The Decline Of Hongkong'S Retail Industry Is Becoming A Reality.

Hongkong's prices continue to climb, leaving Tokyo behind, sequelae continue to emerge.

In recent years, the retail industry in Hongkong is in a rather bad position, and the concept of luxury goods is the first to bear the brunt.

However, last week, a strange thing happened in the Hongkong market. A luxury brand shop was full of traffic. There were local customers, mainland customers and foreign tourists. They had to queue for hours to enter. Many commodities were swept away. Hongkong's luxury market seemed to be coming back to spring.

Unfortunately, such cases are rare, and the downward trend of Hongkong's retail industry is becoming a reality.

In the past year, the US dollar rose slowly as the US entered the countdown to raising interest rates, while Eurasian economies remained depressed.

The devaluation of the Hong Kong dollar, which is only linked to the US dollar, is driven by a simultaneous appreciation and is totally counter to the Asian competitors. This undoubtedly laid a bomb on the retail market in Hongkong.

Hongkong's local market is small. In the past, a large number of mainland tourists came to Hong Kong to consume. As a single city, they occupied about 10% of the international luxury brands.

The appreciation of the Hong Kong dollar, the high rent and the rising cost, together with a series of social anomalies, have led to foreign tourists.

Severe contraction.

Some luxury brands in Hong Kong were forced to declare "permanent price reductions" for the sake of saving the country. They hoped to adjust prices to a more close to European price. Actions were carried out simultaneously in the Asia Pacific region.

But in the long run, price cuts may not save the retail industry.

Earlier, international research institutions announced the latest ten most expensive cities in the world.

Ranking the top of the list.

This ranking has become the fate of Hongkong's retail industry. Just like a sharp knife inserted into the head of tourists, visitors can't help worrying: will shopping in Hongkong be destroyed?

According to the latest monthly survey of retail sales released by the census and Statistics Department of Hongkong, the estimated value of total retail sales in Hongkong in January 2015 was 46 billion 600 million yuan, while that in the same month in 2014 fell by 14.6%. In December 2014, the revised value of total retail sales in Hongkong was 4% lower than that in the same month last year.

Hongkong's prices continue to rise, leaving Tokyo behind and sequelae constantly emerging. Hongkong is no longer a shopping paradise.

Global tourists flocked to Tokyo to go shopping crazily, while Hongkong appeared to be in a cold air.

In fact, manufacturing industry in mainland China is also suffering from high cost. Many Japanese manufacturers are slowly leaving the mainland. The mainland is facing the pain of the Japanese manufacturing industry's withdrawal. At the same time, Japan feels strongly that "Chinese consumers are going to live in the East."

Japanese businessmen are also quite realistic. After the Meiji Restoration, Japan is no longer a Chinese holiday. In recent years, every big city's shopping area is full of Chinese festival slogans. People who don't know the truth also think that the Japanese will celebrate Chinese festivals with Chinese.

Even in Japan, South Korea is much less important.

Visitors from mainland China come to Korea and feel like they are in the mainland. At the same time, the cost of Chinese tourists shopping in Korea is getting lower and lower.

All this is in sharp contrast to Hongkong.

Hongkong is no longer a shopping paradise. It seems that retail concept is not far from the "death". If investors hold stocks of Hongkong retail listed companies, they should also be prepared to sell.