Market Report Luxury Fashion Market Hong Kong

Page 1

L U X U RY FASHION M A R K E T

HONG KONG

INTERTWINED


IN THIS REPORT

I. Key Highlights II. The Market III. The Consumer IV. Strategies of Luxury Players V. Market Opportunities VI. Key Findings VII. Bibliography

3 8 15 20 23 29 30

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

THE 8 KEY HIGHLIGHTS

01

Hong Kong’s retail market moderates.

05

Luxury players actively build up online presence

02

Touristic spending becomes a strong driver of luxury spending

06

Social media becomes an important marketing tool

03

Affordable luxury gains increasing attention

07

Luxury retailers are keen to create an immersive in-store experience

04

Luxury consumers become more sophisticated

08

Sales channels see significant changes

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Key Highlights

01

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The Market

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HONG KONG’S RETAIL MARKET MODERATES The Hong Kong Retail industry had its worst sales record with a 1.8% decrease from January to July 2015. Social gifting has slowed significantly as a result of the government’s anti-corruption drive, and greatly affected sales of luxury goods. Additional factors that effect the retail sales are a milder GDP growth in China, weakening Asian currencies and the loosening of policies on travel for mainland Chinese.

The Consumer

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Strategies of Luxury Players

02

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Market Opportunities

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Key Findings

TOURISTIC SPENDING BECOMES A STRONG DRIVER OF LUXURY SPENDING Hong Kong still saw 16% growth in the number of mainland tourist arrivals for 2014 remains mainlanders’ easiest place to access for tariff-free shopping. And Hong Kong’s consumers have strong preferences for shopping luxury fashion overseas.

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Key Highlights

03

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The Market

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AFFORDABLE LUXURY GAINS INCREASING ATTENTION The high prices of some premium luxury brands have led to the fact that consumers look for more affordable luxury brands that are chic and stylish, but sell at cheaper prices, such as Coach, Michael Kors and Tory Burch.

The Consumer

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Strategies of Luxury Players

04

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Market Opportunities

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Key Findings

LUXURY CONSUMERS BECOME MORE SOPHISTICATED Hong Kong’s luxury consumers increasingly look for low-key, unique products instead of those with conspicuous logos. They also show more interest in home gown luxury products that emphasise local craftsmanship culture.

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Key Highlights

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The Market

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LUXURY PLAYERS ACTIVELY BUILD UP ONLINE PRESENCE As Hong Kong’s consumers are now used to getting product information, many luxury retailers have set up their online platforms. At the same time, increasing numbers of luxury brands choose to sell their products on third-party online shopping platforms.

The Consumer

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Strategies of Luxury Players

06

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Market Opportunities

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Key Findings

SOCIAL MEDIA BECOMES AN IMPORTANT MARKETING TOOL Many luxury retailers now use social media platforms such as Sino Weibo and WeChat to promote their latest collections and interact with consumers

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Key Highlights

07

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The Market

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The Consumer

LUXURY RETAILERS ARE KEEN TO CREATE AN IMMENSIVE IN-STORE EXPERIENCE Many luxury retailers now put more focus on creating an exceptional shopping environment and introducing lifestyle experience in their physical stores, hoping to enhance the attractiveness of their stores and draw customer

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Strategies of Luxury Players

08

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Market Opportunities

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Key Findings

SALES CHANNELS SEE SIGNIFICANT CHANGES Due to the big price discrepancy and relatively fewer choices of luxury goods in Hong Kong,“daigou” is gaining popularity. Around 15% of luxury goods spending in 2014 was realised through “daigou” channel in Hong Kong and at the same time, more consumers will buy luxury products via e-commerce Platforms

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

HONG KONG - HEART OF ASIA CONNECTIVITY TO THE WORLD

Beijing

Seoul Shanghai Taipai

Tokyo

4 HOURS

All of Asia’s key markets within 4 hours

Hong Kong Manila

Kuala Lumpur Singapore

5 HOURS

5 hours from half the world’s population

8 Source: Own grafic


Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

LUXURY FASHION GROWTH Economical Factors

FACTORS OF SLOWDOWN Political Factors

"Weaker spending power among mainland visitors is seen as the main reason for the weak data, while recent protests also hurt the shopping mood among many mainland tourists” Paul Tang , Bank of East Asia Chief Economist

•  Uncertainties looming in economic prospects in mainland China •  Local displays of anti-mainland sentiment

“The Chinese before used to buy the most expensive jewellery, but after the government’s anticorruption policy, they have shifted to mid-range products. [… ] We have seen a number of jewellers changing business models, where they will now offer more mid-range products in order to cope with changing consumer habits.” Joe Lin, executive director of Hong Kong retail services at Commercial Real Estate Services

•  China’s anti-corruption campaign •  Hong Kong government’s policy of controlling the booming influx of Chinese tourists

For this section, significant numbers couldn’t been found.

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

MIDDLE CLASS GROWTH The emergence and rapid growth of the middle class has already brought significant changes. Young people in Hong Kong constitute a new and powerful consumer force in their clothing market. Rising salaries among Hong Kong’s rapidly expanding middle class leave young adults with more disposable income than any previous generation an they are increasingly discerning in their clothing purchases.

