Hong Kong Latest News - Inside Retail Asia

Asia drives skin giant’s growth

After weeks of retail giants blaming Hong Kong for falling sales, global skincare brand L’Occitane says the city was one of its fastest growing markets in the first nine months of the financial year. In a filing with the Hong Kong Stock Exchange, L’Occitane, registered in Luxembourg, reported a 9.8 per cent global sales increase for the nine months to December 31. Sales in core Asian markets outperformed all other: In Hong Kong and Macau on a constant currency basis they rose 15.8 per …

‘Sudden slowdown’ in Hong Kong

Stelux Holdings, parent of watch retailer City Chain, eyewear retailers Optical 88 and eGG, has reported a “sudden slowdown” in Hong Kong at the end of 2014. In a statement to the Hong Kong Stock Exchange, Stelux said group sales of HK$974.6 million in the three months to December 31 represented a decline of 2.4 per cent year-on-year. It described the market conditions as “challenging”. “Our (Chinese) mainland watch retail operations saw turnover growth of around 20 per cent whil…

Hong Kong busts cosmetics fraud ring

Hong Kong Customs’ Intellectual Property Investigation Bureau have raided two retail shops of a syndicate selling suspected counterfeit cosmetics. Customs Officers seized about 100 items of suspected counterfeit cosmetic products with a total value of about HK$5000. Two female salespersons, aged 17 and 23, were arrested. Customs earlier received a complaint about the sale of suspected counterfeit cosmetics in the Mong Kok area. Upon investigation, officers raided two shops and seized items…

Beauty chain issues profit warning

Cosmetics and healthcare products retailer Bonjour Holdings has warned shareholders its profits will be down this year. The retailer blames disruption to the city’s commercial sectors by the Occupy Central protests of late last year and the widely recognised fall in tourism from mainland China. Hong Kong-listed Bonjour said its net profit could decline by between 10 and 20 per cent year-on-year. The company has more than 40 retail outlets, predominantly located in Hong Kong and Macau.…

Mainland city funds Hong Kong flagship

Chinese city Zhejiang has teamed up with two manufacturers to open a brand building retail store at Hong Kong International Airport. Brands of Zhejiang China focuses on travel-related products and is a joint venture between the Department of Commerce of Zhejiang Province and Zhejiang manufacturers Newcom travel luggage and GNT thermal containers from Newcomer Group and Pinghu Meijia Thermal Insulation Container Industrial Co. The government expects more brands to come on board in future an…

‘Significant decline’ in Richemont Asia sales

Luxury retail group Richemont says third quarter sales were down 12 per cent in Asia Pacific, on a constant currency basis. The company says worldwide sales in the quarter to December 31 were flat, with growth in Europe, the Middle East and the Americas offset by a significant decline in Asia Pacific. Swiss based Richemont is the world’s second largest luxury brand company and parent of the Dunhill, Cartier, Jaeger-LeCoultre, Montblanc, and Van Cleef & Arpels brands, along with onlin…

Sasa shoppers buy more, spend less

Sa Sa International says its customers spent less but bought more in the three months to December 31. The group’s retail and wholesale turnover decreased slightly by 0.5 per cent overall, with retail sales in Hong Kong and Macau down by 1.1 per cent and same store sales down by 2.7 per cent. But the number of transactions in its home market (Hong Kong and Macau combined) increased by 5.6 per cent in the same period, offset by a 6.4 per cent decrease in the average sale per transaction. …

Hong Kong weighs on Burberry

Luxury retailer Burberry says falling sales of high margin products in Hong Kong dented its latest quarterly earnings. While the group’s underlying revenue rose 15 per cent, and comparable sales rose by eight per cent, a robust performance in China and Korea was undermined by falling sales in Hong Kong. That fall was largely due to the impact of the Occupy Central democracy protests and slowing tourism numbers from China’s mainland, combined with the clampdown on gift-giving. Burber…

Hong Kong app bridges online, offline gap

Hong Kong based start up Popmap has launched an app allowing small retailers to bridge the gap between offline and online selling. For all the hype around ecommerce, most sales still happen at brick-and-mortar stores, reports technology news site TechinAsia.com. “Lots of startups are trying to bridge the gap between offline and online selling – and there are hundreds of different approaches to this challenge. “Hong Kong-based Popmap is tackling this by persuading small stores to list …

Australian book chain exits Hong Kong

Dymocks, the Australian franchised bookstore chain, is to abandon the Hong Kong market. The company will close its flagship store in the IFC Mall on January 25 according to an email to suppliers. With the flagship store’s closure, the Hong Kong operation, a joint venture between Dymocks and minority shareholder The SCMP Group (publisher of the South China Morning Post), says the brand will be phased out of the market. “With the closure of Dymocks IFC Mall, which has generated the majo…

Chow Tai Fook sales slump 10%

Hong Kong’s weakening luxury sales market saw jeweller Chow Tai Fook’s retail sales fall 10 per cent in the third quarter. Compared to the same period last year, the group’s same store sales of gem-set jewellery fell 12 per cent and of gold products by 21 per cent, although this was coming off the ‘gold rush’ which saw significant volumes of gold being traded in the preceding year. “The decrease in the same store sales growth of gem-set jewellery was mainly due to the weak cons…

Hong Kong label eyes Shanghai flagship

An edgy fashion brand launched by two Hong Kong brothers is eyeing its first standalone flagship store – in Shanghai. Brothers Eri and Philip Chu founded contemporary streetwear label Ground Zero which is now sold through 40 shops around the world, including I.T in Hong Kong. As the brand builds a following through its website, in stores and at fashion events, the pair is now planning a transactional website as well. Eri, a graphic artist by training, and Philip, who studied fashion de…

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