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Home / World / Luxury goods plummet in Hong Kong due to protests

Luxury goods plummet in Hong Kong due to protests



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Media Title Riot police clash with demonstrators in the Hong Kong shopping center.

The luxury brand Richemont is the latest company to report ongoing protests in Hong Kong.

The Swiss company announced that the political unrest in Hong Kong, a key market for its watches, has weighed on sales.

Retailers in the region are forecasting a sharp drop in sales due to protests this year, while tourism is also suffering.

Protesters filled the streets of Hong Kong last month with more protests expected this weekend.

The demonstrations were triggered by a delivery proposal that allowed people to be sent to mainland China for trial.

But they now reflect more general demands for democratic reform and ensure that Hong Kong's freedoms are undermined.

The sometimes violent clashes have disrupted the business in the city, a center for wealthy Asian buyers.

Unrest forced many shops to close and triggered widespread trading disruptions.

In a statement issued on Thursday, Richemont said sales in the Asia-Pacific region rose in the three months to June, with the exception of Hong Kong, where sales decreased due to recent street protests and the strength of the local dollar.

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Caption

Older demonstrators march on July 1
7 in Hong Kong

This week, the Hong Kong Retail Management Association (HKRMA) said most of its members had lost sales over the past month and predicted that more pain would occur.

"The unexpected closures of stores due to the protests not only led to a loss of revenue, but also had a direct impact on the income of retailers, particularly part-time workers and on a commission basis," states a statement by the HKRMA.

The group said July and August are the peak business hours for retailers, and as the protests continue and spread, "our members predict a double-digit decline in the coming months".

The Hong Kong Federation of Unions announced that the number of mainland Chinese tour groups dropped to 5,641 in June, according to reports of 7,800 monthly averages at the beginning of the year. Interest rates were up to 20% lower in June than in June Previous month, and projected interest rates could fall this month by 40% over the previous year.


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