Hong Kong is home to the largest number of billionaires in the world with over 8.8% of it’s 7.2 million populationmillionaire households according to Boston Consulting group. Combined with it’s popularity as an off shore centre of wealth and popularity with tourists, ( over 40 million high spending visitors per annum) it’s easy to see why the retail landscape is dominated by luxury brands.
The current Nick Knight campaign for Lane Crawford aligned perfectly in store
From Hermes to Isabel Marant to luxury department stores Lane Crawford and Harvey Nichols, you would be hard pressed to find a western premium brand that does not have a presence in this former British colony. Whilst this breeds a positive consumer culture of aspiration, in reality there is little shopping choice for the millions of average pay office workers and expats whose spending power, makes up on mass, a considerable opportunity for western mid-tier retailers.
This gap that was identified by Zara back in 2005 and has steadily been filled by H&M, Forever 21, Abercrombie & Fitch (see me looking awkward above) and soon Topshop yet there is a growing demand for affordable fashion and a real opportunity for hip, alternative stores such as Urban Outfitters and dare I say it independents to thrive in this market. Indie surf and skate brands enjoy a strong sales presence whilst outlet malls are springing up all over the outskirts of the city and over 4 vintage shops ( see Select 18 below) have opened in the past 2 years- its an exciting time for smaller brands to enter the market.
My opinion on this open door was bolstered further after a visit to Hong Kong local shopping haven Causeway Bay where I spent much of my teenage years seeking out the secret mini shopping malls. Entered through non-descript doors with staircases leading up to 5 stories packed full of local designers and Korean brands occupying no more than 3 square meters each. Bursting with fashion under £10, when I returned to Hong Kong last week I was impressed by the growth of these malls. Not only are there now more of them, but the little shops have upped their game with sleek visual merchandising and branding that have transformed them from a small space full of clothes to uber-mini uber cool boutiques. Whilst these malls remain largely undiscovered by the expat community and tourists, the local 16-24 year olds acceptance of lesser known and local brands is an incredibly compelling and encouraging sign for indie boutique owners and up coming British brands.
Im eyeing up a popup space in Hong Kong now, as well as speaking to the country’s first fashion e-commerce site ( another huge opportunity) all with a quote from Chinese military general, strategist and philosopher Sun Tzu in my mind- ‘opportunites multiply as they are seized.’