2.500.000

INCOME BETWEEN 10.000 AND 40.000 HKD

2.000.000 1.500.000 1.000.000 Male Female Both Sexes

500.000 0 Source: Own grafic

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

BRITISH LUXURY DESIGNERS Source: Own grafic

Number of Stores in Hong Kong

2015

16 14 12 10 8 6 4 2 0

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

EMERGING BRANDS Analysts expect more foreign brands in Hong Kong In response to changing luxury climate some luxury malls have restructured with a wider range of emerging brands.

Analysts expect more new foreign brands will open shops in Hong Kong and could attract new shoppers on the hunt for fresh and young brands.

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

SUSTAINABILITY The EcoChic Design Award The EcoChic Design Award is the world’s largest sustainable fashion design competition challenging emerging fashion designer to create mainstream clothing with minimal textile waste. It is open for emerging fashion designers living in any country in Asia and Europe. “Each competition cycle takes designers on an education and design journey lasting several theory and design-packed months. […] This puts sustainable design talent in the spotlight and rewards the best with career-changing prizes to change the pattern of fashion.” Redress Hong Kong

1st prize: Designing an own capsule collection using up-cycled textiles for Shanghai Tang, China’s leading luxury brand.

Winner 2014/15: Kévin Germanier from UK 13


Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

Key Findings

SUSTAINABILITY Emerging designers are interested in sustainable fashion

95%

interested in learning more about sustainable fashion design

93% 95%

interested in sustainable fashion

sustainable fashion education is important for fashion designers

lack of knowledge about sustainable design techniques

37%

47%

lack of knowledge about environmental impacts of the fashion industry 14 Â


Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

SHIFTING CONSUMER ATTITUDE “China is the market to win for luxury brands. Brands need to understand that China’s ultra-wealthy are becoming more sophisticated and not just looking for flashy logos and brands that everyone has. Three years ago, everyone wanted Louis Vuitton. That is no longer the case.“

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Market Opportunities

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Key Findings

4

different types of luxury consumers in Hong Kong

Shaun Rein, founding and managing director of the China Market Research Group

“Aristocrats”-Consumer

Style Nationalists

Playpen Shoppers

Searchers

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

“A R I S T O C R A T S“ – C O N S U M E R Men (25-35 years)

Wealthy background

Only luxury

Influencing people

Style leader

BUYING BEHAVIOUR: •  Very critical in terms of quality •  Do not give second glances •  Money does not play a role •  Have to meet their lifestyle •  Decide fast and independently •  Also travel for shopping ENGAGING ARISTOCRATS: •  Want exclusive service •  Want an uncrowded environment

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

PLAYPEN SHOPPERS “Little Emperors”

Only child

20-30 years

BUYING BEHAVIOUR: •  Flexible style •  Flexible budget •  Inspiration and information via social media •  Do not want help from customer-service staff

Wealthy origins

Entertainment Seeker

ENGAGING PLAYPEN SHOPPER: •  Unique shopping experience •  Exclusivity and personalised products are important •  Active social media presence •  Discounts or gifts are key

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

BRAND CONSCIOUSNESS According to Euromonitor International, superrich consumers value exclusivity and authenticity over prices. Designer apparel categories will be likely to benefit from the growing consciousness of self-appearance amongst Chinese consumers. Hong Kong consumers are very brand conscious because in their culture, the face and the social status are crucial. Therefore, brands that can signal a higher social and economic status, they will be willing to pay a premium for them. A value share of 90% in luxury accessories was accounted for by luxury bags, with over two thirds coming from women’s luxury bags. Expensive designer handbags are amongst the most aspirational purchase items by mainland Chinese tourists as handbags are the most visible personal accessories that denote self-expression and social status.

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Key Highlights

The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

SUSTAINABILITY Hong Kong’s consumers attitude towards sustainable luxury garments and handbags Luxury garments

47.37%

Luxury handbags

47.37%

Would buy sustainable, but more expensive garments/handbags Sustainability when it comes to luxury garments/handbags:

63.16% 21.05%

50

54.56%

Neither

38.38%

Unimportant

15.79%

5.26%

Important

Would buy sustainable luxury garments/handbags from an unknown brand

78.95%

Would need to consider different criteria to buy sustainable luxury garments/handbags from an unknown brand

Are open for new sustainable luxury brands from Europe

63.16% 100%

5.56%

15.79%

73.68% 36.84%

Say it depends on different criteria

lack of consumer awareness about sustainable fashion

58%

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

IMPROVING STORE PRODUCTIVITY From aggressive stores expansion to improving store productivity Some global retailers are scaling down their expansion in Hong Kong due to slower growth in the luxury sector.

Some of them are shifting from scale expansion to improving existing store productivity.

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

I M P O R T A N C E OF S O C I A L M E D I A Social media becomes an increasingly important marketing tool Riding the boom of the e-commerce sector in Hong Kong, many luxury retailers are making huge digital marketing efforts to increase brand equity

Consumer in Hong Kong are becoming more technology savvy and are increasingly getting used to using social media to interact with brands, provide comments on products, and find new brands.

