Luxury Goods in Hong Kong, China

Luxury goods continues its recovery

Luxury goods has continued to benefit from the economic recovery being seen in Hong Kong, with similar current value growth to that seen in 2017. The country has seen its lowest unemployment rate for 20 years while tourism, the backbone of Hong Kong’s economy, has seen strong gains in 2018.

Consumer confidence returns

After a slump midway through the review period the category has staged a recovery in 2017 and 2018 with consumer confidence returning and boosted by a rise in inbound arrivals, especially from Mainland China. Importantly, designer apparel and footwear (ready-to-wear), the largest category of luxury goods, has returned to growth in 2018.

Electric cars and “The China Dream” influence demand

Manufacturers of luxury cars continued to hold strong positions within overall luxury goods in 2017, with these vehicles carrying high ticket prices. In particular, Tesla witnessed exponential growth due to the growing focus on electric vehicles.

Internet retailing gains interest

Non-grocery specialists continue to account for most sales of luxury goods in Hong Kong in 2018. However, the biggest story remains the ongoing shift towards internet retailing, with a number of high profile brands establishing online shops over the review period.

Positive outlook for luxury goods despite challenges

The outlook for luxury goods in China appears bright with consumer confidence returning after a setback earlier in the review period. With President Xi Jinping’s aim of restoring prosperity to China it is likely that consumers will feel increasingly encouraged to spend, including on luxury goods.

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