For Hong Kong, the bling has just begun, according to new research from HSBC.
“We are bullish on luxury prospects for Hong Kong,” said a report published in March by HSBC. “This may seem counter-intuitive, but we believe there is not enough luxury retail on offer in Hong Kong.” And with major infrastructure projects in the works, and the city’s attractive duty-free prices, Hong Kong will continue to be the go-to-destination for wealthy mainland shoppers, according to the report.
The expected influx translates into profits for brands. “We think Hong Kong will continue to grow into one of the most profitable luxury hubs on the planet, and this despite increasing rents.”