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    Why Are Fewer And Fewer People Buying Luxury Goods In Hongkong?

    2015/2/28 18:21:00 34

    PradaHongkongLuxury Goods

    Prada was not very good in the first year.

    The latest earnings report shows that Prada has suffered its first decline since listing, down 1%.

    In the Asia Pacific region, the performance of Hong Kong and Macao markets dropped by 5% due to political factors.

    Compared with previous years of growth momentum, this index can be called a sharp fall.


    The reason sounds more like sophistry, after all.

    Prada

    The aging of its brand image is an indisputable fact.

    But there are no doubt that the recent turmoil in the Hongkong market has caused a great impact on the entire luxury industry, far more than Prada.

    With natural geographical advantages and attractive tariff free prices,

    Hong Kong

    Once became the favorite luxury goods of the rich in the mainland to buy the market.

    In the past few years, Hongkong's luxury sales accounted for 10% of the global market.

    Sales of all LVMH Group brands including LV and Celine in Hongkong also exceeded 8%.

    But over the past year, things have changed.

    On the one hand, when San Francisco's luxury stores in the streets are flooded with billboards of "sheep year Daji", Hongkong, the closest port city to mainland consumers, shows the opposite attitude.

    A series of political events led to a sharp decline in the number of mainland tourists to Hong Kong, while the anti mainland tourists' behavior in many business circles also intensified the contradictions.

    Some figures illustrate the problem.

    During the Spring Festival, the number of mainland tourists to Hong Kong exceeded 670 thousand, down 0.16% from the same period last year.

    This is the first time that the number of mainland tourists to Hong Kong has declined in the past twenty years, compared with an increase of 13.7% in the same period last year.

    The group of wealthy people in Hongkong called locusts chose to pfer to Japan, Korea or Taiwan. After all, they had the same low price but more friendly consumption environment.

    The number of visitors to Hongkong has also decreased.

    In 2014, the number of tourists to Hong Kong exceeded 47 million, of which 60% were one-day tours.

    In 2006, the figure was only 38%.

    This means that more than half of the tourists stay in Hongkong for a very short time, which is short enough for mass consumption.

    On the other hand, the punishment of "three consumption" and corruption behavior has also hit the mainland luxury market.

    Sending Gucci bags to officials seems to be natural in the past (see AVON's "bribery door"), but now it becomes a dangerous thing.

    On the charts given by Bloomburg, we can see that sales of clocks and jewellery in Hongkong have dropped dramatically since the second half of 2013.

    To add insult to injury, a strong Hong Kong dollar to Hongkong.

    Luxury goods

    Sales are also a disadvantage.

    The decline of the euro has made Europe a luxury paradise for luxury goods. After all, ticket prices are falling, and buying a Chanel in Champs Elysees rather than in central is more powerful.

    In addition, Japan and Russia are more unexpected.

    At the end of 2014, the Japanese yen and ruble fell sharply, and the rise of Taobao and Japan's Russian buyers witnessed the short carnival.

    Hongkong is less attractive than the mainland.

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