Digital鈥檚 rapid adoption in recent years has made it the dominant medium with which people spend time in China, Japan, and South Korea, with consumption booming in India.
The situation: A cloud of uncertainty has hung over the US economy since the Trump administration鈥檚 April 9 pause of so-called reciprocal tariffs. That鈥檚 made it difficult for retailers and brands to plan for the short and medium term.
The outlook is now poised to grow even murkier. President Donald Trump extended the pause period鈥攐riginally set to expire on Wednesday鈥攗ntil August 1. At the same time, he announced new 25% tariffs on imports from South Korea and Japan, also taking effect August 1, along with steep additional levies on other countries.
Our take: With companies planning to pass on about 70% of the cost of levies to consumers via higher prices, it鈥檚 no surprise that we expect tariffs to take a meaningful bite out of retail sales this year鈥攚hether we remain in the moderate scenario or shift into a heavier one.
In such a dynamic environment, retailers and brands should rely on scenario modeling that accounts for a range of possible futures. They can hope for the best but plan for the worst to ensure they鈥檙e ready to adapt to whatever twists lie ahead.
The Asia-Pacific retail ecommerce sector is both dynamic and volatile. While China and Japan are slowing, South Korea is growing rapidly, and emerging markets like Southeast Asia and India are showing robust growth and untapped potential.