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    Sale Of Luxury Goods In Hongkong Is Cold, Prada Starts Selling Price

    2015/12/4 22:12:00 71

    PradaHongkongPrice Promotions

    Recently, a long queue was formed at the gate of Prada luxury flagship store in Times Square, Tongluowan, Hongkong. This contrasts sharply with the phenomenon that the shop has been left behind in the past few months.

    Miss Chen, who made a special trip from Shenzhen to Hongkong to buy the brand handbag, told reporters that she received the price information from WeChat last week.

    In the past 12 months, Christmas promotions in the past were nearly a month earlier, and the discount rate was bigger than before. Many classic styles also joined in the discount.

    For example, she looked at a direct half price promotion, from 20 thousand yuan to 10 thousand.

    Based on the strong US dollar, the decline of mainland tourists and the change of consumers' shopping mode, the prospect of Hongkong's retail industry is still not optimistic.

    But at the same time, there is also a view that luxury brands will readjust their sales strategy, and the middle end retailers will also rise to fill market vacancies.

    This is a good opportunity to adjust the structure of Hongkong's retail industry and promote the diversification of market products.

    It is understood that the price promotions do not have a deadline until all the goods are cleared.

    It is understood that at that time, Prada did not choose a large-scale price reduction promotion, but chose to expand commodity category, increase high-end goods and light luxury goods, but the brand's first quarter net income and profits have not changed.

    In July of this year, Prada began to join the price adjustment, announced the price adjustment to many regions including China, and the price adjustment was about 10%.

    The discount rate of "low to half off" and the large number of merchandise categories indicate that the current sales promotion is much larger than before.

    This is the last move, which shows that the brand is facing enormous sales pressure in the Hongkong market.

    Ma Yingzhao, general manager of Yao Yang international investment, who has more than 20 years of enterprise strategy and sales and marketing experience, said.

    Watches, jewellery and luxury goods have been a big share of the retail market in Hongkong.

    Carol Felwether, chief financial officer of luxury brand Burberry, pointed out earlier this year that Hongkong and Macao accounted for 10% of the total sales of the brand, while tourists from the mainland of China contributed.

    Hong Kong

    80% of market sales.

    She also stressed that the situation has changed since last year, and that changes in shopping environment and exchange rate movements in Hongkong have led Chinese tourists to travel to Europe or other parts of Asia.

    "Mainland visitors are the main force in the luxury goods sales market in Hongkong. The most direct reason for the luxury goods being cold in Hong Kong is the continuous decline in the number of mainland visitors to Hong Kong."

    Dong Yaozhong, director general of the Hongkong Tourism Industry Council, said.

    According to the latest data released by the SAR government, the total number of mainland visitors in October was about 5 million 70 thousand, a decrease of 2.7% compared with the same period last year, of which mainland passengers fell by 4.2% over the same period last year.

    This is the fifth consecutive month of decline in the number of visitors to Hong Kong since June of this year.

    Facts show that many businessmen and brands located in mainland tourists have been actively implementing the pformation of marketing strategy.

    Take the jewelry industry as an example, many local jewellers began to attack local customers, and take a series of measures, such as moving from tourist areas to residential areas, developing low-priced jewelry and other measures to cope with the "cold winter".

    In October of this year,

    Chow Tai Fook

    Xie Ruilin opened a special store in Hong Kong for the first time in Hong Kong. He also began to shop in the mall, attracting customers with "low to sixty percent off" concession. The phenomenon of "familiar with people" in this special store was not common before.

    Wu Qiqin, chief strategist and financial officer of Xie Ruilin, said Hongkong's retail industry is still challenging in the next 12 months.

    The future group will continue to expand the local market and design more products that are suitable for young customers, so that customers can be "frugal" and have more choices.

    At the end of August this year, the flagship store of Coach, a luxury brand in central, was declared closed due to declining sales.

    The new tenant of the golden section is Adidas, the fashion sports brand. The brand will set up flagship store in Hongkong.

    According to the analysis of the industry, luxury stores are replaced by the more popular mid end brands, or will become the development trend of Hongkong's retail market in the future.

    Ma Yingzhao said, along with

    Cross border shopping

    With the rise of the mainland and the decline of mainland tourists, many luxury brands in Hongkong will face the crisis of closing or integrating branches.

    But at the same time, the middle and low end brands and local creative industries will have the opportunity to develop in the process of pformation, which is a good opportunity for readjusting the layout of retail industry and promoting the diversification of market products.

    "With the development of the mainland economy and the recognition of Chinese designer brands in the world, some high-end brands in the mainland can also take advantage of the adjustment opportunities of Hongkong's retail market to enter Hongkong to expand business opportunities as platforms."

    Ma Yingzhao said.


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