Hongkong LV Global Fourth Brand Strategy Shine Brilliantly

The retail industry in Hongkong was hit by a blow again. CLSA CLSA released a report to sing Hongkong retail stocks, especially watch and jewelry luxury retailers.

The bank said that retail sales had not yet stabilized, while retail rent adjustment was lagging behind, and the Hongkong government did not seem to have any rescue measures, so Hongkong retail stocks still had room for downside.

As we all know, the retail market in Hongkong is extremely difficult at present. Although the owners have begun to reduce their rents, the rent is still high, which makes some retailers who have lost their sales and have no profits to withdraw from the stores or sublet the shops which are relatively cheap.

Although retailers have taken various measures to try to reduce the losses in the Hongkong market and resume sales through early discounts, Hongkong

Still weak.

The retail sales data released in July by the census and Statistics Department of Hongkong showed that the total retail sales in the market expanded to 2.8% in August 31st, compared with 0.4% in June, at HK $37 billion 600 million.

The total retail sales of Hongkong in the 1-7 months of this year dropped by 1.8% over the same period last year, an increase of 1.6% over the first half of the year.

Despite the double-digit decline in jewelry, clocks and gifts, the July decline this year narrowed to 5% of the figure for the first time this year, but clothing and other categories began to increase.

In July, clothing sales in the Hongkong market plunged 13% over the same period last year. In addition, the number of goods and footwear, related products and other clothing accessories in department stores decreased by 7.3% and 7.9% respectively, while the market for drugs and cosmetics had not improved. The decrease was 5.4%, a slight increase compared with June and a 5.9% decline in the external optical stores.

Because of the strong Hong Kong dollar, CLSA CLSA said that prices in Hongkong were no longer competitive. Before that, the Hongkong market as a free duty-free port attracted mainland consumers to flock, especially after free travel. It was crazy before 2012. It was placed in front of several of the most famous luxury stores in Guangdong, Harbour City, Guangdong Road, Tsim Sha Tsui. Before 2012, the queuing situation was basically extinct in the first half of eighteen. In April of this year, the Chanel brand Chanel implemented the "global coordinated pricing" strategy to reduce the market price of Hongkong and Mainland China, and the brand in April this year.

Flagship store is short and long queue shopping, but the Louis Vuttion Louis Weedon flagship store, which refused to adjust prices, is relatively deserted. Even tourists take the brand Harbour City flagship store as the background plate to play the self timer, only a few shoppers.

CLSA CLSA's weak view of Hongkong's retail market also includes the strong Hong Kong dollar caused by a strong dollar linked to the US dollar, which gives Hongkong a big advantage in the face of Southeast Asian competitors, Japan and South Korea.

To prove this weakness, CLSA CLSA has conducted an investigation into the price of Louis Vuttion, Louis Weedon's classic best seller handbag Louis Vuitton Speedy 30, in major market countries.

According to the survey, the price of the same Louis Vuitton Speedy 30 without shoulder strap handbags is fourth of the world's total price, which is 1.43 times the price of the French local market, far higher than that of the Japanese and Korean markets, 1.21 times and 1.24 times that of mainland China, Malaysia and Philippines respectively. The three mainland countries in China are 1.6 times the top of the three countries, and the most expensive countries are Louis Vuitton Speedy 30. The price of Malaysia and Philippines is 1.59 times and 1.44 times of that of France respectively, ranking second and expensive in Hongkong.

Weak

In addition, the Hongkong market retailers are more concerned about the continued appreciation of the RMB and the local "anti water passenger" demonstration in Hongkong. Last week, there were still citizens in Hongkong's water market.

Hongkong's chief executive, Mr Leung Chun Ying, this week also affirmed that the retail industry and members had called for the early elimination of measures such as "milk restriction" and other measures aimed at mainland tourists.

Last week, Fang Gang, a Hongkong congressman who belongs to the retail and wholesale industry, said that the downturn in retail industry was mainly due to the rise of complaints in China and Hong Kong. A series of acts such as the restriction of milk orders and the demonstration of "anti water customers" made Chinese tourists dissatisfied.

Fang Gang said that if the Hongkong chief executive Liang Zhenying can stand up early and clarify that the "anti water tourists" demonstrators are only a small part, not all of the Hongkong people, and apologize to mainland tourists, or to attract some popularity, but Liang did not do so.