Long Queues Do Not Appear In Luxury Stores In Hongkong

Foreign media said that in Hongkong, Harbour City on weekends is always bustling.

Faced with such a scenario, it seems overstated to talk about the economic downturn.

But compared with 2014, this shopping mall is quite quiet.

At that time, mainland tourists queued up to buy luxury goods to boost sales. Harbour City's sales accounted for nearly 1/10 of total retail sales in Hongkong.

According to the Financial Times website May 22nd, recently

The figures in the retail industry are disappointing.

According to official figures, with the mainland tourists seeking new consumption experiences in Seoul, Tokyo and Paris, the retail sales in Hongkong dropped by 21% in the same period in February.

Excluding price changes, this is the largest year-on-year decline in retail sales in Hongkong since September 1998.

Zhou Dafu, the biggest jewelry chain in China, said in May that its profits would drop by 40% to 50% due to the "lower consumer sentiment in Greater China".

The report said that despite the rapid changes in Hongkong's fortunes (in 2014, when Harbour City was the largest shopping centre per square foot in the world), it was unlikely that it would be completely replicated elsewhere, but it led luxury industry observers to realize that China's interest in high-end products and experiences could change much faster.

Analysts believe that there are several factors that lead to changes in Chinese consumption habits, including exchange rate changes, but more important factors are related to changes in habits and tastes.

"Luxury experience is not just a shopping experience," said Alan Fisher, director of consumer and Gaming Research at CLSA.

Hongkong has all the luxury brands and some fast consumer brands, but the mid-range brands are not rich, and museums and cultural activities are also very limited.

If you go to Tokyo, Seoul, Paris or Milan, there will be much more choice. "

It is reported that in the past year, the world

There are different situations in Chinese consumers.

According to the "investment reference" of the annual report on China's outbound travel, the popularity of Chanel (Chanel) has risen, and 26% of the respondents bought the brand, up from 20% in the previous year.

Other winners included Coach, Herm s and Gucci (Gucci), while Dior (Dior) and Armani (Armani) lost some market share.

Odd Busse, the founder of LBB Asia, a luxury consultancy, said that "luxury brands like Chanel or Louis Weedon will be in China when they enter the Chinese market later."

It will take years. "

Reported that the above report believes that the popularity of Chanel's promotion is mainly due to its bold price reduction strategy.

Chanel has lowered the price of some products in mainland China and the hot overseas markets including Hongkong, with a maximum reduction of 20%.

On the one hand, this is to make up for the difference caused by the depreciation of the euro against the renminbi, and on the other hand, to combat the sale of the products by the unauthorized retailers in the "gray market".

Driven by exchange rate advantages, Japan and South Korea are especially popular with Chinese tourists.

According to CLSA's price tracking, 12 months ago, the price of the same commodity was higher than that in Tokyo.

About 20% lower, and the long-term data show that the average price of Tokyo is about 20% higher than that of Hongkong.

Recently, however, the appreciation of the yen against the US dollar means that the price of Tokyo will again be higher than that of Hongkong, with a maximum of about 10%.

The report said that for the luxury industry, more importantly, last year marked a huge change in the consumption habits of Chinese tourists.

According to the "investment reference" data of the investment research service department, since the first survey conducted by the agency in 2013, the total consumption of Chinese tourists in accommodation, catering and entertainment for the first time exceeded that of shopping.

The amount of overseas shopping consumption of Chinese tourists decreased by 6.9% over the same period last year, which reached 10% among the wealthier tourists.

Analysts believe that the reason for this is that Chinese tourists have experienced more and more tourists.

Spencer Leung, a consumer industry expert at UBS, said: "when I first went to Paris, I bought a suit from Hugo Boss, because I can afford it, and this is my first time to go to Paris." (Boss)

Now I go to Paris to buy some coffee instead of a suit. "

Liang believes that in recent years, the sharp rise in overseas travel and the popularity of popular brands are due to the long-term consumer demand in China.

Over the years, Chinese wealth has been increasing, but overseas travel has been limited.

Mr. Liang said: "we have not seen similar situations elsewhere. Such a strong demand is suppressed.

For the Chinese, it was not until many countries began competing to attract Chinese tourists and relaxed visa restrictions in 2012 that the speed of opening the world to Chinese people was greatly improved.

Changes in consumer habits in the West also appear in Chinese consumers, especially in the fashion industry.

Young consumers are becoming more and more interested in finding the right brands online, which does not even require flagship stores or other physical stores to boost sales.

The report says that one of the most outstanding challenges in pricing and retaining Chinese consumers is the pace of change that cannot be kept up. Companies that cater to Chinese luxury goods are struggling to keep pace.

Although there are no longer queues to buy luxury goods in Harbour City, but this year, with the help of the overall shopping experience strategy last year, the shopping center still has higher incomes and higher profits than during the boom period.