Designer apparel and footwear (ready-to-wear) saw sales plummet in 2020, largely as a result of the marked fall in inbound tourism due to the COVID-19 pandemic. Border measures implemented in late March and consumer concerns about exposure to the novel coronavirus through travel resulted in the number of inbound tourists from Mainland China, a key consumer group for designer apparel and footwear (ready-to-wear), dropping dramatically during the year.
While the dramatic drop in inbound tourism had a marked impact on sales of designer apparel and footwear (ready-to-wear) in 2020, demand from local consumers also fell significantly. Many local consumers steered clear of physical stores because of concerns about viral transmission through social contact.
The designer apparel and footwear (ready-to-wear) category experienced a slight fall in unit price in 2020 due to aggressive discounting conducted by high-end retailers in order to attract consumers in a challenging environment. High-end retailers, such as Lane Crawford, offered discounts of up to 50% on luxury footwear and apparel through their online stores.
The COVID-19 crisis and related dramatic fall in inbound tourism have forced luxury fashion brands in Hong Kong to focus their attention on local consumers. This has involved the closing of physical stores in tourist areas, such as Causeway Bay, TST and Central, with brands such as Prada, Valentini and Louis Vuitton encouraged to close stores in such areas because of high rental fees.
The weakening of consumer confidence and purchasing power due to the economic impact of measures to limit the spread of COVID-19 is combining with rising awareness of environmental issues to support increasing interest in pre-owned fashion. A more conservative attitude to spending and a focus on adopting more sustainable practices are enabling platforms selling pre-owned fashion to gain traction as consumers rethink their approach to shopping behaviour.
With consumers concerned about visiting physical stores because of the risk of viral infection, and increasingly utilising digital media for a wide range of purposes, including socialising, entertainment and shopping, luxury fashion brands have increasingly focused on the development of their digital strategies. Online fashion shows and haute couture launches, such as Le Mythe Dior from Dior, and Show in the Box from Loewe, earned high levels of recognition in Hong Kong, boosting consumer awareness and strengthening connectivity when offline retailing and events were heavily disrupted.
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Understand the latest market trends and future growth opportunities for the Designer Apparel and Footwear (Ready-to-Wear) industry in Hong Kong, China with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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This report originates from Passport, our Designer Apparel and Footwear (Ready-to-Wear) research and analysis database.
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