Luxury Brands Are No Longer Valuable In Hongkong.

Bain's 2012 luxury market report shows mainland China's

The annual growth rate dropped to around 7%.

Under the combined effect of the two factors, the continued decline of the euro and the warming of overseas travel, Chinese consumers have accounted for 60% of the total consumption of luxury goods overseas.

Although Chinese consumption growth in Macao is still strong, the growth rate in Hongkong has slowed to 10%.

China's luxury market, which has been growing rapidly for many years, first appeared -1% negative growth for the first time in 2014 due to the slowdown in economic growth, the role of corruption and so on.

Bain survey shows that more and more Chinese consumers choose to travel to Japan and South Korea for shopping.

As of April last year, the value of sales of jewellery, clocks and gifts in Hongkong declined by 39.9% compared with the same period last year.

Hongkong, China - a year ago, the owners of Russell Street in Hongkong could make the world's tallest.

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But now they need to adapt to the new reality.

As the luxury brand strategy shrinks to cope with sharp sales, Burberry Group Plc, Kering SA, and jewellery retailer Chow Tai Fook Group (Chow Tai Fook Jewellery Group Ltd.) are urging owners to rent down existing properties.

The TAG Heuer closed its shop on Russell street last week due to high rent and falling traffic.

Helen Mak, senior vice director of research and research at Colliers International, said: the retail sales of luxury goods have been plummeted due to the slowdown in China's economy and the anti-corruption campaign launched by President Xi Jinping. This makes Hongkong's first place in the world in November last year in New York, New York, and faces the biggest rent decline since 2009.

In addition, the current situation is fueled by the weakness of the yen and the euro, which makes Chinese tourists more likely to go to Japan or France rather than Hongkong.

"Rents will inevitably decline," said Marcos Chan, research director of CBRE Group Inc. in Hongkong, Macao and Taiwan. "We can't see any signs of a rapid rebound in retail sales."

According to data from Hong Kong Retail Management Association, sales of jewellery, watches and expensive gifts fell by 15.9% at the end of June.

In a research report of Jones Lang LaSalle Inc. in July, it expected that the rent of high street will drop by 15% to 20% this year.

This is a more negative situation than the 5% decline expected by the company last year.

The street owners in central Hongkong and the Harbour City area in Kowloon are heavily dependent on mainland Chinese consumers, who are now in deep pain.

The average rent in Tsim Sha Tsui dropped by 15% in the first half of the year, Gao Li International said.

Ming Bao reported that Zhou Dafu's recent renewal of Nathan road's Mong Kok bank central store has an agreement amounting to HK $800 thousand, a 39% reduction compared with the previous one.

A spokesman for Zhou Dafu declined to comment on the paction, saying only that "the rent reduction of tenants varies from place to place."

Zhou Shengsheng, a jewellery and watch chain, has closed 2 stores in the past 9 months and has won a little rent discount for its 54 outlets.

Russell street is only one block.

Important retail centers, written by pen maker MontBlanc (Montblanc), watchmaker Omega, and jeweler SWAROVSKI (Swarovski) are next to each other.

The average rent in the lot has dropped by 10.4% in the first half of this year, Gao Li International said.

Kering SA, the parent company of Gucci (Gucci), has warned that if the rental costs are not coming down, several shops in Hongkong will be closed.

"Many owners do not necessarily understand that the market has changed," said Jean-Marc Duplaix Duplaix, chief financial officer of Kai Yun group, in a telephone conference with analysts in July.