As conflicts and disruptions pose greater challenges to the world economy, it is necessary for retailers in Asia to seize opportunities to remain resilient and move forward.
The topic was one of the main focuses on the first day of the NRF 2026 Apac edition. Following two highly successful years, the big event returns to Singapore from June 2-4, bringing together over 11,000 retail professionals and up to 2500 brands from 80 nationalities. This year’s theme, ‘The Next Now,’ captures the urgency and opportunity facing Apac retailers today.
“The Apac market is massive and growing incredibly fast,” said Jill Dvorak, SVP of the NRF. “Apac is set to overtake North America as the world’s largest consumption region, reaching US$36 trillion by 2035. The number of affluent households in Apac is forecast to grow at six times the rest of the world between 2025 and 2029.
“Consumers are digitally native, and the tech adoption rates are far ahead of global averages. Spending growth is being driven by e-commerce, AI, and the rise of local brands in all of these markets.”
Opportunities amid challenges
While there is a lot of potential for growth, the region, like the rest of the world, has been facing multiple challenges.
“The global environment is particularly challenging at the moment,” said Isabelle Allen, global head of consumer, retail and leisure at KPMG, the event’s main sponsor. “In fact, a number of retail veterans in the region are saying that this is the toughest trading environment that they’ve experienced and operated in.
“Look at what’s happened in the last 12 months since we were here this time last year, the number of new conflicts, the resulting supply chain stresses, the increased prices of electricity and food, the sheer number of climate events,” she added.
Against this backdrop, retailers are not only being tested for their ability to remain resilient, but also for how they seize the opportunities and the new frontiers that have emerged.
According to Allen, the key trends include the rise of weight loss drugs, autonomous purchasing, and the economic value of trust. She also stressed the importance of data foundations, tech capabilities, and consumer connections for future-proofing retail.
“The retailers who will win here are not the ones waiting for perfect conditions, they are the one making clear choices on who they are, where they want to play, how they want to win, moving with intent, executing with discipline, owning the unknowns.
“The next few years will be testing, it will be bumpy, there will be pressure, there will be hard trade-offs, but there is also an enormous opportunity… Tomorrow is happening very fast, the future of retail is being built here in Asia Pacific, and the whole world is watching,” she said.
Lessons from the giants
In a session on the future of luxury retail, Anish Melwani, former chairman and CEO of LVMH North America, noted that Asian customers have been much more aware of luxury brands compared to the US, and the customer and in-store experience have played an important role in this.
According to Melwani, the luxury giant and its maisons have gone through multiple cycles of retail technology over the past decade. But as technology, particularly AI, evolved rapidly, Melwani said that the human element has to remain central.
“If all customer service agents eventually become virtual and AI-driven, then the last customer service agent will probably work for LVMH. In luxury, the customer interaction remains fundamentally human. We’re likely to see much more invisible technology that empowers people, rather than visible retail technology that’s front and centre.”
Melwani stressed that, from a luxury retail perspective, Asia is leading the world in both digital innovation and physical retail innovation. Aside from pioneering livestream shopping and social commerce, luxury stores in the region have also evolved rapidly, particularly in terms of innovation.
“Asian retailers have continued innovating the physical retail model, even in markets where digital commerce is already highly advanced. Despite being some of the most digitally connected markets in the world, they continue investing in ways to make the luxury physical retail experience better.”
Cultural relevance is also another important factor for luxury brands to win in the region, Melwani continued. While heritage is a competitive advantage of global maisons, it will become old, dusty, and boring without cultural relevance.
For DFI Retail Group, a conglomerate with 20 million weekly customers across 7500 stores in 12 countries, customer trust has become increasingly critical in a digital world. The pan-Asian retail giant manages a diverse portfolio of owned and franchised networks, including 7-Eleven, Mannings, Guardian and Ikea.
“The trust now is around how well you are maintaining control and the ability to protect the data that they choose to share with you, so we are leveraging the best practices of information security to ensure that that aspect of trust does not get broken,” said Scott Price, DFI Group CEO.
When it comes to technology and AI adoption, Price said the term FOMO (fear of missing out) has been replaced by FOBO (fear of better options).
There will always be a newer and better technology, so waiting for the “perfect” solution in fast-moving markets like Asia means falling behind, he added.
The art of connecting with consumers
Over the past 150 years, Shisheido has been leading the Japanese beauty playground with innovations that have bolstered its growth. Among them, the unique ‘beauty consultant’ system has stood out as a top initiative to connect with consumers.
First introduced in 1934 as ‘Miss Shiseido’, the beauty consultants are highly trained skin and makeup experts who provide personalised skin analysis, product recommendations, and tailored beauty regimens.
Starting with only nine members, the number of consultants has surpassed 13,000 worldwide.
According to Koji Nakata, representative director, president and CEO at Shiseido Japan, the consultants’ main mission is to maintain a continuous, trusted connection with consumers, providing personalised care, reliable information, and a seamless experience across touchpoints.
“Most importantly, they are not just selling products; they are delivering our DNA and unique value as brand ambassadors,” Nakata said.
The system itself has transformed over the years. In response to the rise of digital commerce after the pandemic, Shisheido launched the ‘omni beauty consultants’, whose services are not limited to retail counters but expand across e‑commerce, social, and livestream platforms.
The company now has more than 40 omni beauty consultants, who together have reached over 2.3 million followers on digital platforms.
“They are purely focusing on delivering brand value and benefit, and not just function or price. This is super important for our philosophy,” Nakata said.
The NRF Apac continues until Thursday.
