Xin Ou
Research expert covering Greater China
Luxury goods market in Hong Kong - statistics & facts
Hong Kong, known as the “Pearl of the Orient”, has been serving as a luxury hub for Asia. In 2023, it recorded the highest per capita spending on luxury goods in the world and ranked third in the Asia-Pacific region in terms of revenue in the luxury goods market. It also took second place on the list of ten best cities in the world for luxury shopping thanks to its large number of designer stores. Moreover, the metropolis was the world's third-largest diamond importing region, where the jewelry giant Chow Tai Fook has its base.
Consumer base
Thanks to its strategic location, Hong Kong is not only home to the largest number of ultra-high net worth (UHNW) individuals in the world, but also a global transit hub and popular tourist destination. Tourists, particularly visitors from mainland China, have driven the demand for luxury goods in Hong Kong. However, with the popularity of cross-border e-commerce and the emergence of Hainan as a duty-free luxury hub, many luxury consumers have turned to other alternatives to buy luxury goods.Hong Kong’s cultural uniqueness
As China’s window to the world, Hong Kong has developed a vibrant lifestyle, a mature business model, and a unique culture blending ancient Chinese traditions and western influences. Several luxury brands, such as LV and Hermès, have recognized this as the key to winning back consumers from other competitive markets. They incorporated Hong Kong’s intriguing culture, art, entertainment, delicacy, or lifestyle into their marketing strategies, capturing tourists seeking unique and diverse experiences. Additionally, as luxury consumers in Hong Kong begin to buy luxury goods at an early age, a profound connection with future generations, especially Gen Z, will be critical for sustained revenue growth.Post-pandemic boost
In 2023, Hong Kong experienced a significant growth in total retail sales value, coinciding with a favorable adjustment in leasing conditions. In addition, the government proposed an optimized “multi-entry permits” policy and announced in its 2024 budget to allocate over one billion Hong Kong dollars to promote mega events and boost tourism. Since its reopening after the pandemic, the city has hosted several high-profile events, such as the Dior men’s pre-fall collection show. All this has evoked the confidence in the revival of Hong Kong’s luxury goods market, encouraging luxury brands to establish or expand their operations there.