Number of Sino Weibo followers for selected luxury brands (18th March 2013) Total Weibo users:500 Million users

Source: Own grafic

0

100000

200000

300000

400000

500000

600000

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

CUSTOMER LOYALTY IS KEY Maintaining customer loyalty is the key to success Luxury brands rely a lot on repeat purchase, thus maintaining customer loyalty is crucial. It is common for luxury brands to offer special discounts or exclusive perks for their VIPs. To win the hearts of Hong Kong’s increasingly rich and luxury-loving consumers, many brands have launched specific products tailored for the market. 2013 was the Year of the Snake in China and several luxury brands have launched specific designed products bearing the image of the snake.

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

LANGUAGES OFFICIAL LANGUAGES: CANTONESE / ENGLISH

ENGLISH

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

CONNECTIVITY TO T H E WO R L D Hong Kong International Airport is one of world’s busiest passenger airports à  in 2013: 59,9 million passengers used HKIA

HKIA is connected to about 180 destinations, including 44 in the Mainland, through over 1000 daily flights by more than 100 airlines.

Number of visitor arrivals

70

60.8 Million Visitors in 2014:

60

+ 5,7%

50 40

Rest of the World

30

Mainland China

20 10 0

2000

2003

2005 2006

2007 2009

2010

2011

2012 2013

2014

24 Source: Own grafic


Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

TAX SYSTEM

NO

VAT/GST/Sales tax Capital Gains Tax Withholding tax on investment Estate duty Global taxation Wine and beer duty

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

BUSINESS-TO– CONSUMER •  Gateway to 3,7 million high-net-worth individuals (HNWIs) in Asia-Pacific •  Strongest wealth growth in Asia-Pacific at 12% •  Hong Kong – HNWIs up 36% •  Asia-Pacific accounted for 50% of the growth in global wealth since 2010 •  By 2020, est. no. of millionaires in Mainland China and Hong Kong will reach 3,7 million, an accumulated wealth of £9 billion •  Hong Kong is a strategic location for retail brand in Asia •  Being successful in Hong Kong has helped to build up brand awareness and credibility in the region 26


Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

FASHION CONSCIOUS CULTURE “For luxury brands looking to make headway into China, Hong Kong serves as a very attractive gateway. A blend of the East and West, Hong Kong is one of the most cosmopolitan and fashionable cities in the world. The high concentration of wealth and a very fashion conscious culture combine to make Hong Kong number one globally in clothing and footwear expenditures per capita. With the highest average order values in Asia and high cross-border sales volumes, there is significant appetite for high-priced, luxury goods in Hong Kong.” Mary Ransom, senior vice president, global marketing & consumer products at Borderfree

•  Hong Kong consumers spend 4x more on apparel than US counterparts. •  Rise in E-Commerce trends due to low government restrictions and because the city’s consumers are becoming more familiar with Western brands. •  With Google and Facebook as the top search engine and social media platform within the region, luxury brands can easily enter the country through already familiar online tactics. 27


Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

ONE COUNTRY TWO SYSTEMS •  Rule of law and independent judiciary •  Level playing field and no foreign ownership restrictions •  Political stability and pro-business governance •  The World’s Freest Economy for 20 consecutive years •  Hong Kong negotiates and sign its own economic and trade agreements and is a full and separate member of the WTO and APEC •  Free flow of information 28


Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

THE 8 KEY FINDINGS 01

02

03

04

Hong Kong is connected to half the world’s population

Luxury fashion sales is slowing down, but emerging brands rise

Growth of middle class

Luxury consumers become more sophisticated

Gateway to many Asian countries

Emerging brands will have big opportunities in the future Hong Kong market

Young people constitute a new and powerful consumer force

Luxury consumers increasingly look for unique products

05

06

Hong Kong consumers are very brand and fashion conscious

Hong Kong is Western oriented

Consumers spend a lot on apparel and prefer to buy brands that signal a higher social and economic status

People in Hong Kong speak English and have the same social media range than Western countries

07

08

No Taxes No taxes attract many tourists and lead them to buy more

Hong Kong is a strategic location for retail brand Being successful in Hong Kong helps to build up brand awareness and credibility in the region 29 Â


Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

BIBLIOGRAPHY Page 1: Designer Denim Jeans Fashion (2011). | Shanghai Tang 2011-2012 Fall Winter Campaign. [IMAGE] | Available at: http://www.designerdenimjeansfashion.com/2011/09/08/shanghaitang-china-campaign-2011-2012-fall-winter-designer-denim-jeans-fashion/ Page 2: Hong Kong Asia’s World City (2015). | Hong Kong Cultural Celebrations. [IMAGE] | Available at: http://www.discoverhongkong.com/eng/see-do/events-festivals/highlight-events/ cultural-celebrations.jsp Page 3-7: Bain & Company (2014). | Luxury Goods Worldwide Market Study. [REPORT] | Available at: http://www.bain.com/bainweb/PDFs/Bain_Worldwide_Luxury_Goods_Report_2014.pdf Clker.com (2008). | Biodegradable Symbol Clip Art. [IMAGE] | Available at: http://www.clker.com/clipart-24085.html Clker.com (2010). | Shopping Cart Clip Art. [IMAGE] | Available at: http://www.clker.com/clipart-shopping-cart.html Deviant Art (N.D.). | Growth Symbol. [IMAGE] | Available at: http://zeezedzee.deviantart.com/art/Wall-e-Directive-T-Shirt-175809970 Euromonitor (2015). | Luxury Goods in Hong Kong, China. [ONLINE] | Available at: http://www.euromonitor.com/luxury-goods-in-hong-kong-china/report Find Icons (N.D.). | Airplane Symbol. [IMAGE] | Available at: http://findicons.com/icon/557492/airplane_takeoff Hong Kong Government (2015). | Statistics. [ONLINE] | Available at: http://www.gov.hk/en/about/abouthk/factsheets/docs/statistics.pdf Iber China (2015). | Luxury Market in China. [ONLINE] | Available at: http://www.iberchina.org/files/Luxury_market_China2015.pdf Icons (N.D.). | Currency Symbol. [IMAGE] | Available at: https://icons8.com/2013/10/18/cad-hkd-sek-currency-sign/ Imgkid.com (N.D.). | Mouse Symbol. [IMAGE] | Available at: http://imgkid.com/computer-mouse-icon-png.shtml Pricewaterhouse Coopers (2015). | Outlook for the Retail and Consumer Products Sector in Asia. [REPORT] | Available at: http://read.pwc.com/t/162892-2015-16-outlook-for-the-retailand-consumer-products-sector-in-asia UX Repo (N.D.). | Android Store Vector Icon. [IMAGE] | Available at: http://uxrepo.com/icon/android-store-by-google-material UX Repo (N.D.). | Weibo Vector Icon. [IMAGE] | Available at: http://uxrepo.com/icon/weibo-by-zocial Page 8: Find Icons (N.D.). | Airplane Symbol. [IMAGE] | Available at: http://findicons.com/icon/557492/airplane_takeoff Invest Hong Kong (2014). | Hong Kong for Business. [ONLINE] | Available at: http://de.slideshare.net/SCOTTMAI1/hong-kong-for-business

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Key Findings

BIBLIOGRAPHY Page 9: Business of Fashion (2013). | China’s Anti-Corruption Campaign is Masking the Real Causes of theLuxury Slowdown. [ONLINE] | Available at: http://www.businessoffashion.com/articles/ global-currents/chinas-anti-corruption-campaign-is-masking-the-real-causes-of-the-luxury-slowdown Cushman & Wakefield (2015). | Marketbeat Retail Snapshot. [ONLINE] | Available at: http://www.cushmanwakefield.com/~/media/marketbeat/2015/08/hongkong_retail_2q15.pdf Deviant Art (N.D.). | Growth Symbol. [IMAGE] | Available at: http://zeezedzee.deviantart.com/art/Wall-e-Directive-T-Shirt-175809970 Fashionbi (2013). | Anti-gifting Policyin China: How are Luxury Brands Affected. [ONLINE] | Available at: http://fashionbi.com/insights/marketing-analysis/anti-gifting-policy-in-chinahow-are-luxury-brands-affected Global Compliance News (2014). | Hong Kong Anti-Corruption Briefing. [ONLINE] | Available at: http://globalcompliancenews.com/hong-kong-anti-corruption-briefing-20141216/ Hong Kong Business (2015). | Retail. [ONLINE] | Available at: http://hongkongbusiness.hk/retail International Business Times (2015). | China Slowdown: Hong Kong Luxury Retailers Feel Pinch As Mainlanders Travel Less Frequently, Spend Less. [ONLINE] | Available at: http:// www.ibtimes.com/china-slowdown-hong-kong-luxury-retailers-feel-pinch-mainlanders-travel-less-2070723 Jing Daily (2015). | Hong Kong and Macau Lose Luster for Luxury Retailers. [ONLINE] | Available at: http://jingdaily.com/hong-kong-and-macau-lose-luster-for-luxury-retailers/#.VlSTh9KFE6 Jing Daily (2015). | Should Luxury Retailers Give Up On Hong Kong?. [ONLINE] | Availability at: https://jingdaily.com/should-luxury-retailers-give-up-on-hong-kong/#.VlRcIt-KFE5 Launch (2012). | Decrease Symbol. [IMAGE] | Available at: http://launch3.squarespace.com/blog/facebooks-user-growth-continues-to-decrease-while-google-add.html Retail in Asia (2015). | Hong Kong Market. [ONLINE] | Available at: http://www.retailinasia.com/category/markets/hong-kong South China Morning Post (2015). | Weakening retail sales in Hong Kong and mainland China cast shadow over porperty stocks. [ONLINE] | Available at: http://www.scmp.com/ business/markets/article/1847926/weakening-retail-sales-hong-kong-and-china-casts-shadow-over The Economist Intelligence Unit (2015). | Consumer Goods. [ONLINE] | Available at: http://www.eiu.com/industry/consumer-goods/asia/hong-kong Worldpropertyjournal (2015). | Hong Kong Luxury Retail Market Hurt by Chinese Government Corruption Measures. [ONLINE] | Available at: http://www.worldpropertyjournal.com/realestate-news/hong-kong/hong-kong-retail-report-2015-chinese-government-anti-corruption-measures-hong-kong-luxury-retail-sales-data-cbre-joe-lin-slowing-china-gdp-china-stockmarket-crash-9365.php Page 10: AIA The Real Life Company (2015). | AIA 2015 Middle Class Survey. [ONLINE] | Available at: http://www.aia.com/en/resources/6f066d8048b3f39bb65efee679b3fec0/ AIA_Middle_Class_Survey_Press_Release_Eng.pdf

