Hong Kong was once a mecca for 홍콩명품(Hong Kong luxury goods). Changing shopping trends are forcing retailers to to refresh their tenants. Now, it has become hard to spot the long queues of the Chinese trying to get inside Prada and leave laden with luxury and branded items.홍콩명품 retail is very important as it accounts for 5-10% of global luxury retail. Many major global luxury dealers view Hong Kong as one of the best lucrative destinations for luxury sale.
Current Scenario in Hong Kong
Widespread anti- Chinese protests have worsened the situation where the retailers have started laying off the staff and asking for a reduction in the rents. Consequently, the stock prices of retailers have drastically dropped. The feeling of animosity amongst the Chinese tourists have been dragged into the scenario for months now and hence not visiting Hong Kong anymore. The previously very busy Hong Kong International Airport has canceled twice the flights and hammered the ticket prices as protestors took to themselves to block roads. Other than the protests, the Chinese yuan has also weakened and the Chinese have shifted the shopping more into the mainland from the island of Hong Kong as in the mainland the taxes have been reduced and there has been an advent of e-commerce there. Because of these reasons, Hong Kong has seen the steepest falls in retails in the past years now.
Can E-Commerce be the Savior?
홍콩명품 retailers can start investing in e-commerce in the wake of such a bleak situation though there are far many reasons to not to go into e-commerce. Like the fact that Hong Kong being a small place and hence the shops being near and just a few minutes of walk away. And that the sales through e-commerce would just account for a paltry amount of the actual direct sales. Besides these, it requires upfront investments and mobile payment technology that never took off in Hong Kong. But the pros of e-commerce are:
- E-Commerce can improve the sales for the retailers weather the storm.
- Crosse border e-commerce enables the luxury goods retailers to ship goods to the Chinese through better logistics channels and lower taxes.
- It enables the retailers to reach out to their customers even at their homes which helps to establish a loyalty bond with the customers proving to be helpful in the long run.
- Helps customize a strong customer experience for native customers.
- Can show off the curated luxury goods with the help of creative videos to the Chinese customers.
- Through e-commerce, retailers can stand out by showing such a dedication to the Chinese customers and can appeal to them as a very good option.