International retailers show great interest in Hong Kong market
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Foreign retailers catering to Hong Kong’s mass retail market are eager to secure shops in Hong Kong, which they consider as a mature market, said Maureen Fung Sau-yim, a director of Sun Hung Kai Development (China), a unit of Sun Hung Kai Properties.
According to Fung, the company has signed leasing contracts with 20 new international tenants this year at its APM shopping centre in Kwun Tong.
“Those brands, such as French shoe brands Bensimon and Palladium, as well as Korean fashion brand Stylenanda, have come to Hong Kong for the first time,” said Fung.
She said recently agreed rents in APM had risen 16 per cent to 20 per cent compared to leases signed one to three years ago.
Total retail sales growth declined 1.8 per cent year on year in the first five months of this year, against average growth of 11 per cent per year over the past 10 years, constrained by weaker inbound tourism.
Spending on jewellery and watches continued to fall, affected by the anti-corruption campaign in mainland China and the shifting pattern of mainland Chinese shoppers away from luxury goods and towards mass market products, according to property consultant JLL.
But a survey by consultancy Arcadis showed that Hong Kong was still an attractive place for retailers.
In its first report “Retail Operations Index: Where in the world could your retail portfolio thrive?” on Monday, Arcadis said Hong Kong was the most attractive location for retailers globally, followed by Singapore and Japan.
Asian countries dominated, taking three of the top five spots, the survey showed. It identified the locations that were the most and least difficult to execute, scale and flex large retail programmes based on an in-depth analysis of the global retail market in 50 countries.
SHKP plans to spend HK$150 million to upgrade the APM mall, which was established 10 years ago.
The programme, which is due for completion in 2017, includes an upgrade of technology, common and leisure areas and other facilities.
This article appeared in the South China Morning Post print edition as HK is top pick for foreign retailers
Questions & Answers
Q.Why are international non-luxury brands keen to enter the Hong Kong market, despite a decline in retail sales?
Why are international non-luxury brands keen to enter the Hong Kong market, despite a decline in retail sales?
These foreign retailers consider Hong Kong a mature market. A survey by consultancy Arcadis also found Hong Kong to be the most attractive location for retailers globally, ahead of Singapore and Japan.
Q.Which specific international brands are mentioned as new tenants in Sun Hung Kai Properties' APM shopping centre?
Which specific international brands are mentioned as new tenants in Sun Hung Kai Properties' APM shopping centre?
French shoe brands Bensimon and Palladium, along with Korean fashion brand Stylenanda, are among the new international tenants. These brands are described as entering Hong Kong for the first time this year.
Q.What is Sun Hung Kai Properties doing to its APM shopping centre to attract new business?
What is Sun Hung Kai Properties doing to its APM shopping centre to attract new business?
Sun Hung Kai Properties plans to invest HK$150 million to upgrade the APM mall. The improvements, due for completion in 2017, include upgrades to technology, common areas, leisure facilities, and other amenities.
Q.What factors are contributing to the decline in total retail sales growth in Hong Kong?
What factors are contributing to the decline in total retail sales growth in Hong Kong?
Total retail sales growth declined due to weaker inbound tourism. Spending on luxury items like jewellery and watches also fell, affected by mainland China's anti-corruption campaign and a shift towards mass market products by Chinese shoppers.
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