How Many Luxury Brands Destroyed In The Failed Hongkong Market In 2015?

Yes

2015 marks the easiest time to make money in this market.

More or less, thanks to the Hongkong market, the Hongkong market, which is extremely depressed, has tripped many luxury brands and injured them badly.

It is Hongkong that has brought down the overall performance of Rui table export.

Hongkong is the largest Swiss watch import market in the world.

Imports reached a record 426 million 100 thousand Swiss Franc last October, but since then, retail sales have been in trouble, and imports from Switzerland have also been stagnant or even falling month by month.

According to Swiss watch export statistics released by the Swiss watch and handcraft Federation (FSWI) from January 2015 to November, in addition to the 5.4% increase in the largest export market for Rui watches in January, Hongkong recorded a double-digit drop in other months, of which May, July and October recorded a high drop of 33.6%, 39.6% and 38.5% respectively, which undoubtedly became the largest market dragging down the overall export volume of Rui table.

As the largest market and the most important market of Rui Bikou, Hongkong's performance really makes the whole table.

Feel cold.

The continued downturn in the Hongkong market is also related to the mainland's anti-corruption, anti water customers, stock market impact and Hongkong tourists' sharp decline.

The market is bad, the rent is too expensive, so they have to close the shop.

In August this year, Hongkong retail market was weak and rents were high. The TAG Heuer, a luxury watch group in France, announced its closure of Russell street in Tongluowan, Hongkong.

Tiger's decision seems to be the first Domino in Hongkong's Asian luxury center.

Then, in the early September, the US luxury brand Coach (Coach) also closed a flagship store at the junction of Queen's road and de Chi lap street.

It is understood that because of the situation of being unable to make ends meet, the decision to withdraw the store ahead of time is the first major brand to withdraw from the Hongkong market.

Coach opened its first global flagship store in central, in 2008, with a total area of 13000 square and three storeys. The rent was only HK $2 million 600 thousand and the lease was four years.

In 2012, the brand renewed the rent for 5 years, the rent was HK $5 million 600 thousand, plus the external wall advertising rent of HK $1 million 600 thousand, a total of HK $7 million 200 thousand, a 1.8 fold increase, almost three times the price.

On the one hand, the Hongkong market is in bad condition, and it also faces expensive rent pressure, which makes Coach have to withdraw shop ahead of schedule.

In November, Burberry announced that it had reached an agreement with Taigu real estate to reduce the size of its flagship store located at Pacific Place and close it.

The second level.

It is understood that Taigu Plaza is currently the most dismal representative of high-end department stores in Hongkong. In the three quarter, the retail sales of the mall dropped 13.7%, which is even more serious than the 12.7% decline in the first half.

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To reduce the size of the central flagship store, Carol Fairweather, chief financial officer of the Boli group, said it would increase the sales and profitability of the unit. He also stressed that the 17 brands of British brands located in the Hongkong market were all profitable, and that the sales in the three quarter had improved. However, he admits that they are still facing challenges and are talking about rents with property.

Early Christmas promotions but less than 25% for mainland tour groups

For Christmas, many luxury brands are generally not promoted, but it is hard to say in the depressed Hongkong market.

For example, Prada (Prada) launched a promotion in advance. The reason is nothing but bad performance.

Prada listed in Hongkong has been going downhill this year, and the market value of the group has evaporated. Prada has to make a Christmas promotion in Hong Kong ahead of schedule.

It is understood that there is no deadline for the sale, until the maximum discount is reduced to half off until all the goods are cleared.

In addition to Prada, Burberry launched its lowest half off promotions in Hong Kong, which is the lowest discount Burberry has launched in recent years. Even Burberry's salesmen lamented: 50 percent off discount is very rare for luxury brands like Burberry.

This is the largest discount since the opening of the Hongkong free travel visa.

Although the lowest half off promotions were launched in Hongkong, how did the business go? According to Hong Kong media, during the Christmas season, the number of mainland tours to Hongkong decreased by 25% compared with the previous years, from 400 tours in the past year to 200-300.

Dong Yaozhong, director general of the Hongkong Tourism Industry Council, expects that the data will not rise again during the new year's holiday. It is also concerned that the decline in the lunar calendar will continue. Only hope that individual tourists will still choose to travel in Hongkong.

For this year's Christmas holiday season, Dong Yaozhong said that the decline in figures may be due to the fact that Chinese tourists are traveling to the weaker currencies of Japan and South Korea, and that the mainland tourists have been killed in Hongkong.

In this case, I wonder if this Christmas promotion and the luxury goods without promotions are big.

In 2015, the unusually depressed Hongkong market dragged down the export volume of Rui table, and many luxury brands had to close their stores in Hong Kong, and Hongkong's anti water customers and mainland tourists were killed in Hong Kong, which also affected the promotion of luxury goods.

Perhaps the Hongkong market, as HSBC analysts say, is losing its position as a luxury center in the minds of Chinese luxury consumers.