Hongkong Market Has Become The Worst Hit Area For Every Luxury Group.

Retail sales in Hongkong have been losing ground, and retail sales have been down for 20 months by October.

The Hongkong government census and Statistics Department released a provisional estimate of the value of retail sales in October 2016, which was 36 billion 100 million yuan, down 2.9% from the same period last year.

The revision of the value of total retail sales in September 2016 is estimated to fall by 4% year-on-year.

Compared with the same period last year, the provisional estimate of total retail sales in the first ten months of 2016 decreased by 8.9%.

After deducting the price changes during the period, the provisional estimate of total retail sales in October 2016 fell by 2.7% annually.

The revision of the total retail sales volume in September 2016 is estimated to fall by 3.8% year-on-year.

Compared with the same period last year, the provisional estimate of total retail sales in the first ten months of 2016 decreased by 7.8%.

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The provisional estimates of the value of sales according to the main categories of retailers were analyzed from high to low. In October 2016 compared with October last year, the value of sales of jewellery, clocks and precious gifts dropped slightly by 0.1%, followed by department store products (sales value fell 0.8%), clothing (down 5.1%), drugs and cosmetics (down 1.8%), miscellaneous consumer durables (down 6.4%), electrical and photographic equipment (down 21.7%), automobile and auto parts (down 19.6%), newspapers, stationery and gifts (down 4.3%), and optical store (down 2.1%).

A government spokesman pointed out that the year-on-year decline in retail sales in October was further narrowed, which was broadly in line with the performance of visitors to Hong Kong this month.

Besides, employment

Stability and rising incomes of local residents also support the public's desire to consume.

According to the world clothing and shoe net, analysts said that although Hongkong's retail sales in October decreased year by year, the prospect of retail sales in Hongkong still depends on the performance of the tourism industry in Hong Kong and the impact of uncertainties in the external environment on the public's desire to spend.

Zheng Weixiong, chairman of the Hongkong Retail Management Association, quoted earlier as saying that retail sales had narrowed down "unhappily". Mainland passenger consumption per capita in Hong Kong is decreasing year by year, and the reduction of luxury purchases will continue to exert pressure on luxury and fashion retail performance.

Since the beginning of this year, the number of Chinese tourists entering Hongkong has been on the low side.

The adverse effects of sales have become the biggest obstacle to Hongkong's economic recovery.

According to the latest announcement by the Hongkong tourism board, the total number of visitors to Hong Kong in October was 4 million 953 thousand and 700, a decrease of 2.36% over the same period last year.

Among them, 3 million 723 thousand and 800 mainland travellers continued to fall for third months and decreased by 3.47% annually. It is noteworthy that the continued appreciation of the Hong Kong dollar is also inhibiting the consumption of mainland tourists in Hongkong.

Some analysts have pointed out that the prospects for retail sales in Hongkong are still uncertain in the near future.

Hongkong, once a strong luxury market, was affected by China's fight against corruption and domestic economic slowdown, coupled with the continuing turbulence in Hongkong's society, resulting in the reduction of mainland consumers' consumption to the city, thus affecting their sales. Hongkong's market has almost become the worst hit area of luxury goods groups.

A number of data show that Hongkong's fashion retailing industry is still in recession. Earlier, luxury brands such as Gucci and LV were demanding a rent reduction or closing stores.

Coach abruptly withdrew from the 4 Tier flagship store in central last year, becoming the first international luxury retailer to pull out of Hongkong's core stores in recent years.

There is a forecast that Hongkong's fashion retailing industry is showing signs of improvement, and shops rent will fall by at least 30% to 40%.

Last April, Adidas took over the store. Insiders said the final rent was about 5 million to 5 million 500 thousand yuan, which was 25% lower than that of Coach at that time.

Deng Juming, President and chief executive officer of Luxe jewellery watch and President of Luxury Retailing, admitted earlier that Hongkong's retail industry, like SARS, is not labor pains. It has no prospect. Now the number of mainland tourists has dropped sharply, and the rent of core areas has dropped by 30% to 40%.

At the beginning of this month, American fast fashion Forever21, which is a cheap selling point, will withdraw from the 6 - story flagship store in Tongluowan's JINGWAH center in Tongluowan, Hongkong, after the lease expires next year, taking over the American underwear brand Victoria'sSecret, which, according to news sources, plunged half to HK $7 million in monthly rent because Hongkong's clothing business is difficult to do.

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