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Key Findings

BIBLIOGRAPHY Page 10: Boao Review (2013). | Chinese Hong Kong’s Middle Class. [ONLINE] | Available at: http://www.boaoreview.com/report-2012//2013/0106/128.html Census and Statistics Department (2015). | Labour Force. [ONLINE] | Available at: http://www.censtatd.gov.hk/hkstat/sub/sp200.jsp?productCode=D5250030 Deviant Art (N.D.). | Growth Symbol. [IMAGE] | Available at: http://zeezedzee.deviantart.com/art/Wall-e-Directive-T-Shirt-175809970 Friend in Fashion (2014). | Summer in Hong Kong. [IMAGE] | Available at: http://www.friendinfashion.com.au/2014/12/summer-in-hong-kong.html Page 11: Alexander McQueen (N.D.) | Store Locator. [ONLINE] | Available at: http://www.alexandermcqueen.com/experience/en/alexandermcqueen/store/ Burberry (N.D.). | Store Locator. [ONLINE] | Available at: https://uk.burberry.com/store-locator/hong-kong Business 2 Community (2014). | Burberry Logo. [IMAGE] | Available at: http://www.business2community.com/fashion-beauty/top-5-fashion-brands-using-social-media-keystrategy-0950789#!bjOeP9#M4h1lHx1rdF001yK.97 Butterboom (N.D.). | Stella McCartney Hong Kong Shops. [ONLINE] | Available at: http://butterboom.com/hk/stella-mccartney/ Dunhill (N.D.). | Store Locator. [ONLINE] | Available at: http://www.dunhill.com/en/store_categories/stores/#0 Fashion Week (N.D.). | Paul Smith Logo. [IMAGE] | Available at: http://fashionweek.com/paul-smith-watches-to-be-wholesaled-in-the-uk-in-august/paul-smith-logo/ Fragrantica (N.D.). | Stella McCartney Logo. [IMAGE] | Available at: http://www.fragrantica.com/designers/Stella-McCartney.html Jimmy Choo (N.D.). | Store Locator. [ONLINE] | Available at: http://www.jimmychoo.com/en/store-locator#country=HK&address=Hong%2BKong&format=ajax Kildare Village (N.D.). | Mulberry Logo. [IMAGE] | Available at: http://www.kildarevillage.com/en/brands/item/mulberry Logo Share (N.D.). | Jimmy Choo Logo. [IMAGE] | Available at: http://logo-share.blogspot.co.uk/2014/09/jimmy-choo-logo.html Logonoid (N.D.). | Dunhill Logo. [IMAGE] | Available at: http://logonoid.com/dunhill-logo/ Millionaire Match (N.D.). | Top 30 Luxury Fashion Brands. [ONLINE] | Available at: http://www.millionairematch.com/luxury/the-luxury-fashion-brands-list/ Mulberry (N.D.). | Store Locator. [ONLINE] | Available at: http://www.mulberry.com/stores-list Paul Smith (N.D.). | Store Locator. [ONLINE] | Available at: http://www.paulsmith.co.uk/uk-en/shop-locator/hk/all Polyvore (N.D.). | Alexander McQueen Logo. [IMAGE] | Available at: http://www.polyvore.com/alexander_mcqueen/thing?id=95299657 The Luxury Channel (N.D.). | Best of British Luxury Brands. [ONLINE] | Available at: http://theluxurychannel.com/programmes/britains-luxury-brands/ UX Repo (N.D.). | Android Store Vector Icon. [IMAGE] | Available at: http://uxrepo.com/icon/android-store-by-google-material Visit London (N.D.). | Shop for Top British Design in London. [ONLINE] | Available at: http://www.visitlondon.com/things-to-do/shopping/clothes/british-designers Vivienne Westwood (N.D.). | Vivienne Westwood Logo and Store Locator. [IMAGE & ONLINE] | Available at: http://www.viviennewestwood.com/store-locator Wikipedia (2015). | Flag of the United Kingdom [IMAGE]. | Available at: https://en.wikipedia.org/wiki/Flag_of_the_United_Kingdom

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Key Highlights

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The Market

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The Consumer

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Strategies of Luxury Players

