Hongkong'S Panic In The Retail Market Is Aggravating.

In the past year, the core retail blocks in Hongkong have already experienced luxury goods, especially those with weak watches and jewellery.

The quarterly results of last week and last week, such as Li Feng, Bai Bo Li and Hugo Bos group, show that there is no sign of warming in the Hongkong market. This is not surprising for the Hongkong market, which has been languish for two years in the luxury market. However, local media in Hongkong say that the drugstore is also suffering from the slowdown of tourists' consumption and has begun to withdraw from the main retail blocks.

By the end of the lunar calendar, the drug store also began to evacuate extensively due to the reduction of the lease period.

In the past 5 months, at least 14 pharmacy dispensing cases occurred in Tongluowan, Tsim Sha Tsui and Mong Kok in the retail core area of Hongkong. Of these, 8 were early departure cases and 5 were still vacant after the expiry of the lease.

Among them, the Mong Kok district is the hardest hit area, with a total number of 7 shops, but there are 4 and 3 cases in Tongluowan and Tsim Sha Tsui respectively.

In this regard, Huang Weiji, director of the Central Plains real estate department, commented that the number of mainland tourists has declined in recent months, but mainland Chinese who have come to Hong Kong have rarely bought expensive products, such as bird's nest and ginseng and pilose antler. This has led to a sharp fall in the pharmacy business. It is estimated that after the end of the new year's day, the 4 core vacancy rates will rise from the current 7 to 8% to 10%.

In the first 11 months of 2015, the total retail sales of pharmaceuticals and cosmetics in Hongkong recorded a decline of 1.3% to HK $37 billion 589 million. Although the decline was smaller than the overall retail sales of 3.1%, it was also excellent in terms of luxury, clothing, department stores, footwear, spectacles and so on. However, drugs and cosmetics were the fifth largest categories of Hongkong retail market, second only to the first category of jewellery, watches and clocks and precious gifts categories, second categories of supermarkets, third categories of clothing and fourth categories of general merchandise, so Hongkong retail and retail rental market had a great impact.

Because of the lower unit price and the lower department stores, Hongkong drugstore stores all over the core and occupy all the core retail areas. In addition to a small number of top core areas such as Russell street, which are occupied by jewellery, timepieces and gold companies for a long time, there are many drugstore stores such as Guangdong road and other main streets. Among them, Sasa, Zhuo Yue, Wanning, Longcheng, Jin Ying and Watsons are the representatives.

According to comprehensive market information, the Dragon Town duty-free pharmacy in Mong Kok Street, Mong Kok, has made a "clearance of goods" to clean up the stock. It is said that the cosmetics store is leased until March, and this is obviously not going to renew the contract. The underground shop of the 700 meter square floor of the Cheong Kee Building, which was also rented by the drugstore, had been moved out last month. The lease still has a year to expire and the rent is HK $600 thousand.

In addition, Tongluowan's Lockhart road has a monthly rental of HK $510 thousand, which has been leased to HK in September 2018. The drugstore renter went out of the building in November 2015 as early as November 2015, and left for rent 34 months earlier. Besides, Nathan's Road shop in Tsim Sha Tsui has a rentals of 1 million 50 thousand yuan to November 2017, but in August 2015 the drugstore left the field 27 months earlier. It is still vacant and rented at HK $900 thousand.

After the free trip, due to the influx of mainland tourists into Hongkong, there are at least 20% discount beauty products, more reliable edible bird's nest and other products.

In Hongkong and other places, the local cosmetology shops in Hongkong are flourishing. Among them, Sasa, the chain store brand, has become the largest beauty chain retailer in Southeast Asia.

However, since 2012, the retail market in Hongkong has turned cold. Over the past two years, the contradiction between Hong Kong and mainland has intensified and the strong Hong Kong dollar has fallen sharply. Sasa and other drugstores have become the most serious loss category except jewelry and gold companies.

Same store sales, customer unit price fell.

Since the two quarter of 2015, the number of mainland visitors to Hong Kong has dropped sharply, and the number of pactions has begun to decline.

Although Sasa was not involved in the store, the company also said that the mainland tourist business was hard to do and switched to the local consumer market in Hongkong. Many new stores were located in residential areas such as Huang Daxian, Yuen Long and Tuen Mun. The company said that 95% of the median income decline came from the shops in the main districts, such as Tsim Sha Tsui, Mong Kok and Tongluowan.

The drop in sales also brought Sasa's front-line sales staff down by 15%-20%.

And Sasa's main competitor, co founder, chairman and CEO of Zhuo Yue Holdings Limited.

Even in the middle of 12 months of 2015, Ye Junheng and Zhong Peiyun sold 550 million copies to third party buyers, including 16.12% Zhuo Yue shares, and 305 million HK $through indirect holding company Promised Return Ltd.

At present, none of Hongkong's government, tourism and retail businesses and many investment banks are optimistic about Hongkong's retail market. With the Chinese economic slowdown and stock market loot, China's middle class dominated retail investors, Hongkong's retail market is becoming more and more cold, while retail outlets in the crowded retail core area are expected to continue to welcome retailers' rent out.