Designer Apparel and Footwear (Ready-To-Wear) in Hong Kong, China

PROSPECTS

Designer apparel and footwear (ready-to-wear) returns to growth

Designer apparel and footwear (ready-to-wear) has returned to growth in current value terms in 2018 for the first time in three years. Sales of these products were hit by the drop in inbound arrivals from China and an economic slowdown in Hong Kong, with consumers turning to more affordable mid-priced brands.

Becoming More Competitive Owing to Internet Retailing and Fast Fashion

Although internet retailing has quite low penetration in Hong Kong, e-commerce is growing faster in designer apparel and footwear (ready-to-wear) than in many other categories. This is mainly because of the huge variety of clothing designs that are available.

High rents see brands turn to pop-up stores

Due to high property prices in Hong Kong there has been a growing trend for fashion brands to open up pop-up stores, rather than committing to a costly rental contract. These pop-up stores also allow brands to experiment with unique concepts to attract consumers.

COMPETITIVE LANDSCAPE

Brands open stores off the back of economic recovery

After a tough period in which some brands even had to close down some of their stores in Hong Kong, luxury designer brands are recovering thanks to the rebound in arrivals of Chinese tourists. As the category warms up, luxury brands are starting to expand their number of stores again, with a significant example being the opening of Hermès three-storey outlet in Hong Kong’s Central district.

Velveteen opens concept store for its luxury childrenswear

Luxury childrenswear company Velveteen opened its first concept store in Hong Kong in 2018. The store plans to hold fashion shows as well as running art and illustration classes, offering the opportunity to design your own doll’s clothes and providing ideas on how to use fabric scraps to make accessories.

Affordable luxury attracting interest

Due to the competition from fast fashion retailers some players have been looking to drive interest through offering designer apparel and footwear (ready-to-wear) at more affordable prices. For example, RDM, an Italian retail developer opened Florentia Village, a discount mall offering luxury brands, at KC100 complex near the Kwai Hing MTR station in 2017.

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