Hong Kong Retail Reaches Pre-Pandemic Levels

RAPAPORT… Hard-luxury sales in Hong Kong have reached their highest level since before the Covid-19 crash as consumer sentiment rebounded and the government distributed shopping coupons.

Retail revenues from jewelry, watches, clocks and other valuable gifts jumped 23% year on year to HKD 3.53 billion ($452 million) in October, the municipality’s Census and Statistics Department reported Tuesday. Sales across all product categories rose 12% to HKD 30.72 billion ($3.94 billion).

The market benefited from an “entrenched economic recovery and disbursement of the second batch of electronic consumption vouchers,” a government spokesperson said. During the second half of the year, authorities handed out initial stimulus payments of HKD 2,000 ($256), followed by a second installment worth HKD 3,000 ($385) each.

The Hong Kong luxury market slumped during the pandemic, largely because of its reliance on tourist spending. While incoming travel is still restricted, local demand has picked up amid an easing of the territory’s virus outbreak. October saw Hong Kong’s highest hard-luxury sales total since January 2020, as well as its ninth consecutive year-on-year increase.

“As long as the local epidemic situation remains under control, the improving employment and income conditions — alongside the consumption-voucher scheme — should continue to support the retail sector in the near term,” the spokesperson added.

In the first 10 months of 2021, sales of jewelry, watches, clocks and other valuable gifts climbed 29% year on year to HKD 31.78 billion ($4.08 billion). Proceeds from all retail types rose 9% to HKD 288.89 billion ($37.05 billion).