Hong Kong’s fading fashion retail industry has seen the U.S. luxury brand Ralph Lauren quietly close its 20,000-square-foot flagship store in Hong Kong last week. More and more international brands are closing stores in cities that are not popular with Chinese tourists, and Hong Kong is the hardest hit.
In just over a month, at least three global fashion retailers have closed or planned to close flagship stores in Hong Kong. In addition to Ralph Lauren, American casual clothing brands Abercrombie & Fitch and fast fashion brand Forever 21 have announced plans to close flagship stores in Hong Kong. Coach also closed flagship stores in the city last year. .
According to industry analysts, there will be more and more international brands will stop in Hongkong market expansion. Luxury brands such as LV, Gucci, Chanel and Dior are highly publicized in the city, with LV owning eight stores in Hong Kong and Dior having 15 stores, including cosmetics. Pascal Martin, a partner at OC&C Strategy, explains that Hong Kong can no longer play a vital role in brand building in the mainland market.