 |
|
|
Seasonal discounts from early November helped raise Christmas retail sales in the US
|
|
Global sales results over the Christmas holiday season were weaker than they were last year, with emerging markets generally outperforming traditional markets. According to findings from the global network of the Hong Kong Trade Development Council (HKTDC), better sales results were recorded only in the United States and Germany. Sales were disappointing in Japan, the United Kingdom, France and, in particular, Italy.
Christmas sales in Hong Kong's major overseas markets are generally regarded as a major indicator of Hong Kong's export prospects for the year ahead. "A cautious mood prevailed among traditional markets, especially the European Union countries most affected by the sovereign debt crisis," said HKTDC Assistant Chief Economist Daniel Poon. "EU consumers were inclined to consider this holiday season as their last occasion to shop before austerity measures take effect."
To compensate for the sluggish business in traditional markets, Mr Poon advised Hong Kong exporters to hunt for new opportunities in such emerging markets as Poland, Russia, Brazil and Chile. He saw even more opportunity on the Chinese mainland, where the government is promoting domestic consumption and urban development.
Early Sales Promotions
US retail sales grew by 3.5 per cent this holiday season over the same period last year, which had risen 5.2 per cent thanks to aggressive promotions and good weather conditions. Consumer sentiment, however, remained cautious, given continuing concerns about job security, heavy debt burdens and depressed home values.
Most Christmas shoppers took the time to organise their shopping in advance to keep spending within their budget. For their part, retailers started offering seasonal discounts from early November. They also made use of social networks to push promotions and cultivate shopper communities.
Mass merchandisers and discounters again did buoyant year-end business at the expense of mid-market retailers. High-end stores also showed gains amid robust sales of luxury items. Smartphones and tablets topped the shopping list, with flat-panel TVs and digital cameras also among the hot sellers.
Non-digital games based on Internet and smartphone characters such as Angry Birds led a "reverse-tech" trend. Classic toys such as Barbie, Elmo and Lego also sold well.
Belt-Tightening in Europe
| |
 |
| |
UK sales were expected to remain flat or, at best, edge up one per cent, with sales of jewellery and high-end watches weak
(photo: EyePress)
|
While the continuing sovereign debt crisis, coupled with rising unemployment, cast a shadow over the region, Christmas sales results varied considerably from country to country in western European markets. Most consumers were conservative, sticking to their budgets and hunting for practical products.
Germany's retail climate was reasonably positive, thanks to an improving labour market and growing incomes. Given the euro jitters, however, overall sales are estimated to have risen only 1.5 per cent over last year, when a three per cent increase was recorded.
Electronic gadgets, notably smartphones, tablet computers and flat-panel TVs, were favoured presents, while new technology gadgets also sold well. As for jewellery and timepieces, both higher-end and lower-priced items were well-received.
In France, Christmas sales were stagnant despite extensive discounts and promotions. It was even worse in Italy, which has been badly affected by the debt crisis. A series of belt-tightening fiscal measures clearly dampened the year-end atmosphere, with a double-digit decline in Christmas sales over 2010 results.
In the United Kingdom, sales were expected to remain flat or, at best, edge up one per cent. Consumer electronics sales stood out, while sales of jewellery and high-end watches were weak.
Despite an economic rebound in the months following the devastating March earthquake and tsunami, year-end sales in Japan were estimated to have fallen mildly.
Holiday shoppers generally opted for basic year-end gifts, once again favouring discount stores over department stores. Most products, including consumer electronics, timepieces and jewellery, did not fare well.
Yuletide Fever
 |
|
|
Despite the tight monetary policy and continuing adjustments in the property market, Chinese mainland consumers continued to spend, including in Hong Kong
|
|
On the Chinese mainland, despite the tight monetary policy and continuing adjustments in the property market, consumption remained positive. Retail sales during the first 11 months of 2011 were up 17 per cent, year-on-year. Retail sales soared 17.3 per cent in November alone.
Christmas has begun to catch on in urban areas and, increasingly, in rural cities, with more and more mainland retailers featuring Yuletide decorations and related promotions.
Feedback from the HKTDC's mainland network shows that most consumer products enjoyed strong retail sales. Many mainland consumers visited Hong Kong for holiday shopping.
Other Emerging Markets
Influenced by the Eurozone's debt crisis, Central and Eastern European consumers were cautious. Sales were lacklustre in both Hungary, given its fragile financial state, and the Czech Republic, because of its heavy reliance on exports to the EU. Year-end sales were stronger in Poland and Russia.
As for Latin America, Christmas sales were bullish in Brazil, though slightly less so than over the same period last year. Chile, Argentina and Mexico were among other Latin American countries to record resilient sales over the holiday season.
For details of the 2011 Christmas sales, please see the HKTDC report "The Promise of Christmas 2011 in Major Markets," which can be ordered at: http://bookshop.hktdc.com/.
