Hongkong Harbour City'S First Decline In Retail Sales In 10 Years Is No Longer Brilliant.

It is understood that the retail industry in Hongkong has been declining. In January, the total retail sales value was about HK $43 billion 600 million, down 6.5% from the same period last year. The hardest hit areas are luxury jewelry, watches and so on.

Hongkong nine warehouse recently released a performance report, the group said that even if the market is not good, Hongkong investment property revenue growth slowed down, but last year revenue increased 7% to 12 billion 165 million yuan, business profit increased 6% to 10 billion 516 million yuan.

Among them, the overall income of luxury shopping malls in Harbour City (excluding hotels) increased by 6% to 8 billion 567 million yuan, and business profits increased by 6% to 7 billion 484 million yuan.

However,

Retail sales fell sharply by 12% in 2015, the first drop in ten years.

At a press conference in Hongkong, management at the company said that the retail market in the second half of 2015 had deteriorated significantly compared with the first half of the year, and expected to continue to be weak in the future.

Citing the news of Hongkong, Li Yufang, vice chairman of the nine warehouse, told a press conference in Harbour City that sales in Harbour City fell by 12.1% in 2015, worse than in the first half of 2015.

In January 2016, it was originally the peak season for traditional consumption, but sales in Harbour City's stores still fell by 12%, which was worse than the overall retail market in Hongkong.

Fashion retailer analysis shows that during the peak period of free travel, Harbour City's sales have repeatedly outperformed the big market. Now the market has been reversed. Harbour City has tried to introduce various luxury high-end brands in the past ten years. I believe that the nine warehouse will not change the positioning and pformation of shopping malls, and it will be quite difficult to change the tenant portfolio.

It has been declining for 11 months. According to the latest retail sales figures released by the census and Statistics Department of Hongkong, the total retail sales value in January was about HK $43 billion 600 million, down 6.5% from the same period last year, while the total retail sales value in December 2015 dropped by 8.5% over the same period last year.

One of the worst hit areas is the stable tenants of large shopping malls and street shops in the past.

The value of sales of such goods dropped by 16.3%.

At the end of last year, luxury brands such as Prada, Burberry, Chanel and other rare brands sold at least half off of Hongkong's shops. This is the largest concession since the liberalization of mainland tourists' visa in 2003, which highlights the declining trend of Hongkong's fashion retailing industry.

Some analysts have pointed out that Harbour City, as a landmark for mainland tourists to buy luxury goods in Hongkong, the first decline in retail sales in ten years means that Hongkong is losing its status as an Asian luxury centre.

Hongkong, once a strong luxury market, was affected by China's fight against corruption and domestic economic slowdown, coupled with the continuing turbulence in Hongkong's society, resulting in the reduction of mainland consumers' consumption to the city, thus affecting their sales. Hongkong's market has almost become the hardest hit area of luxury goods groups.

Hamilton Cheng, chief financial officer of Zhou Dafu, once said that the strength of the Hong Kong dollar compared to the US dollar continued to increase pressure on the market performance.

Hongkong, as a shopping destination, continues to weaken the attractiveness of consumers in mainland China.

As a shopping paradise, Hongkong's glory is no longer.

Rambourg, the author of The Bling Dynasty, points out that Hongkong is a familiar shopping destination for Chinese luxury consumers, while local mall tenants seldom try differentiated marketing strategies.

Now many Chinese tourists will choose Tokyo, Seoul and Taipei to enjoy the fresh shopping experience.