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    The Retail Industry In Hongkong, Which Has Entered The Cold Winter, Will Be Hit Again.

    2016/10/29 12:12:00 16

    RetailMarketLuxury

    The census and Statistics Department of the Hongkong Special Administrative Region recently released its retail sales in August 2016, August 2016. Retail The value of total sales is estimated at 34 billion 600 million Hong Kong dollars, down 7.7% compared with the same month in 2015. This is the 18 consecutive month of decline in retail sales in Hongkong.

    For a long time, tourism retailing has been one of the main economic pillar industries in Hongkong. However, at present, the spanformation of Hongkong's internal and external environment and conditions has greatly affected the competitive advantages of Hongkong's tourism retail industry. This also raises a new topic for the direction of Hongkong's overall economic development.

    It's hard to say when the retail winter will end.

    Sasa recently released the sales data of the eleven golden week, and issued an earnings warning at the end of September. The net profit in the half year ended September dropped by about 35% to 45%, mainly due to the decline in sales and gross profit in Hongkong and the Shanghai market, the weakness of some overseas businesses and the decline in the profits of the group's e-commerce. In addition, from the second quarter of July to the end of September, the total retail and wholesale business turnover decreased by 2.3% compared with that of Hong Kong and Macao in the same period. market Turnover fell by 2.9%.

    I.T has also released interim results recently. Data show that as of August 31st, the total turnover of I.T increased by 7.4% to 3 billion 643 million 200 thousand yuan over the same period last year. However, the total retail revenue of Hongkong's retail market dropped by 2% to HK $1 billion 540 million, while the total sales area decreased by 2.7%, which could reduce the sales of comparable stores by 0.9%.

    Chen Huijun, executive director and chief executive officer of I.T, pointed out that the rental and salary in Hongkong were still high, and the operating environment in the first half of the year was still difficult. It is estimated that the sales volume of Hongkong will decrease in the second half of the year. He continued that the sales performance of Hongkong's eleven golden week this year was also less than that of last year, and it is hard to predict when the "retail cold winter" will end.

    Price reduction and layoffs are inevitable.

    The height is not cold. From last year, Hongkong Luxury goods The market continues to play the "people first" brand - Dior, Chanel, Prada all cut prices in Hongkong. In September this year, the British luxury brand, Boboli, whose performance was very strong, cut prices in Hongkong by 10% to 15% for classic handbags and some new products in early autumn.

    Nevertheless, the recent development of Hongkong's retail industry is "no coldest, only colder". The statistics office of the Hongkong Special Administrative Region recently released its retail sales in August 2016. In August 2016, the value of total retail sales was estimated at 34 billion 600 million Hong Kong dollars, down 7.7% compared with the same month in 2015. This is the 18 consecutive month of decline in retail sales in Hongkong. Compared with the same period in 2015, the total retail sales value of the total retail sector in Hongkong fell by 10.2% in the 8 months of 2016.

    Now more and more companies are starting to encourage all front-line salespeople to open WeChat accounts and send product information in a circle of friends. Through this "micro business" mode, salesmen can earn a certain commission. Unlike the general micro business, whether customers use WeChat payment or Alipay, they all receive money from the company's official accounts, but they no longer increase their prices.

    Zheng Weixiong, chairman of the Hongkong Retail Management Association, has revealed that many companies are planning to lay off staff. If the retail performance continues downward after Christmas and new year, there will be massive layoffs next February or March.

    Hongkong's economy needs new runway

    As far as Hongkong's situation is concerned, with the changes in the structure of visitors from the mainland, post-80s and post-90s have become the new force of outbound tourism. However, at present, Hongkong's tourism retailing industry has continued the usual way of doing business in the past more than 10 years. Some businesses have failed to rise or fall in terms of service characteristics, level and quality, and there are no new ideas in other areas. The original tax and price advantages are also decreasing, which naturally reduces the attractiveness of the new force.

    A broker issued a research report that many visitors to Hongkong are no longer for shopping, but purely for entertainment. Many tourists have changed their consumption concept. They are more concerned about Hongkong's diet, culture and characteristics, so they are not optimistic about the retail market.

    Insiders also said that in the past, many mainland customers went to Hong Kong to take part in the tour group. Most of them came to buy, buy and buy. Now, most of the free tourists are not shopping in Hongkong. Even if they come to Hong Kong for shopping and consumption purposes, most of their purchase behaviors return to reason, and more people turn to the deep experience of traveling to Hong Kong.

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