POP MART(HK:09992) EY·2025-04-28 06:15Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The global retail market is undergoing significant transformation, with a projected market size of $30.6 trillion by 2024, growing at an annual rate of 3.76% [4][6] - The Asia-Pacific region, particularly China, India, and Japan, is expected to be the fastest-growing market, accounting for 40% of global retail sales by 2028 [4][6] - E-commerce is significantly reshaping consumer behavior, with online retail sales expected to account for 21% of total retail sales by 2025 [4][10] - Local brand internationalization is a growing trend, with Chinese brands like Pop Mart and Heytea expanding globally through strategic partnerships with shopping centers [4][11] Summary by Sections 1. Introduction - The global retail market is experiencing profound changes, driven by middle-class expansion, rapid urbanization, and internet penetration [4] - Shopping centers are becoming crucial partners for brands looking to expand internationally, providing localized support and innovative marketing strategies [4] 2. Understanding the Global Retail Market - The global retail market is projected to reach $30.6 trillion in 2024, a 4.37% increase from 2023 [6] - In China, the retail market is expected to reach 48.79 trillion RMB in 2024, with online retail sales growing by 7.2% [6] 3. Cooperation Strategy Framework - Shopping centers play a vital role in supporting brand internationalization by offering high-traffic retail spaces and strategic market positioning [18] - Brands face challenges such as identifying the right customer base and establishing local relationships when entering new markets [19][20] 4. Successful Cooperation Case Studies - Pop Mart's expansion into Southeast Asia through partnerships with shopping centers has significantly increased its sales and brand awareness [26] - A luxury brand collaborated with a cultural retail landmark in Hong Kong to create an immersive art retail space, enhancing consumer experience and brand image [29] 5. Multi-Dimensional Marketing Strategies - Shopping centers utilize various marketing strategies, including digital integration, cultural adaptation, and community engagement, to help brands establish recognition in new markets [31][38] - Technology-driven consumer interactions, such as AR and VR experiences, enhance shopping convenience and brand engagement [37][38] 6. Conclusion / Future and Action Recommendations - Shopping centers should continue to leverage their platform advantages to support brand internationalization through innovation and strategic partnerships [44]