best locations is also happening in Hong Kong, with luxury retailers upsizing in some areas, boosted by retail rents which have fallen 34% since 2019. Nonetheless, retail rents in the core Tsim Sha Tsui district are still the highest in the world, ahead of Madison Avenue, Bond Street or Ginza.

Savills expects consolidation and concentration to continue to be trends in 2025. This means a focus on the best addresses and the most affluent districts. Core cities with international reach, such as New York, London, Paris, Milan and Tokyo will continue to see competition for the best locations and retailers will invest in building quality. Similarly, brands will focus on their most important customers.

With softening consumer sentiment in both China and the US, the rest of 2025 is set to be challenging, however the best locations and under-served markets with growing affluence will continue to thrive.

Further reading:
Savills Global Luxury Retail Outlook 2025

Contact us:
Kelly Cheng