Why Did The Past "Fragrant Pastry" Become Today'S "Hot Goods"?

Hongkong has always been one of the most expensive cities in the world with high housing prices and apartment rentals. But with its excellent geographical location and financial attraction, Hongkong has always been international.

Brand penetration into Asia

The first stop, and the central bank, as Hongkong CBD, has become the site of brand competition.

This situation reached a small climax in 2013. Real estate consulting company said that at that time several major global brands wanted to open their flagship store in central Hongkong, resulting in the rent of this area rising on the basis of not too low.

However, from the beginning of this year, these

I began to regret my decision and even wanted to sublet my store as soon as possible.

According to the world clothing and shoe net, Hongkong real estate developers say that because of the sharp reduction of passenger traffic and the reduction of sales volume, many international brands can not afford huge rents and plan to leave central.

Knignt Frank retail department director told the South China Morning Post reporter that it is a good time for other retailers to expand their rent while taking advantage of the landlord's search for tenants. "Now there is a black joke inside the industry: fashion brands can now open in any place in central, anyway, the tenants are ready to evacuate at any time."

In just three or four years, the fashion industry in Hongkong has been attacked in many ways, and has come to such an arduous situation.

Fundamentally speaking, the rising rent is the biggest reason why they choose to leave.

According to Market Wired, the rent level in central Hongkong has exceeded the peak period in 2008, and 126 Hong Kong dollars per square foot per month, which is equivalent to 1356 Hong Kong dollars per square meter, has reached the world's first level and is continuing to grow.

With a slight expansion, owners in Hongkong Russell street, Tongluowan and Tsim Sha Tsui area have to reduce their rents by nearly 60% for rent.

Cushman&Wakefield, executive director of the international real estate consultancy, told reporters: "after the departure of some of the big businesses on the street and the Queen's road, the shops have been empty for nearly a year."

At the end of last year, the flagship store, Abercrombie&Fitch, was closed on high street because of the high rent in A&F.

The classic American brand A&F opened a four tier flagship store in a headphone historic building in pall street in 2011, and signed a nine year contract to pay HK $7 million a month. The brand still chose to close the flagship store even though it had to pay a sum of HK $125 million for the first two years.

A&F flagship store in central Hongkong

In addition, the decline of Chinese tourists also directly leads to poor performance of the brands, and they are unable to make ends meet.

According to commercial website Enterprise Innovation, since 2014, due to changes in mainland China's policies and markets, Hongkong's luxury goods growth has slowed down, including the Chinese government's anti-corruption measures, the depreciation of the renminbi and the decline of GDP.

Retailers in Hongkong are not doing nothing about it. They are opening more "Limited stores", such as flash shops and concept stores.

According to the South China Morning Post, in the year 2016, the demand of Hongkong's international brands for flash shops increased by 50%. In Shing Shing square, Harbour City and Tai Koo square, there was room for brand flash shops.

At the same time, online retail brands also make up for the lack of offline customer experience in this way. They do not have to pay too high rent, but also enhance their customers' interest and recognition.

For this situation, Lin Qiao, executive director of Hongkong State Richard Ellis, said: "Hongkong's retail industry is undergoing structural changes."

In the past ten years, high-end brands have been filled with huge demand for luxury goods. In recent years, luxury brands have had to adjust their leasing strategies. This is an excellent opportunity for the mid-range brands to enter the golden section. In the coming period, the mid-range retail market will have great potential for growth.

More interesting reports, please pay attention to the world clothing shoes and hats net.