Hongkong'S Tension Dragged Down Luxury Industry

Social tensions in Hongkong

Industry poses a serious threat.

The former British colony contributed about 10% of the sales volume to the latter.

Since June, there has been an unprecedented social controversy in Hongkong. At the end of September and early October, the confrontation between the police and the demonstrators had led to the closure of some luxury brands in Hongkong.

Luca Solca, a division of Bank Securities in Paris, France, said that "the escalation of the demonstrations deserves our investors' attention, because Hongkong occupies an important position in the turnover of the luxury industry".

The volatile situation has led to a sharp decline in Chinese tourists and a serious impact on many luxury brands, including the group, which owns Cartire and Van Cleef & Arpels brands.

Its sales in Hongkong account for 17% of its total turnover.

The analyst pointed out that "the present environment is extremely unfavorable to business."

Chinese tourists no longer come, and local buyers are worried.

He also said that if the situation deteriorated further, it would have the same serious consequences as SARS in 2003.

"This is not our main prediction, but the recent deterioration is not impossible."

Because

In the turmoil, Kepler Cheuvreux analysts lowered the growth rate of the Swiss watch industry from 5.5% to 3.5%.

LVMH, the world's largest luxury goods group, also has a large number of businesses in Hongkong, especially its DFS airport duty free business.

The group's sales in Hongkong account for 8% to 9% of its total turnover.

The leading brand of Kai Yun group, Gucci, accounts for about 10% of its total sales in Hongkong.

On last Monday's Paris stock exchange, LVMH group's share price fell 1.5%, Swatch (Swatch) group fell 1.97%, the peak group fell 1.7%, and Kai Yun group's decline was only 0.19%, because its brand Bottega Veneta and Saint Laurent developed rapidly and were less affected.

The political instability in Hongkong, coupled with the slowdown in the Chinese market (which also accounts for about 10% of the luxury industry), the decline in consumption of Russian tourists and the sluggish European market, make it difficult for the industry in the second half of the year.

A number of economic analysts have lowered the industry's growth forecast to 4% in 2014.

In 2013, the industry grew by 8%, and in 2012 it was 10%.

The Hongkong conflict entered the sixth day and just happened to be on the eleven golden holiday. Hongkong's retail industry took the lead.

Although Hong Kong stocks rose to a higher level this afternoon, some of the retail outlets that bought expensive jewellery in the demonstration area were still temporarily closed due to the conflict in Hongkong.

Goldman Sachs reported that the Hongkong international conference would be the worst if the conflict continued in Hongkong.

Goldman Sachs pointed out that Zhou Dafu, Sasa, Liu Fu group and Zhou Shengsheng, if they were closed by shops for three minutes in Hongkong, believed that the daily impact income reached 6 million yuan, 2 million 300 thousand yuan, 2 million yuan and 1 million 500 thousand yuan, accounting for 0.1% to 0.3% of the annual profit.

The Retail Management Association of Hongkong announced the preliminary sales data for the golden week on 6, and the average sales volume of retailers fell 30% to 40% over the previous year. Some businesses such as watches and shops with only one or two stores had a 80% decrease in business.

Subject to "

"The operation has affected many shops in Tsim Sha Tsui, Tongluowan and Mong Kok in the traditional shopping Mong District.

In the past golden week, the Guangdong Road, which was crowded with people, remained scattered until noon. Before the famous shops with queuing tides, there was no need to queue up. Tourists who had visited Hong Kong for many times indicated that they had never seen such a sparse road in Guangdong. A security guard said, "even if a passenger passes by, they will hardly enter the shop."

The chairman of the association, MAE Lai hung, said he was disappointed with the performance of the golden week.

Mai said that the association had inquired of 30 retailers. In the 5 days before the Golden Week holidays, business in the central, Admiralty, Tongluowan and Mong Kok areas, which were affected by the "occupy" action, dropped by 10% to 45%. Sales of clothing decreased by 15% to 50%, while jewellery and watches fell 28% to 45%.