The Price Is Not Improving. Luxury Goods Are Being Evacuated From Hongkong.

As the luxury brand strategy contracted to cope with sharp sales, Boboli group, Kai Yun group and jewellery retailer Zhou Dafu group are urging owners to rent less on their existing properties.

In fact, in the second quarter and half year earnings reports of all the luxury brands, almost all luxury brands have fallen into the Hongkong market, and Hermes also said Hongkong is still in a "difficult environment".

How to evacuate Hongkong step by step.

Price cuts haven't started yet.

Facing the market environment where luxury consumption growth continues to slow down, all luxury brands are trying to adjust their pace.

In April this year, Chanel (Chanel), Prada (Prada), Dior (Dior), Cartire (Cartier) and Patek Philippe (Patek Philippe) all adjusted their prices to save the dilemma. Gucci (Gucci) chose to discount the goods.

But the short boom of price cuts and promotions can not hide the performance crisis of luxury brands in the Asia Pacific market (especially in Hongkong).

In the first half of the major luxury brands' earnings reports, the Hongkong market and the Asia Pacific market, which were so dense, led to a sharp decline in brand profits.

Please the biggest gold master.

CEO of many luxury goods groups reaffirmed their confidence in the earnings report, but in fact, in the past two years, the Chinese market has become a "tumor" in the luxury market.

The luxury group is still making efforts to please the biggest gold users, holding various art activities in the Chinese market to maintain its quality.

In terms of value and even in stores, traditional luxury brands are relatively conservative in the expansion of new stores. Brands adopt stricter store selection criteria and shift their focus from the three line market to the second tier market, while closing down smaller stores in the lower tier cities.

Jointly issued the slogan of "forced rent"

While Hongkong's retail formats are not improving, Hongkong's high rent has become a huge burden on luxury brands. Luxury groups have to renegotiate with owners on rent issues.

Russell street is an important retail hub in the Tongluowan area. They could have the highest retail rent in the world a year ago, but now we need to see the reality.

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Writing pen manufacturer MontBlanc (Montblanc), tabulating omega (Omega) and

Chaschwarloschi (Swarovski) is next to each other.

The average rent in the lot has dropped by 10.4% in the first half of this year, Gao Li International said.

TAG Heuer closed its store on Russell street last week due to high rent and falling traffic.

The French Open Cloud group, such as Gucci, Gucci, SaintLaurent and Bottega Veneta, has warned that if the rental cost does not come down, several shops in Hongkong will be closed.

"Many owners do not necessarily understand that the market has changed," said Jean-Marc Duplaix, chief financial officer of Kai Yun group, in a telephone conference with analysts in July.

Another French luxury giant, including its Louis Vuitton, Dior (Dior), Fendi (Fendi) and other brands LVMH group also feel uneasy about Hongkong rent, LVMH chief financial officer revealed that there have been several rounds of negotiations with the owners, at this stage, it is hard to say that Louis Weedon can get a rent reduction.