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Market Opportunities

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Key Findings

BIBLIOGRAPHY Page 12: Bilderreich (N.D.). | Hong Kong Photos. [IMAGE] | Available at: http://www.bilderreich.de/fotografie/fotos/laender-reisen/hongkong-1144.html Business of Fashion (2014). | 6 Emerging Fashion Brands Worth Investing In. [ONLINE] | Available at: http://www.businessoffashion.com/articles/intelligence/6-emerging-fashionbrands-worth-investing ELLE (N.D.). | Die Printbewusste Mary Katrantzou. [IMAGE] | Available at: http://www.elle.de/mary-katrantzou-74957.html Fashionunited (2015). | Is Hong Kong losing its lust for luxury?. [ONLINE] | Available at: https://fashionunited.uk/news/retail/is-hong-kong-losing-its-lust-for-luxury/2015090317548 I.T (N.D.). | Simone Rocha Logo. [IMAGE] | Available at: https://www.ithk.com/eng/html/brands/SIMONE_ROCHA Le Mill (2014). | Peter Pilotto Logo. [IMAGE] | Available at: http://blog.lemillindia.com/our-pre-fall-picks-%E2%80%A2-wang-pilotto-3-1-saloni/ Pixabay (N.D.). | Magnifying Glass Symbol. [IMAGE] | Available at: https://pixabay.com/de/lupe-lupen-glas-vergr%C3%B6%C3%9Fern-160478/ Twitter (N.D.). | Erdem Logo. [IMAGE] | Available at: https://twitter.com/erdem Page 13-14: EcoChic Design Award (2013). | EcoChic Design Award. [IMAGE & ONLINE] | Available at: http://www.ecochicdesignaward.com/ EcoChic Design Award (N.D.). | Grand Final Fashion Show. [IMAGE] | Available: http://www.ecochicdesignaward.com/wp-content/blogs.dir/3/files/grand-final-fashion-show_1/ kevin_uk_2.jpg Institute for Sustainability (N.D.). | AIChE’s Sustainable Meeting Initiative. [IMAGE] | Available at: http://www.aiche.org/ifs/resources/sustainable-meeting-initiative Redress (N.D.). | The Ecochic Design Award. [ONLINE] | Available at: http://redress.com.hk/the-ecochic-design-award/ Redress (2014). | Research Summary. [ONLINE] | Available at: http://redress.com.hk/wp-content/uploads/2014/03/EDA-2013-Designer-Survey-Summary_27March_ENG.pdf Remote Management and Control (2014). | Sustainability. [IMAGE] | Available at: http://www.iassys.com/about-us/events/ Page 15-17: A1 Luxury Limousine (2015). | Black Hummer Limousine. [IMAGE] | Available at:http://www.a1limobus.com/black-hummer-limo.html Benetti Yachts (2015). | Classic Supreme132’. [IMAGE] | Available at: http://www.benettiyachts.it/modelli/class Clker.com (2010). | Shopping Cart Clip Art. [IMAGE] | Available at: http://www.clker.com/clipart-shopping-cart.html Depositphotos (2015). | Searcher. [IMAGE] | Available at: http://de.depositphotos.com/57780915/stock-photo-young-woman-shopping-online-with.html

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BIBLIOGRAPHY Page 15-17: Fashion Editor At Large (2013). | Introducing… China’s New First Lady Peng Liyuan. [IMAGE] | Available at: http://www.fashioneditoratlarge.com/2013/03/introducing-chinas-new-firstlady-peng-liyuan/ Flyerzone (2013). | Champagner. [IMAGE] | Available at:http://www.flyerzone.co.uk/blog/get-business-off-to-a-great-start-in-2013-with-flyerzone/ The Guardian (2014). | Record world debt could trigger new financial crisis, Geneva report warns. [IMAGE] | Available at: http://www.theguardian.com/business/2014/sep/29/recordworld-debt-financial-crisis-eurozone-geneva-report Iber China (2015). | Luxury Market in China. [ONLINE] | Available at: http://www.iberchina.org/files/Luxury_market_China2015.pdf Jing Daily (2015). | China Takes Aim At Lost Luxury Sales With Duty-Free Development. [IMAGE] | Available at: http://jingdaily.com/china-takes-aim-at-lost-luxury-sales-with-duty-freedevelopment/ Maplestage (2012). | “Aristocrats”-Consumer. [IMAGE] | Available at: http://maplestage.com/news/4604/ Rich Kids Of Instagram Tumblr (2012). | Playpen Shopper. [IMAGE] | Available at: http://richkidsofinstagram.tumblr.com/tagged/cars/page/2 Sportscars (2013). | World No1 luxury Car Lamborghini Aventador Gold. [IMAGE] | Available at: http://www.sportscars20.com/world-no1-luxury-car-lamborghini-aventador-gold/ WGSN (2013). | China’s Luxury Consumer: The next phase. [ONLINE] | Available at: http://www.wgsn.com.ucreative.idm.oclc.org/content/board_viewer/#/129612/page/1 When on Earth (2015). | The Stunning Sites on Chinese Yuan Banknotes You Can Visit. [IMAGE] | Available at: http://whenonearth.net/the-stunning-sites-on-chinese-yuan-banknotesyou-can-visit/ WWD (2011). | Louis Vuitton Bag. [IMAGE] | Available at: http://wwd.com/fashion-news/fashion-scoops/lvs-guy-stuff-shouting-loud-forever-edun-3432078/?src=rss/fashion/20110119 Page 18: Euromonitor (2015). | Luxury Goods in Hong Kong, China. [ONLINE] | Available at: http://www.euromonitor.com/luxury-goods-in-hong-kong-china/report HKTDC Research (2015). | Clothing Industry in Hong Kong. [ONLINE] | Available at: http://hong-kong-economy-research.hktdc.com/business-news/article/Hong-Kong-Industry-Profiles/ Clothing-Industry-in-Hong-Kong/hkip/en/1/1X000000/1X003DCL.htm Louis Vuitton (2012). | Louis Vuitton Logo. [IMAGE] | Available at: https://louisvuittonnews.wordpress.com/tag/louis-vuitton-bags/ Marketing China (2015). | What Chinese consumers (really) want. [ONLINE] | Available at: http://marketingtochina.com/chinese-consumers-want/ Marketing China (2013). | Luxury Consumer. [IMAGE] | Available at: http://marketingtochina.com/renovation-of-la-samaritaine-in-paris-to-attract-chinese-tourists/ Reportlinker (2015). | Luxury Accessories in Hong Kong, China. [ONLINE] | Available at: http://www.reportlinker.com/p02869485-summary/Luxury-Accessories-in-Hong-KongChina.html

