How Is Hongkong'S Luxury Market Plummeting?

During the Spring Festival holiday, the tourist peak is coming. According to the relevant network survey, since the opening of mainland tourists to Hong Kong and Macau for free travel, Hongkong has been the preferred destination for mainland tourists to outbound travel for many years. Hong Kong It is a free port, plus the exchange rate of RMB against Hong Kong dollar. In the eyes of mainland tourists, Hongkong is known as "shopping paradise" and "blood shopping Holy Land". Obviously, tourism brings Hongkong not only popularity but also wealth, and the first thing that leads to the retail industry is the retail industry.

However, according to the data released by the Hongkong SAR Government in February, Hongkong's total retail sales in 2014 amounted to HK $493 billion 300 million, down 0.2% from the previous year. This is the first negative growth in retail trade in Hongkong in the past 11 years since the introduction of free trade. Jewelry Sales of watches and clocks and precious gifts fell significantly, down nearly 14% from a year ago, which is considered to be the main reason for total retail sales.

Luxury sales are cold

Hongkong's "shopping paradise" is not so bright.

For the change of data, the chairman of Hongkong Retail Management Association, MAE Lai hung, believes that the anti-corruption efforts in the mainland have intensified, which has an impact on the sale of some high-end goods in Hongkong. Some analysts believe that more mainland tourists are empathetic to Europe and the United States. On the one hand, the number of mainland tourists traveling to Europe and the United States increased, and the euro depreciated. However, because of the high rental of the shops in Hongkong, some of the goods sold had no price advantage relative to Europe and the United States, and gradually lost their attractiveness to the mainland's high purchasing power. On the other hand, online shopping has grown rapidly in recent years, and overseas purchasing business has also diverted some mainland tourists' purchasing power.

Although Hongkong Luxury goods Sales declined, but sales of low and medium priced goods increased. In this regard, Hongkong media analysis pointed out that this shows that the consumption structure of tourists has changed, and the number of passengers staying overnight in Hong Kong has increased. The emergence of this situation is related to the continuous integration of the mainland and Hongkong. With Hongkong becoming more and more involved in the Pearl River Delta living area, many PRD residents go to Hong Kong to purchase daily necessities, and the new life circle builds a new form of retail industry.

The consumption structure has shifted from luxury goods to medium and low priced goods, and the impact on Hongkong shops has emerged. The analysis of the commercial real estate research institute Dai tie Liang believes that in 2014 jewelry and watch retailer expansion momentum slowed down significantly, the core area of the shops rentals activity decreased, the bunk rent has dropped.

"Occupy the middle" and drag the economy

During the whole year of 2014, tourism and retail industry in Hongkong were all entangled. Especially in the second half of the year, the biggest uncertainty came from "occupy the middle".

At the end of September last year, the illegal occupation of some Hong Kong people blocked the main shopping districts in Hongkong, and many shops were forced to shut down. "Occupy China" made it difficult for the business community to dig gold in the golden week of October. Merrill Lynch estimated that Hongkong's retail industry lost HK $100 million a day and accounted for the negative retail sales growth throughout the year.

The annual discount season from Christmas to the Spring Festival in Hongkong usually attracts a large number of tourists. However, statistics show that sales figures for retail sales in December last year did not rise or fall, down 3.9% from the same period, which is the worst Christmas holiday since 2003.

Retail industry is one of the four pillar industries of Hongkong's economy. "Mainland buyers" has become a decisive force in supporting Hongkong's retail industry in the past ten years. In 2013, 1/3 of Hongkong's total retail sales was the contribution of mainland tourists. Mai said that the impact of "Zhong Zhong" is not only 79 days, but also affects the consumption desire of Hong Kong people and tourists, which brings challenges to the retail industry. Liang Yaolin, the chairman of Hongkong inbound tourism reception Association, said that "Zhong Zhong" also scared away foreign tourists. Hongkong's retail industry has left gold for ten years.

Businessmen take the initiative to attack.

How does Hongkong's "shopping paradise" flourish? Mae Lai hung believes that the high-end consumption of "free travel" is not the main reason for the decline in the past. Therefore, it is recommended that Hongkong improve its receptionist capacity and open more free cities with high consumption power, perhaps promoting Hongkong's retail market.

The idea of increasing the freedom to run the city has just been put forward, and was immediately confronted with loud opposition in Hongkong, and was accused of "mercenary". In recent years, the topic of mainland tourists' free travel has been controversial. The conflict between tourists from Hongkong and the mainland seems to be neither pure tourist carrying capacity. Of course, the sudden increase of tourist volume did not keep pace with the matching measures, and indeed affected the life order of the people of Hong Kong. However, in 2014, a series of discrimination against mainland tourists in the streets of Hongkong, such as "drive away locust" and children's urine, were also the reasons for the decline of Hongkong's retail industry.

More businessmen return to the rational level, and actively explore new sales normal under the trend of parity. Ocean Park, Disney and other famous scenic spots in Hongkong began to pay attention to tap the potential of local consumption, and from the end of last year to the beginning of this year, launched a series of preferential measures including free birthday, discount and so on.

In addition to attracting the "passive mode" of mainland customers to Hong Kong, the Hong Kong government has also launched a total of HK $1 billion "development brand, livelihood transformation and expansion of domestic market oriented Fund" to help Hong Kong enterprises "take the initiative to attack" and enter the mainland market.

Huang Jincheng, managing director of the Kowloon table, said that the consumption pattern of mainland tourists has changed. Hongkong's tourism and retailing industry must also face the transformation of the mode, and actively create Hongkong's local brands and expand sales channels. Six months ago, the Hongkong Kowloon watch industry, which has been in 40FMAG for many years, began to build its own brand goods, priced at 1000 to HK $20000, and launched online shopping.