Hong Kong Retail Market Faces More Dangers

US media said, in Hong Kong, is really one after another. 2014 series of anti mainland and pro-democracy protests led to shops closed, and lead to mainland tour groups canceled reservations. At the same time, China’s economic slowdown and the anti-corruption movement and thrift let Chinese people to buy expensive brandy with the Gucci handbags more cautious in Hong Kong.

Although still the largest tour mainland outbound destinations, but Hong Kong is facing the danger of losing the top spot. Bloomberg Research data show that in 2014 the number of visitors to Hong Kong and the mainland of China since 2009, the growth rate was the slowest.

With the mainland of Hong Kong people to stay overnight in fewer quantities, in June, the Hong Kong hotel average occupancy rate for the ninth consecutive month of decline. “Pearl of the Orient” is also facing Thailand and South Korea and other regional rivals as well as the mainland tourist destinations in Shenzhen and Shanghai growing competition.

In addition, China from June 1 cut import tariffs on skin care products and sports shoes and other products, thereby reducing the attractiveness of Hong Kong as a cheaper shopping destination. Hong Kong retailers are directly affected and painful. First five months of 2015, retail sales in 4 months have declined, jewelry, watches and other high-end gifts are the most affected.

Burberry in Hong Kong, Causeway Bay and Tsim Sha Tsui shopping district store sale price of HK $ 18,500 (about HK $ 1 0.8 yuan – Note this newspaper) handbags and dresses of HK $ 24,000. The group said it might seek to reduce overhead in rent to offset the decline in Hong Kong’s worsening performance. Sale Cartier and Montblanc brands watches Emperor Watch and Jewellery, said that when the end of the lease end it may turn off one or two stores in Hong Kong.

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