International Luxury Brands Settled In Hongkong To Attract Mainland Consumers

For Hongkong

These Mongolia bags are under the banner of Richemont.

Shanghai executive chairman Lei Fuyi said: "we are in the middle of the shop.

We have become nomads in Central China. "

Real estate brokers say the reason why the Hongkong retailer is losing is that the rent paid by Abercrombie&Fitch is about $1 million a month, 3 times that of Shanghai.

The US retailer is just a member of many foreign middle end retailers who are pouring into Hongkong. They ignore the fact that the average retail rents in Hongkong have risen by 25% this year, and have chosen to set up shop in Hongkong to attract wealthy mainland Chinese consumers.

CBRE, the real estate brokerage firm, said that the average annual rent of the shops in the golden section of Hongkong this year is 1700 US dollars per square foot, slightly lower than the golden section of Manhattan, the most expensive commercial area in the world, and the rent in Manhattan is US $1900 per square foot.

Sydney ranked third, at 1224 US dollars.

US apparel retailer Gap recently opened its first store in Hongkong. Among other US retailers, American hawk apparel has been opened in Hongkong, and the renovation of Forever21's first store is ending.

Meanwhile, European fashion companies Zara and H&M opened their stores in Hongkong in 2004 and 2007 respectively.

Compared with the total retail sales of China's $2 trillion and 200 billion last year, Hongkong

There are many companies in Hongkong that specifically introduce new brands into the mainland.

Roland Begg, a partner in Beijing management consulting firm (RolandBerger), said that by opening up stores in Hongkong and achieving good results, these brands could attract leading wholesalers to cooperate with them in the mainland of China, JasonDing.

In addition, retail analysts say that the brands that do well in Hongkong will have a certain prestige and trust for mainland consumers compared to those that have developed well in Shanghai or Beijing.

However, massive consumers from mainland China are the main attractions of Hongkong.

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According to the data of Hongkong Tourism Development Bureau (HKTB), in 2010, the number of mainland tourists to Hong Kong was 23 million, an increase of 25% over the same period last year, and their total cost in Hongkong was about 13 billion dollars.

This is the 17 time the mainland tourists spend in France in the same period.

A mainland tourist who came to Hongkong for the first time with her sister said: "I find that the price here is about 20% lower than that in Shanghai, because there is no tariff.

I also buy cosmetics and handbags in Hongkong because the quality is better, you know, you won't get fake goods here! "

These mainland consumers have played a big role in the rise of retail sales in Hongkong.

Hongkong's total retail sales last year stood at $42 billion, up from $39 billion 900 million in 2009.

According to government figures, Hongkong's total retail sales grew by 17% to 28% in the first 6 quarters alone.

The competition is so fierce that retailers find it difficult to find suitable shops.

Many of the best locations have been occupied by luxury brands.

Tiffany, Tiffany, Louis Weedon (LV) and Armani (Armani) and other high-end brands are the first Western retailers to open flagship stores in Hongkong at the beginning of this century. They are firmly focused on mainland China's demand.

Hongkong does not impose a luxury tax, which has led to the success of these stores. Some streets (such as Guangdong Road, Kowloon, Hongkong) are all dominated by luxury brands.

Hongkong's success has prompted some retailers to capitalize on capital market demand.

Italy fashion brand Prada (Prada), which has 8 stores in Hongkong, has been listed in Hongkong this summer, raising $2 billion 200 million, while the French cosmetics brand L'OCCITANE (L 'Occitane), which has 20 outlets in Hongkong, has raised about 700 million dollars last year through Hongkong listing.

Although the current stock prices of the two stocks fell by 6% and 8% respectively, compared with the initial price, investors' confidence in the Greater China retail market, the mainland, Hongkong and Taiwan, still helped them outperform the Hang Seng (HangSeng) index, which has fallen 22% this year.

More than 90% of the world's luxury brands are now located in Hongkong, so the latest batch of entrants often come from the middle end market.

Just a few weeks after Gap announced that North America was laying off 20% of its sales due to declining sales, the company opened in the latest store in Queen's road, Hongkong.

The store has an area of 15 thousand square feet, occupying 4 floors.

Queen's road is the busiest street in central Hongkong business district.

Gap has opened stores in Shanghai and Beijing nearly a year ago.

"Hongkong is one of the 3 key cities to introduce our brand into the Chinese market, but we need time to find the right place," said StevenSunnucks, director of international business at the San Francisco based clothing group. "Hongkong is one of the key cities to bring our brand into the Chinese market."

"Hongkong is the most capitalist region in the world, and everything here is for survival," he added.

Retailers who are coming here will soon find that if they do not work well, they will eventually become a landlord. "