🇬🇧

Hong Kong loses luster for luxury brands

Video Credit: Reuters Studio
Published on November 28, 2019 - Duration: 01:21s

Hong Kong loses luster for luxury brands

Luxury brands are scaling back in Hong Kong, long seen as the gateway to Chinese shoppers, and the reasons go deeper than the city's unrest.

Julian Satterthwaite reports.

Advertisement

Hong Kong loses luster for luxury brands

Louis Vuitton bags may be made in France.

But many of them are sold in Hong Kong.

It's long been seen as a key gateway to Chinese shoppers.

But now a new report from consultants Bain says posh brands are going cold on the city.

Hong Kong's political unrest is one reason.

That's caused big names like Burberry to shut stores at times.

As a result, Bain says luxury sales there will fall to 6 billion dollars this year - down from a peak of 10 billion in 2013.

But a deeper shift may also be under way.

Bain says some temporary closures will probably become permanent.

And that's not because Chinese shoppers have gone off luxury.

Bain says they make up 35% of sales in the sector - and about 90% of growth.

But now they're doing their shopping in their home cities.

A weaker yuan has made it more expensive to shop abroad.

And Beijing has cut tariffs and sales duties, eroding Hong Kong's advantage.

Overall, the luxury market keeps expanding.

Bain predicts it will be up 4% to 310 billion dollars this year.

But fewer of those dollars will be flowing through Hong Kong.

You are here


💡 One News Page Knowledge: Other News Mentions

Hong Kong

Special administrative region of China
The pro-democracy activist is “traumatised” after being arrested under a controversial security law.
Credit: BBC News - Published 4 hours ago

Carrie Lam says she has no bank account due to US sanctions, and pays cash for everything.
Credit: BBC News - Published 3 days ago



Beijing

Capital of the People's Republic of China
Beijing has introduced tough new laws which restrict the export of "controlled items".
Credit: BBC News - Published 12 hours ago

Beijing says remarks by the Pope about the persecution of China's Muslim Uighurs are "groundless".
Credit: BBC News - Published 6 days ago

Related videos from verified sources

Hong Kong protesters hold mass ‘Thanksgiving’ rally 01:46
Video credit: Reuters Studio - Published on November 28, 2019 

South Korea: North Korea Fires Two Short-Range Missiles Toward Japan 01:48
Video credit: CBS4 Miami - Published on November 28, 2019 

Hong Kong protesters stage peaceful demonstration in shopping mall 01:43
Video credit: Newsflare - Published on November 28, 2019 

You might like