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BIBLIOGRAPHY Page 19: Free Vector (2014). | Woman Symbol. [IMAGE] | Available at: http://www.freevector.com/man-and-woman-symbols-graphics/ Institute for Sustainability (N.D.). | AIChE’s Sustainable Meeting Initiative. [IMAGE] | Available at: http://www.aiche.org/ifs/resources/sustainable-meeting-initiative Lea Tumczyk (2015). | Sustainability in Hong Kong when it comes to Luxury. [SURVEY] Martina Spetlova (2015). | Fashion Collection. [IMAGE] | Available at: http//www.martinaspetlova.com Page 20: Baroque Lifestyle (2015). | First Giorgio Armani store in Africa. [IMAGE] | Available at: http://www.baroquelifestyle.com/fashion-women/2015/6/22/first-emperio-armani-store-in-africa Discount Designer Bags (2013). | Exclusive – Luxury Department Store in Berlin. [IMAGE] | Available at: http://www.pbag.info/exclusive-luxury-department-store-in-berlin/ Fung Business Intelligence Centre (2013). | Luxury market in China. [REPORT] | Available at: http://www.funggroup.com/eng/knowledge/research/china_dis_issue109.pdf UX Repo (N.D.). | Android Store Vector Icon. [IMAGE] | Available at: http://uxrepo.com/icon/android-store-by-google-material Page 21: All Logos (N.D.). | Armani Logo. [IMAGE] | Available at: http://alllogos7.blogspot.co.uk/2013/02/armani-logo.html Dipple & Conway (N.D.). | Dior, Gucci, Giorgio Armani Logo. [IMAGE] | Available at: http://www.dippleconway.co.uk/brands/ Fung Business Intelligence Centre (2013). | Luxury market in China. [REPORT] | Available at: http://www.funggroup.com/eng/knowledge/research/china_dis_issue109.pdf Good Logo (N.D.). | Salvatore Ferragamo. [IMAGE] | Available at: http://goodlogo.com/extended.info/salvatore-ferragamo-logo-3657 Link Humans (N.D.). | Burberry Logo. [IMAGE] | Available at: http://linkhumans.com/case-study/burberry Logok (N.D.). | Fendi Logo. [IMAGE] | Available at: http://logok.org/fendi-logo/ Louis Vuitton (2012). | Louis Vuitton Logo. [IMAGE] | Available at: https://louisvuittonnews.wordpress.com/tag/louis-vuitton-bags/ Pinterest (2015). | Hermes Logo. [IMAGE] | Available at: https://www.pinterest.com/pin/353603008218871368/ UX Repo (N.D.). | Weibo Vector Icon. [IMAGE] | Available at: http://uxrepo.com/icon/weibo-by-zocial Wikia (N.D.). | Versace Logo. [IMAGE] | Available at: http://demons.wikia.com/wiki/File:VERSACE_Logo.jpg Wikipedia (2012). | Chanel Logo. [IMAGE] | Available at: https://en.wikipedia.org/wiki/File:Chanel_logo_interlocking_cs.svg

