Sales of hard luxury were on the upswing in October as the employment situation improved and the government released new retail vouchers.
Revenue from jewelry, watches, clocks and valuable gifts climbed 14% year on year to HKD 4 billion ($512.5 million) for the month, the municipality’s Census and Statistics Department reported Thursday. The sharper growth followed two consecutive months of gentler increases amid tightened Covid-19 restrictions. Sales in all retail categories rose 3.9% to HKD 31.94 billion ($4.09 billion).
“The value of retail sales recorded an accelerated year-on-year increase in October alongside the disbursement of a new batch of consumption vouchers,” a government spokesperson said. “Many types of retail outlets saw improvement, with sales of consumer durable goods, and jewelry, watches and clocks, and valuable gifts registering double-digit increases.”
At the beginning of October, authorities distributed a third set of stimulus payments of HKD 5,000 ($640). The first set, issued at the beginning of April, also drove a 14% increase in hard luxury, while July’s fueled a 30% bump.
In the first 10 months of the year, sales of jewelry, watches, clocks and valuable gifts grew 1.5% to HKD 32.27 billion ($4.13 billion). Proceeds from all retail segments slipped 0.7% to HKD 286.75 billion ($36.71 billion).
“Looking ahead, improved labor-market conditions and the consumption-voucher scheme will continue to provide support to the retail sector, though tightened financial conditions will partly offset the effects,” the spokesperson added. “Moreover, as long as the local epidemic situation remains under control and the various restrictive measures can be relaxed in an orderly manner, consumption-related activities should gradually regain momentum.”
Image: The Mong Kok shopping district in Hong Kong. (Shutterstock)