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Hong Kong Luxury Sees Rare Drop
Jan 6, 2019 7:44 AM
By Rapaport News
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RAPAPORT... Retail sales of jewelry and other luxury items in Hong Kong
declined for the first time in 17 months as global economic uncertainties impacted consumer sentiment.
Revenues from jewelry, watches, clocks and other valuable
gifts dropped 3.9% to HKD 5.88 billion ($750.8 million) in November, the
municipality’s Census and Statistics Department reported Thursday. Sales in all
retail categories increased 1.4%, but growth was the slowest in more than 12
months.
“The generally moderated growth in retail sales in recent
months reflected more cautious consumption sentiment in the face of various
external uncertainties such as the US-mainland trade tensions, and volatilities
in the global financial markets,” a government spokesperson said.
Hong Kong-based jewelers Chow Tai Fook and Luk Fook raised concerns in November about the impact of the US-China tariff war and the
depreciation of the Chinese yuan on the region’s consumer demand. While proceeds from jewelry and other luxury
products jumped 16% to HKD 77.06 billion ($9.84 billion) for the first 11
months of 2018, growth slowed in September and October, according to government
figures. The November decline matches Luk Fook’s warning that its same-store sales had dropped in late October and November.
Retail sentiment could suffer further due to a drop in the
value of assets consumers own, as well as uncertainty in the global economy,
the government added. A positive job market and growth in Hong Kong’s tourist
industry — a major source of retail spending in the municipality — should
partly support the sector, the spokesperson continued.
Monthly sales of jewelry and other luxury products in the
municipality last fell in June 2017, when the market was recovering from a
slump in tourism in 2015 and 2016.
Image: A jewelry store in a Hong Kong shopping mall. (Shutterstock)
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Tags:
asia, Census and Statistics Department, China, Chow Tai Fook, clocks, Hong Kong, Jewelry, Luk Fook, luxury, luxury items, Rapaport News, retail, tourism, valuable gifts, watches
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