Luxury Positions Shifted To Macao Tycoon?

Audemars Pigeut's IWC watch and OMEGA's luxury watch will double the number of shops in Macao, while closing two stores in Hongkong. This decision means

At least 9 new stores will be opened in Macao, which will make Hongkong's retail industry more difficult.

Hongkong's retail sector is in a slump.

This is not a new topic in Hongkong.

The number of tourists who fell for 9 consecutive months fell to the lowest retail sales in 17 years in February, and the number of group trips that fell by more than half during the May 1 period.

Once the shopping paradise is now even iPhone can not sell, according to Apple Corp's first quarter earnings in March 30th, China's sales fell 26%, and most of the decline is reflected in Hongkong.

Burberry Group sales in Hongkong also fell 20% in the three quarter of the year. Sales of Zhou Dafu Jewelry Group and Sasa cosmetics company declined.

The "mainland free travel" opened in 2003 brought a lot of mainland tourists to Hongkong, and also brought vigorous consumption.

Because luxury goods sold in Hongkong are about 40% less expensive than the mainland, the Louis Vuitton and Chanel front yards in busy street have a long queue.

This scene has not been common since last year.

In August 2015, TAG Heuer of LVMH, a luxury luxury group in France, announced the closure of its shop in Russell street, Tongluowan, Hongkong.

After the fall of the Domino, the US luxury brand Coach closed its flagship store. Burberry reduced the area of flagship store at Tai Koo square, and Prada, Gucci, Chanel and other branded goods were close to Christmas half off, or even indefinite sales promotion, which failed to restore retail fatigue and gradually thinner people.

According to Hong Kong media, during the Christmas holidays in 2015, the number of tours in the mainland decreased by 25% from 400 to 200-300 in previous years.

Relaxation of visa policy makes it easier to go abroad.

In fact, Japan and South Korea have become the new favorite of mainland tourists. Hongkong is no longer attractive compared with luxury prices in Japan and South Korea.

At the same time, the global tourist cities have relaxed visa system to attract Chinese tourists. Only the residents with a Shenzhen account can enter the port many times in a week.

Hongkong Gucci store

The government of Hongkong is saving, but on the island

And the plight of the service industry has been peeling off.

For the mainland middle class with a higher demand for environment, it is still a long time for Hongkong to get back to its freshness.

"Hongkong has always relied on Chinese tourists to shop, and investment and experience in building new destinations are inadequate."

CLSA securities analyst Mariana Kou said: "Hongkong needs to be pformed into a more diversified tourist destination."

In Macao, "when men lose a lot, they buy their wives a handbag under guilt."

In 2015, luxury stores opened in Macao, and they were not small.

Tom Ford's largest boutique in Asia is in the New World Expo, and Burberry's new store is also open in New River fashion.

In such a situation, it still attracts luxury brands to open stores, perhaps because the situation of a strip of water in Macao is not as limited as Hongkong.

The bustling luxury consumption areas of Macao one Plaza, Venice people the Grande Canale shopping center and Wynn Street are still keeping pace with the market rules.

According to the data released by the Macao gaming supervision and Coordination Bureau in May 1st, the gross revenue of Macao gambling in April was 17 billion 340 million yuan in Macao, with a drop of 3.5%, which is much more optimistic than the two figure expected in the market. It is also narrower than the 16.3% decline in March.

The stability of the luxury market is inseparable from the casino business in Macao.

Visitors to Macao are different from Hongkong. Most of them are male traders from Guangdong and Zhejiang. They are not regular customers of handbags, but the additional consumption caused by gambling behavior is not to be underestimated.

Macao's shopping centers, like Venice people, have more than 330 international stores.

Aaron Fischer, a luxury goods analyst at CLSA, once said that after losing a lot of money, men would buy a handbag balance for their wives under guilt, while others would buy it.

The jewellery is phipment.

Just like when Las Vegas was gambling and slipping, shopping became the main source of income. Huang Shaoji, general manager of Zhou Dafu, once said that when the Hongkong stock market plummeted, "business tends to be good", perhaps because people who would lose would be willing to buy what they always wanted.

In fact, since 2010, Zhou Dafu's sales growth in Macao has been higher than that in Hongkong.