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Comment on the Retail Industry in Hong Kong

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Submitted By batman7570
Words 701
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How do you comment on the retail industry in Hong Kong, and how do you see yourself in playing a part in contributing into this sector?*

EXECUTIVE SUMMARY
Economic performance stands still in 2014
The Hong Kong retail business saw a stagnant performance in 2014 compared to that of 2013. This may be attributed to several internal and external factors which had an impact on economic conditions. The continual effect of anticorruption policy laws in China and its policy on shopping tours to Hong Kong is tightening the spending propensity of Chinese tourists, who are one of the key source markets driving retail growth. In addition, domestic spending softened in 2014 adding to the slow performance of retailing.
Expansion plans are put on hold by most retailers
Hong Kong retailing rental prices have continued to soar, coupled with demand for shop fronts in prime locations by both luxury and international players. The majority of retailers have held back their expansion plans to avoid incurring hefty costs. They are counteracting this situation by exploring online channels and mobile platforms, and revamping existing outlets combined with creative and loud marketing activities in stores. Retailers have also spotted the potential opportunities of allocating their resources to New Territories districts instead.
Upscale grocery shopping versus mass non-grocery shopping
Consumers gaining sophistication and westernised lifestyle habits has led to a shift towards increased visits to and outlet expansion of high-end supermarkets such as MarketPlace by jason’s, InterNational and Fusion.
Consumers are seeking the premium, healthy, gourmet food available in these grocery outlets. On the other hand, consumers are shifting towards mass, also known as affordable, non-grocery brands. Fast fashion brands such as H&M and affordable luxury products are gaining popularity in view of

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