what happened
In mid-May, Chanel signed an eye-watering six-figure monthly lease for retail space in central Hong Kong. Although the exact amount has not yet been disclosed, Hong Kong news outlets report that the French luxury home has agreed to pay more than $383,000 per month for the ground-floor unit located in Causeway Bay. Causeway Bay is a bustling retail and living district of Hong Kong, formerly occupied by Hong Kong. Retailers like Victoria's Secret and Forever 21.
gin take
While companies such as LVMH and Footlocker are losing their presence, In Hong Kong in recent years, Chanel seems to be taking the opposite approach.
The signing of a three-year lease for the Hong Kong Parliament Buildings comes as a French luxury retailer has signed a three-year lease agreement for Hong Kong's Parliament Buildings, as consumer sentiment and retail sales have improved significantly in the months since Hong Kong reopened its borders with China and the rest of the world. This shows that there is a renewed interest in
Hong Kong's retail sales jumped 15% year-on-year in April and 40.8% year-on-year in March. Meanwhile, Hong Kong welcomed more than 10 million tourists in the first five months of 2023, according to the Hong Kong Tourism Board.. Travelers from China and Southeast Asia have surged, with arrivals at more than 60% of pre-pandemic levels.
Visitors to the area contributed significantly to retail growth. Sales of jewelry and watches, the categories with the highest growth rates in April, increased by 75%, while cosmetics and apparel increased by 34.8% and 38.6%, respectively, the report said.. Total retail sales in the first four months of this year increased by 21.7% compared to the same period in 2022, according to the territory's Census and Statistics Service.
Chanel's purchase of one of Hong Kong's, or even the world's, most expensive retailers is not surprising given the region's border reopening and rapid retail growth. The French luxury home appears to be betting on the city's resurgence while avoiding other risks to the mainland. There's a good reason for that.Despite significantly increasing prices in recent years, Chanel reported double-digit growth in his In China just after the country reopened to the world.
Philippe Blondeau, Chanel's chief financial officer, said: “We maintain very good momentum in 2023, more or less at the same level as in 2022. International travel is clearly increasing for all nationalities. China has fully reopened its borders.” In an interview with Vogue Business last month.
The Jing Take reports on some of the major news stories and presents our editorial team's analysis of key impacts on the luxury goods industry. In our regular columns, we analyze everything from product drops and mergers to heated debates sprouting on Chinese social media.