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BIBLIOGRAPHY Page 22: Clker.com (2010). | Shopping Cart Clip Art. [IMAGE] | Available at: http://www.clker.com/clipart-shopping-cart.html Fung Business Intelligence Centre (2013). | Luxury market in China. [REPORT] | Available at: http://www.funggroup.com/eng/knowledge/research/china_dis_issue109.pdf Watchalyzer (2013). | Piaget Altiplano Chinese Zodiac Snake Watch. [IMAGE] | Available at: http://www.watchalyzer.com/magazine/news-events/piaget-altiplano-chinese-zodiac-snakewatch/ Page 23: All-Free-Download.com (N.D.). | Speech Bubble. [IMAGE] | Available at: http://de.all-free-download.com/frei-vektoren/vektoren-clip-art/cartoon_sprechblase_117738.html Clker.com (2011). | Stick Figure Image. [IMAGE] | Available at: http://www.clker.com/clipart-95003.html Invest Hong Kong (2014). | Hong Kong for Business. [ONLINE] | Available at: http://de.slideshare.net/SCOTTMAI1/hong-kong-for-business Wikipedia (2015). | Cantonese. [IMAGE] | Available at: https://en.wikipedia.org/wiki/Cantonese Page 24: Aircargonews (2015). | Support grows for Hong Kong’s self-funded third runway. [IMAGE] | Available at: http://www.aircargonews.net/news/single-view/news/support-grows-for-hongkongs-self-funded-third-runway.html Find Icons (N.D.). | Airplane Symbol. [IMAGE] | Available at: http://findicons.com/icon/557492/airplane_takeoff HKTB Insiht & Research (2014). | Total Visitor Arrival by Country. [ONLINE] | Available at: http://partnernet.hktb.com/filemanager/intranet/ViS_Stat/ViS_Stat_E/ViS_E_2014/ Tourism_Stat_12_2014_0.pdf Invest Hong Kong (2014). | Hong Kong for Business. [ONLINE] | Available at: http://de.slideshare.net/SCOTTMAI1/hong-kong-for-business Page 25: HKTC Research (2015). | Tax. [ONLINE] | Available at: http://china-trade-research.hktdc.com/business-news/subindex/en/Guide-to-Doing-Business-in-China/1X3B64K4/1/0.htm Icons (N.D.). | Currency Symbol. [IMAGE] | Available at: https://icons8.com/2013/10/18/cad-hkd-sek-currency-sign/ Invest Hong Kong (2014). | Hong Kong for Business. [ONLINE] | Available at: http://de.slideshare.net/SCOTTMAI1/hong-kong-for-business South China Morning Post (2015). | Why Hong Kong still needs to peg its currency to US dollar. [IMAGE] | Available at: http://www.scmp.com/business/banking-finance/article/ 1856273/why-hong-kong-still-needs-peg-its-currency-us-dollar

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BIBLIOGRAPHY Page 26: Clker.com (2010). | Shopping Cart Clip Art. [IMAGE] | Available at: http://www.clker.com/clipart-shopping-cart.html Guide Me Hong Kong (2010). | Hong Kong, 2nd in ‘Easeof Doing Buisness’ survey. [IMAGE] | Available at: http://www.guidemehongkong.com/story/doing-business/hong-kong-2nd-inease-of-doing-business-survey Invest Hong Kong (2014). | Hong Kong for Business. [ONLINE] | Available at: http://de.slideshare.net/SCOTTMAI1/hong-kong-for-business Just Style (2012). | Hong Kong’s changing role in the apparel industry. [ONLINE] | Available at: http://www.just-style.com/analysis/hong-kongs-changing-role-in-the-apparelindustry_id113156.aspx Page 27: 123rf (N.D.). | Mannequin Icon. [IMAGE] | Available at: http://www.123rf.com/clipart-vector/mannequin_icon.html?mediapopup=40441511 Luxury Daily (2014). | Hong Kong consumers spend 4x more on apparel than US counterparts: report. [ONLINE] | Available at: http://www.luxurydaily.com/ecommerce-trends-in-hongkong-report/ Trendhunter Fashion (2009). | Graduate Fashion Show in Hong Kong. [IMAGE] | Available at: http://www.trendhunter.com/trends/china-graduate-fashion-show-hong-kong Page 28: Future Timeline (N.D.). | One Country, Two Systems. [IMAGE] | Available at: http://www.futuretimeline.net/21stcentury/2047.htm#.VlR7sd-KFE5 Invest Hong Kong (2014). | Hong Kong for Business. [ONLINE] | Available at: http://de.slideshare.net/SCOTTMAI1/hong-kong-for-business Wikimedia Commons (2015). | Hong Kong Flag. [IMAGE] | Available at: https://commons.wikimedia.org/wiki/File:Flag_of_Hong_Kong.svg Worldatlas (N.D.). | China Map. [IMAGE] | Available at: http://www.worldatlas.com/webimage/countrys/asia/outline/cnout.htm Page 29: 123rf (N.D.). | Mannequin Icon. [IMAGE] | Available at: http://www.123rf.com/clipart-vector/mannequin_icon.html?mediapopup=40441511 Clker.com (2010). | Shopping Cart Clip Art. [IMAGE] | Available at: http://www.clker.com/clipart-shopping-cart.html Deviant Art (N.D.). | Growth Symbol. [IMAGE] | Available at: http://zeezedzee.deviantart.com/art/Wall-e-Directive-T-Shirt-175809970 Find Icons (N.D.). | Airplane Symbol. [IMAGE] | Available at: http://findicons.com/icon/557492/airplane_takeoff Icons (N.D.). | Currency Symbol. [IMAGE] | Available at: https://icons8.com/2013/10/18/cad-hkd-sek-currency-sign/ Pixabay (N.D.). | Magnifying Glass Symbol. [IMAGE] | Available at: https://pixabay.com/de/lupe-lupen-glas-vergr%C3%B6%C3%9Fern-160478/ Wikimedia Commons (2015). | Hong Kong Flag. [IMAGE] | Available at: https://commons.wikimedia.org/wiki/File:Flag_of_Hong_Kong.svg Worldatlas (N.D.). | Europe Map. [IMAGE] | Available at: http://www.worldatlas.com/webimage/countrys/europe/euoutl.htm

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BIBLIOGRAPHY Page 39: Impact Value Exchange (N.D.). | Hong Kong. [IMAGE] | Available at: https://impactvalueexchange.wordpress.com/

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