The South China Morning Post reports a slowdown in luxury sales in Hong Kong. What used to be a city renowned for luxury shopping, today, Hong Kong is the destination for mainland Chinese shoppers who are searching for great bargains. Shops like Zara, Topshop, and other Outlet stores are being hoarded by shoppers, of which majority are still mostly from the Mainland.
But which aspect of the Hong Kong luxury industry has been hit the most? According to Pambianco News, "Hong Kong, one of the world's most important markets for luxury watches, is feeling the effects of the slowdown in demand by Chinese travelers. Three major luxury watch retailers report stocks piling up and a direct hit on profits.
But the luxury sector all around, has not been having a great year so far. Even luxury magnate LVMH Moët Hennessy - Louis Vuitton, has reported a slowdown in sales, claiming demand for the last 10 months was 'flattish'. In response to this, some luxury firms have resorted to a 'casino approach', flying in their biggest customers to Hong Kong in order to gain as much sales as possible.
Despite this slowdown in demand for luxury goods, China's market is only still growing, particularly the middle class. This shift in wealth has been changing the retail industry in both Mainland China and Hong Kong, and only time will tell in what direction this shift will be taking us. Will China return to becoming a luxury-hungry market, or does this mean a decline in interest altogether? |
