Luxury brands retreat Hong Kong as mainland China shines

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Luxury brands retreat Hong Kong as mainland China shines

A number of luxury brands are more likely to make an outflux from the Chinese control island city of Hong Kong following a multi-month long violent protests in such a timeframe while a majority of rich Chinese shoppers had retreated to mainland China, a research report published by multinational consultancy firm Bain on Thursday, the 28th of November 2019, had unveiled, underscoring a latest tweak in the Chinese market, which was working out a plan to open its doors gradually to big-league investors worldwide.

Aside from that, Bain’s Thursday’s (November 28th) report had also revealed a substantial extent of transformation in the Chinese market which had every potentiality to reshape the landscape of global money markets, as sales growth for Hong Kong-based firms making luxury goods such as jewellery, high-end handbags and fashion items, had been dragged down to the bottom of their expectations this year, as Hong Kong turmoil had started off to take a heavy toll in the China-controlled city’s entire revenue generation, suggested Bain.

Besides, according to Bain’s Thursday’s (November 28th) report, global luxury goods’ sales were expanding by 4 per cent this year to €281 billion ($310 billion), however, remained at the lower end of Bain’s previous forecast of a growth between 4 per cent to 6 per cent and almost entirely pulled down by a heavy drag brewed off Hong Kong turmoil, while 2018 had witnessed a surge of 6 per cent in the sector.

Meanwhile, Bain was also quoted saying in its Thursday‘s (November 28th) report that the city of Hong Kong, which was harbouring around 1,000 luxury brands across the globe, would likely to witness a permanent shutdown of a majority of them, as a partner in Bain in Milan, Federica Levato said after reveal of the report, “Local customers cannot sustain the 1,000 stores in the mid-term, but for the moment we don’t see a true economic risk linked to China. ”