Access Asia has published this updated version of Retailing in Hong Kong covering the market and current state of development of the retail sector in Hong Kong.
The report covers the market for retail services in Hong Kong.Asian retailing suffered a disastrous downturn, in the latter half of 1997, leading to several years of economic turmoil, currency collapse and a general crisis of consumer confidence in the face of rising unemployment, economic uncertainty and a heightened fear for the future. However, Hong Kong has seen a strong recovery in 2000, and remains one of Asia’s major retailing centres with highly organised retailing, high penetration by foreign and domestic chains and modern forms of retailing such as convenience stores, discounting, supermarkets and home shopping. The real story in Hong Kong’s retail industry has been the response to the crisis in consumer confidence, spending and loyalty. How have the retailers responded to the new times? What strategies have they employed to maintain their customer base? Who is thriving and who has failed in the weakened economic climate? Hong Kong saw a fall in retail sales in 1998, and the closure of a number of large and small retailers. In 1999 and 2000, the market has begun to pick up with the addition of new non-food retailers into the market. However, the industry now faces a new challenge from Hong Kong’s booming e-commerce sector. By the fourth quarter of 2000, it was apparent that Hong Kong’s retail market had effectively recovered to pre-1997 levels. This was evidenced in sales as well as in rising retail rents and a resumption of a strong tourism industry.