HONG KONG. The soaring number of mainland tourists to Hong Kong has helped reactivate downtown luxury brand stores and strengthened consumer trends according to retailers speaking to Xinhua News Agency. Lane Crawford, Sogo and CRC Department Store have become the most frequently visited stores for mainland Chinese shoppers in recent months. In particular Lane Crawford has experienced a renaissance since it was hit heavily during the financial crisis in the late 1990s, when it was forced to close branches and quicken privatisation steps.
Mainland tourists are already familiar with famous brands such as Louis Vuitton, Chanel, Giorgio Armani, Hugo Boss, Gucci, Prada and increasingly know where to find them in downtown Hong Kong. Local jewellery chains such as Chow Thai Fook Jewelry, Luk Fook Jewelry and Goldsmith have also been major beneficiaries. Cult brand Sa Sa Cosmetics experienced a +10% increase in sales at its 33 stores over the Chinese New Year Holiday period compared to 2002. Spanish retailer Mango and YSL are in the process of opening new flagship stores in Hong Kong.
Meanwhile this travel retail boom continues to run counter to weak local consumer demand, which is expected to continue for some time according to the reports. Hong Kong Tourism Board forecasts that the number of mainland tourists to Hong Kong is expected to rise by a further +8.4% this year, to nearly 18 million. Latest figures showed that a total of 16.57 million mainland tourists visited Hong Kong in 2002, up +20.7% and arrivals were up again by +31% last month, see also Data Room.
