GMG, told Inside Retail. “The country has a well-established retail ecosystem with high-traffic shopping malls, premium retail spaces and a digitally engaged consumer base.”  According to Baker, Singapore serves as a key regional hub, benefiting from strong consumer demand and tourist spending, while Indonesia, the largest consumer market in Southeast Asia, has a rapidly growing middle class and increasing interest in athleisure, making it a crucial expansion market.  Meanwhile, Hong Kong remains a strategic retail hub with a high-spending customer base and access to premium retail spaces. GMG’s growth has been fueled by strategic acquisitions and high-profile store openings. The acquisition of Royal Sporting House in 2020 provided a strong retail foundation across North Africa, Southeast Asia and Hong Kong. In 2022, GMG further strengthened its position by acquiring Nike-only stores from SUTL Corporation in Singapore and Malaysia. One of its most significant milestones was the opening of Nike Orchard Road last year, a three-level, 28,000sqft store, the largest Nike mono-brand store in Asia outside China. “This store offers exclusive digital and online-to-offline (O2O) services, setting a new benchmark for customer engagement,” Baker said.  Despite its rapid expansion, GMG remains focused on a localised approach, tailoring its retail strategies to consumer behaviours in Malaysia, Singapore and Indonesia. However, expanding in Southeast Asia is not without challenges. Regulatory challenges  “Each Southeast Asian country operates under distinct retail regulations, trade policies and business practices, which presents unique challenges for businesses looking to expand in the region,” Baker said. “From licensing and taxation frameworks to import regulations and labour laws, navigating this complex environment requires local expertise and strong government relations.” To manage regulatory hurdles, GMG has established a regional headquarters in Kuala Lumpur and an operational office in Singapore. Insights from its acquisition of Royal Sporting House have also helped the company understand local market dynamics. Talent acquisition is another challenge, as Southeast Asia’s workforce is diverse, and competition for skilled professionals is high. GMG has invested in leadership development and retail training programs to build a strong local talent pool. “Building a strong local workforce is key to our long-term success,” Baker said. “We emphasise leadership development and comprehensive training.” According to the CEO, supply chain disruptions and rising costs are additional concerns. GMG’s logistics arm, Trilogi, has played a crucial role in optimising supply chain operations by leveraging strategic warehousing and distribution hubs.  “Our partnerships with key logistics providers ensure efficiency across our retail network,” Baker added. Looking ahead  The company’s portfolio of brands includes Nike, Vans, Timberland, The North Face and Columbia. It also recently signed with Frasers Group to bring Sports Direct to the MENA region. Sun & Sand Sports remains a key part of its portfolio, championing an active lifestyle in Southeast Asia. “We distinguish ourselves by focusing on well-being. We position ourselves as a global well-being brand, covering the entire consumer journey – from active living and nutritious food to good health. This holistic approach sets us apart from competitors concentrating solely on sports retail, establishing us as a leader in promoting overall wellness,” Baker said.  According to the executive, several key trends are expected to shape the sports and lifestyle retail sector this year.  “We see that consumers are prioritising products and experiences that support their health, fitness and mental well-being. This growing focus on wellness drives substantial growth in lifestyle electronics, outdoor gear and sporting goods, reflecting a broad shift in what we value in our everyday lives,” he said, adding that casual sports like pickleball and paddle tennis are gaining traction, while technology integration, particularly in wearable devices, is influencing fitness trends. Sustainability is becoming a major focus, with brands investing in eco-friendly production methods. Meanwhile, omnichannel retailing and personalisation are increasingly important as consumers seek seamless shopping experiences and tailored recommendations. “However, we must also acknowledge the economic challenges that persist in the industry,” he added. “The increasing economic shifts, such as inflation, recession risks, and changing consumer spending habits, in addition to supply chain disruptions are factors that impact the retail industry.” “Adapting to changing consumer preferences, embracing technology and prioritising sustainability will be crucial for long-term success,” Baker concluded.  Further reading: How Dubai sportswear giant GMG aims to crack the Southeast Asia market.