Hong Kong’s luxury retail sector is undergoing a transformation as the city adjusts to a decrease in high-spending Chinese tourists and a shift in consumer preferences. Once a global hub for multi-brand department stores and ultra-luxury brands, the city is now facing challenges from competing shopping destinations, changing consumer behaviour, and the rise of online shopping, impacting the demand for luxury goods in the region.
Shift in Visitor Focus: From shopping to experience
Before the pandemic, Hong Kong attracted high-spending mainland Chinese visitors, boosting its luxury retail sector. However, the focus of visitors has now shifted from extravagant shopping sprees to a greater desire for local culture and experience-based tourism, according to Rosanna Tang, an executive director at Cushman & Wakefield. Overnight and same-day visitor shopping spend has significantly decreased, prompting retailers to redirect their focus towards food and beverage outlets.
“The focus of…
