The bigger, the better when it comes to malls in Asia. The continent is home to all 10 of the world’s largest shopping centers and the allure doesn’t seem to be abating.
Meanwhile, here in the U.S., reports that mall culture is on the decline may be exaggerated in some places. While analysts predict the hardest hits will be leveled against lower-end malls, this simply isn’t the case concerning their higher-end cousins. Business is improving at centers catering to upper-income shoppers, according to numerous media sources including Business Insider and The New York Times.
America once held the mega-malls building title. But that crown now goes to Asia, where surveys say consumers there overwhelmingly prefer large centers with more than 50 shops, cites a report in Bloomberg View.
And the boom continues. Among the reasons—Southeast Asia and China are rapidly urbanizing, driving low-income rural residents into middle-class lifestyles. An example is Indonesia, where the urbanization rate stood at 38% in 2000 and is expected to rise to 60% by 2020, creating new city dwellers with cash to spend.
Furthermore, middle-class and affluent Indonesians are expected to double their numbers by 2020, to 141 million, from 74 million in 2012, creating a pool of potential consumers attractive to retailers. Consequently, in June, South Korea’s largest mall operator, Lotte, announced that it would open four Indonesian malls by 2018, according to Bloomberg News.
For a quickie look at 10 of the world’s largest malls, check out this video: