Heightened tensions in Hong Kong: the luxury industry threatened

Heightened tensions in Hong Kong: the luxury industry threatened

Since the 27 and 28 September, the “revolt of the umbrellas” who opposed the students to the authorities of the territory has mobilized in the streets of Hong Kong tens of thousands of demonstrators. They have blocked all the celebrations marking the creation of China as well as the Golden Week (1 October) which is the national holiday, long-awaited moment by the Chinese workers because it is a privileged moment for shopping of luxury in Hong Kong, place dutyfree. “The Golden Week represents for some luxury brands up to 20% of their annual turnover”, found Arnaud Cadart. Because of the events, the city center has suffered a paralysis of transport and the closure of many businesses, including luxury shops.

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However, the ex-British colony is one of the strongholds of the global luxury. “The market Hong Kongers weighs for more than 10% of the world market of luxury”, considers Arnaud Cadart, analyst at CM CIC. As much to say that the revolt which thunders on this rock is shaking the staffs of the luxury in Paris, Milan or Geneva.

Cosmetics, leather goods, ready-to-wear will be affected by this popular revolt. But it is the watchmaking industry that risk to pay the brunt. A shows on five sold in the world is purchased in Hong Kong. That is the biggest market for the export of Swiss watches. For certain brands such as Cartier, Hong Kong may weigh up to 15% of their turnover watchmaker.

In watchmaking, this local crisis intervenes after a year already difficult in China marked by an erosion of the consumption of luxury watches. “The stocks are at the highest”, tip Jon Cox, analyst at Kepler Cheuvreux. The anti-corruption laws were decreed in Beijing have significantly helpedto slow down this market.

Because of this revolt, all eyes are now doors on tourist flows chinese: “We can wait for a deferral to Macau, Tokyo and Dubai”, se reassured Jean-Claude Biver on tour in the Emirates.

Mariangelina Scigliano

mariangelina scigliano