Luxury Brands Gucci And Burberry Requested For Lower Rents in Hong Kong as Market Has Turned
With the turn of the tide, some things may lose their appeal – trends, as we all know, come and go. The iconic handbag we love right now (that’s totally a must-have) may not be the apple of your eye when you wake up next morning. At this point, the Hong Kong market is experiencing the same dilemma when it comes to being a desirable marketplace for wealthy Mainland shoppers – they’ve lost the touch they’ve had over the years as a premiere destination for designer brand shopping. Such awful news for a lucrative industry.
With this in mind, luxury brands Gucci and Burberry have made requests for lower rents in HK, with unprofitable store expansions and a slump in sales for some years now. They have to recover from their losses and make a sale, and in order to do such, they must make necessary budget cuts. This will affect the stock market largely, because if the influx of tourists and customers from China (which make up 75% of their yearly visitors) decreases, it will also decrease the value of stocks of other brands like Chanel and Celine. It’s a downward tumble. Imagine yourself as a shopper in HK, not finding the bag you’re looking for, which is obviously out of stock due to problems in sales.
What do you think about this news? Do you think luxury brands should rethink their choices when it comes to choosing where they branch-out? Should they pack-up and consider other places? Be heard!