Hongkong Volkswagen Commodity Will Drive The Retail Market In Hong Kong

It is not difficult to see from the sales figures that although the sales of high-end consumer goods have fallen significantly, the daily use of goods and some flat products still maintain a steady increase. This shows that as a free port, Hongkong's rich and diverse products are still recognized by tourists, and the future development is still promising.

It's summer vacation season, but there are no bustling tourists in Tongluowan Russell street.

Almost every store of gold and jewellery has discount information, and shop assistants often go out to shop to attract customers.

Such scenes were not common in Tongluowan before.

Reporters on the Morrison Hill Road in Tongluowan, a street shop door closed, a thick layer of dust on the glass.

Ms. Li, a staff member of a Chinese funded institution who has worked there for three years, said that the shop had been empty for more than a year. The last tenant's main women's shoes had already moved to other places because of bad business and high rents.

Tongluowan is one of the busiest and most sucking commercial districts in Hongkong.

According to the annual retail and rent survey report of high latitude world, Hongkong Tongluowan has become the most expensive retail shop area in the world in 2012 and 2013, and the average 2013 rental rate is HK $1948 per month.

However, since the middle of last year, the rental of Tongluowan has been showing downward trend, and there are more and more vacant shops.

In 2014, the average monthly rent of Tongluowan was HK $1778, which was grabbed by the most expensive retail shop in New York, New York.

Lin Yingwei, director of Hongkong commercial department, told reporters that from last June to now, the rental of Tongluowan street in Tongluowan has fallen by 40%, and the rental of Guangdong road in Tsim Sha Tsui has also fallen by 30%.

According to the insiders, the retail industry in Hongkong has to take measures such as reducing prices, integrating and closing stores due to the slowdown in the growth rate of mainland visitors, the rising exchange rate of Hong Kong dollar, the changes in the consumption structure of visitors to Hong Kong and the high rent.

Hongkong's attractiveness as a "shopping paradise" has weakened. It is expected that the rent of land shops in Tongluowan, Tsim Sha Tsui and Mong Kok will continue to slide in the second half of this year.

Monthly visitor statistics from the Hongkong Tourism Board showed that mainland visitors increased by 6% over the first four months of this year, while tourists from other countries or regions dropped by 4.4% over the same period.

In April, the number of mainland tourists increased by only 1% compared with the previous year, while the number of tourists from other countries or regions increased by only 0.4%.

"In the first four months of previous years, the number of mainland tourists generally increased by 15% to 30% a year, and this year the figure has dropped to 6%.

The attractiveness of Hongkong to tourists is not good news for Hongkong's retail industry. "

Lin Yingwei said.

Statistics show that in the first four months of this year, the value of total retail sales in Hongkong showed a marked decline, with jewelry, watches and clocks as the hardest hit areas.

In 1-4 months, sales of jewellery and clocks and watches in Hongkong fell by 17.2% over the same period last year.

and

Sales fell by 3.8% over the same period last year.

Only daily products, such as drugs and cosmetics, electrical and electronic products, and food, alcoholic beverages and tobacco, are still showing an increase in annual sales.

Luxury sales are getting cold in Hongkong, and many luxury brands are unable to calm down.

In February this year, Patek Philippe first released the "price reduction Manifesto", which sold the highest price in the Hongkong market by more than 20%.

Subsequently, more luxury brands began to shake off the image of "high cold" and compete for the "big price" drama.

Starting from Chanel, Gucci, Prada, Burberry, Valentino and other brands joined in the price reduction. The discount range covers all the shops in Hong Kong, with the lowest discount rate or even nearly half off.

"Mainland tourists

The number of outbound tourists who buy luxury brands is less and less.

Plus the reasons for the exchange rate, many tourists choose to go shopping in Japan and South Korea or Europe. Hongkong's attraction as a "shopping paradise" is not the same as before.

Lin Yingwei said.

"Before Tongluowan and other places, the rent is too high. Besides jewelry, clocks and watches, other middle end retail products and industries are unable to bear the rental cost. But with the coming market adjustment, we believe that rents will return to the relative rational interval, which is a good opportunity for creative industries and local fashion brands, and consumers can also buy more yuan and cost-effective products."