Chanel: Rent Is Nearly 3 Times The Core Area Of Paris.

In the past month, Hongkong's fashion luxury market can be described as black August.

Following the French luxury group LV M H's watch brand tiego Hoya closed shop in Tongluowan, and toppled Hongkong as the Asian luxury center's first Domino, in August 31st, Coach central flagship store two years ahead of the two years to quit the formal completion of the lease.

On the same day, BELLE international flagship brand Belle came to the last business day in Tseung Kwan O's last store.

At this point, the brand completely withdraw from the Hongkong market.

On the same day, the Royal watch and jewellery group of Hongkong signed an early lease agreement with Yu Rong.

The 2014 China luxury market report released by Bain earlier this year showed that the mainland China's luxury market for the first time showed negative growth in 2014, down 1% from 2013.

In 2014, luxury stores also closed the most stores. H ugoBoss closed 7 stores, Ferragamo and Zegna closed 6, and Burberry closed 4.

Slower growth in Greater China has led some luxury brands to continue to reduce or slow down their stores in 2015.

Data show that the number of Prada stores in the first quarter of this year was 33, compared with 49 in 2014, while the number of Amarni stores decreased by 5, while the number of Chanel micro-blog stores was 11, which was half of the largest store period.

Bruno LAN, Bain's global partner, has predicted that luxury brands will continue to adjust their distribution in 2015, including closing discount stores and authorized stores.

In 2015, the luxury brands in the Greater China region were not very good. It is not hard to speculate that the tide of shop closing is likely to spread to the mainland.

2014 Hongkong

The total sales volume was HK $493 billion 300 million, which was 0 .2% lower than the previous year. For the first time in 11 years, the retail industry launched negative growth.

This decline did not improve in 2015. Retail sales in August 31st released by the census and Statistics Department of the Hongkong special administrative region showed that the total sales value of retail sales fell 2.8% in July 2015 compared with the same period last year, declining for 5 consecutive months, and significantly faster than the 0.4% year-on-year decline in June.

According to the sales value analysis of the main retailers, the sales value of jewellery, watches and clocks and precious gifts decreased by 5% compared with the same period last year.

As early as last year, HSBC analyst ErwanRam bourg predicted that in the minds of mainland consumers, Hongkong is losing its status as a luxury centre.

It will face a series of closures of luxury stores.

The latest quarterly earnings data of luxury brands show that this prediction is not necessarily alarmist.

Tigheuya, Coach, Belle have been closed, Zhou Dafu intends to close 4 stores this year, the Royal watches and jewellery signed a refund, rent reduction agreement, has opened the second half.

Retail outlet.

The continuous high rent or the direct cause of the closing of shops.

In the first quarter of 2014, the retail rent in Tongluowan was as high as HK $43310 / sq m in the first quarter of 2014, which was nearly 3 times the rent in Paris's core area, according to commercial real estate service data.

The high rent resulted in a failure to negotiate with the owners and eventually decided to close the store.

The central flagship store closed by Coach is HK $7 million 200 thousand per month, and the early withdrawal of the property has saved HK $180 million.

At present, many Hongkong owners have to face the pressure of reducing rent.

In addition, more mainland tourists empathize with shopping destinations such as Europe, America, Japan and Korea, which also make Hongkong lose its attractiveness to the mainland's high purchasing power.

Retail sales of Harbour City, the largest shopping centre in Hong Kong, had fallen by 7.1% to HK $15 billion 600 million as of the end of June this year. The consumption trend of Hongkong's overall retail market is not difficult to see.

Tariff adjustment and changes in consumption structure may be the last straw in the Hongkong market.

In June 1st this year, the mainland lowered the tariffs on some imports. According to the retail sales results released by the Hongkong statistical department, sales of luxury goods declined, but sales of low and medium priced goods increased instead. Sales of food, alcoholic drinks and tobacco increased by 7% in July compared with the same period last year, and goods in supermarkets increased by 0 .4%.

This shows that the consumption structure of tourists has changed. They mainly purchase daily necessities.

The impact of such a shift on Hongkong shops has already appeared, and the activity of rental activities in the core area has declined, and the rental of the shops has dropped.