Luxury Brands Accelerate The Shift Of Focus From Hongkong To The Mainland

< p > early 2012, < a href= "//www.sjfzxm.com/news/index_c.asp" > GUCCI < /a > the mainland of China was stripped from the Greater China area originally assigned to Hongkong as its regional headquarters, and it also controlled Macao and Taiwan and two markets.

After adjustment, the Hongkong office changed from the unified management of Hong Kong, Macao and Taiwan to the mainland market in the past. It only needed to be responsible for Hongkong's local market. In the same year, the LV was adjusted by Singapore. The Southeast Asian market, which was originally managed by the Hongkong headquarters in the Asia Pacific region, was managed by Singapore, while the mainland, Macao and Taiwan markets were taken over by the Shanghai office.

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Behind the action of P luxury brand, the luxury market forces in Hongkong and the mainland are changing. In 2012, luxury goods sales in the mainland were already two times more than that in Hongkong. Now, facing the mainland market, the profit contribution to Hongkong market has become more obvious. Luxury operators are shifting their focus further to adapt to the market changes.

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< p > mainland tourists are regarded as < a href= "//www.sjfzxm.com/news/index_c.asp" > luxury goods < /a > shopping paradise < a href= > //www.sjfzxm.com/news/index_p.asp > Hongkong < /a > is not as good as before.

According to data released by the government of Hongkong last year, although the number of mainland visitors to Hong Kong increased, the number of mainland visitors to Hongkong in July 2013 increased by more than 3 million 700 thousand people, an increase of 15.7% over the same period in 2012. However, the growth rate of retail sales in Hongkong was slowing down. In July, the volume of retail sales in Hong Kong increased by 9.5%, lower than the 14.7% growth rate in June.

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< p > in addition, the personal consumption of mainland tourists is also reduced than in the past. Sales of watches, jewellery and luxury gifts, which account for 1/4 of Hongkong's retail sales, increased by 28% over the same period last July. The increase was far lower than that in June, while the sales of high-end liquor and cigarettes in the same month decreased by 20% over the same period last year.

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< p > this phenomenon has emerged from the change of commodity rent in Hongkong. Hu Yongshi, executive director of the Hongkong Commercial Department of high latitude global real estate consulting company, said that the rental of shops in central and Tongluowan front-line lots in the fourth quarter of last year had dropped by 2%, and it is expected to be lowered by 5% to 10% in 2014.

But even if the rent has declined, it is still at a high level compared with other areas.

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< p > the key to the change of market focus is the obvious change in the mentality of mainland tourists. Although they are still keen on shopping in Hongkong and the demand for luxury goods is still booming, the interest in buying luxury goods seems to be weakening. Instead, attention is beginning to become their "new favorite" to the relatively low-end Hongkong local brand, more affordable and practical goods.

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< p > this is due to the strong economic strength of mainland tourists who went to Hongkong earlier than in the past. A new wave of mainland tourists is mainly concentrated in the new middle class. Their purchasing power is relatively weak. Besides, the price of luxury brands in Hongkong is not different from the mainland market in Beijing and Shanghai, but its local brands are nowhere to be found in the mainland.

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< p > plus more and more young consumers in the second tier cities in mainland China do not think that wearing luxury brands is a very good taste. Therefore, small brands with strong local sense of design are more popular, and the overall change of consumption grade will be expected.

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