Personal Accessories in Hong Kong, China

Positive growth continues due to strong demand among visitors from mainland China

After 2018 saw increasing numbers of visitors to Hong Kong from mainland China, tourism flows continued to improve throughout 2019. Affluent middle-class Chinese people are increasingly waiting until travelling to Hong Kong before committing to purchases of high-priced personal accessories such as luxury handbags and high mechanical watches.

Companies begin to focus on younger consumers as the population ages

With the populations of Hong Kong and Greater China ageing, many of the leading personal accessories brands are looking to target younger consumers in order to ensure consistent demand moving forward. In particular, consumers from the Millennial and Generation Z cohorts are emerging as significant drivers of sales of luxury personal accessories.

Global brands lead in bags and luggage and watches, local retailers lead in jewellery

Within bags and luggage and watches, global luxury goods groups like LVMH Moët Hennessy Louis Vuitton, Kering and Richemont occupy leading positions with their iconic brands such as Louis Vuitton, Céline, Gucci, Bottega Veneta, Saint Laurent, Cartier and Piaget. However, three major local retailers Chow Tai Fook, Chow Sang Sang and Luk Fook lead sales in jewellery due to strong value sales of gold jewellery, driven by mainland Chinese tourists.

Store-based retailing to continue facing growing challenge from online channels

Although store-based retailing accounts for the very vast majority of retail value sales in personal accessories, internet retailing continued to record sales growth in the industry in 2019. One of the reasons for the low share of internet retailing in the industry is that Hong Kong is known as a shoppers’ paradise, with its compact territory and excellent transport options.

Ongoing positive growth expected as inbound tourist flows set to remain strong

The forecast period is set to see a strong performance for personal accessories. Sales are set to continue being supported by consistent increases in the numbers of inbound arrivals, with visitors from Mainland China and Macau likely to continue taking advantage of infrastructure developments such as the Hong Kong-Zhuhai-Macau Bridge and the high-speed rail link to the mainland to go shopping in Hong Kong.

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