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    Hongkong Market Is Weak And Luxury Goods Do Not Know What To Do.

    2017/2/19 15:43:00 28

    HongkongEconomic SituationLuxury Goods

    Although the Hongkong tourism market is going to be warm during the Spring Festival this year, whether this phenomenon can be maintained is still a problem.

    Since the opening of the mainland personal tour in Hongkong in 2003, the mainland tourists have become the main force of local consumption.

    But because of the increasingly fierce tourism competition in neighboring countries such as Japan, Korea and Thailand, the mainland tourists who originally focused on shopping in Hongkong were shunted out.

    The "occupy middle" and Mong Kok riots also made the tourism industry worse.

    With the "May 1" long vacation no longer exists, and the establishment of a free trade area in many mainland cities, Hongkong tourism industry is also associated with the establishment of a free trade zone.

    Retail

    Inevitably affected.

    Over the past year, many luxury companies reported Hongkong's weak market:

    The Hong Kong and Macao business of opening the cloud decreased by 16% compared with last year, and sales of watches and watches declined.

    LVMH group's chain duty free shop DFS suffered cold wave in Hongkong, becoming a rare loss item in the financial report.

    Both Prada and Hongkong listed the Hongkong market in the performance report. Although the situation has improved since last year, it is still pulling the hind legs of the Asia Pacific region.

    As of December last year, Hongkong's retail industry has been down for 22 consecutive months.

    RalphLauren, Coach, Prada, Abercrombie&Fitch and other brands have closed some stores in Hongkong to reduce the market budget.

    In order to reduce the loss caused by the vacancy rate, Hongkong's retail owners had to promise to reduce rent.

    According to the latest report of EverbrightPropertyInvestmentConsultancy, a part of the property investment consulting company, the rent in some areas has been cut by half.

    For example, Zhou Dafu gave up the Wang Pu shop on the South Street of Hongkong Sai Yeung Choi, which was vacant for more than 5 months and was taken off by the makeup brand Sasa at 45% rent.

    The secret of American underwear brand Vitoria will be settled at the original Forever21's flagship store in Hongkong at HK $8 million, which is 42% lower than the original price.

    Although the brand name Tissot of the watch brand has been renewed, the monthly rent has been reduced to 60%.

    This year, Hongkong

    retail

    Rents in central, Tongluowan, Tsim Sha Tsui and Mong Kok were reduced by 22% in the four major gold trading areas, with the largest decline in Tongluowan, 26%.

    Russell street, the world's most expensive commercial street, now costs only HK $1336 per square foot.

    Compared with the peak of 2013, it was reduced by 49.1%.

    In the cold wave, cosmetic brands began to gain the upper hand, taking advantage of the high-end jewelry.

    Wrist watch brand

    The gold is flourishing.

    Sasa rented Zhou Dafu shop is a typical case. In addition, KikoMilano and NYX have opened the first store in Hongkong.

    The Korean cosmetics group, which owns Laneige, snowflake show and Edith's house, recorded a two digit growth rate in Hongkong last December.

    "We are fast approaching the end of the dark tunnel."

    ThomsonChengWai-hung, chairman of Hongkong Retail Management Association, predicts that the market rebound will still have to wait until 2018. "It is hard to say that it will rebound with L, V or U curve".

    The Everbright report predicts that the retail rental market in Hongkong will probably decline by 5% this year, while the top four big business circles may face a negative growth of 5%-8%.

    For more information, please pay attention to the world clothing shoes and hats and Internet cafes.


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