Luxury brands' window to China (hktdc.com)


	The new-look Gucci flagship store in The Landmark, Central, one of the great shopping districts of the world

	Paul Husband, author and retail consultant, says China's luxury market is growing with such gusto it will become Asia's biggest by 2014

	The new Asprey store in The Peninsula Hotel shopping arcade, "one of the most prestigious shopping locations in Asia"

Hong Kong is increasingly the place for international luxury brands to see and be seen.

The line-up of prestigious names positioning themselves in Asia's fashion capital reads like a who's who of style, with Hong Kong now boasting more stores per luxury brand than London, New York or Paris.

The city also has the largest stores of luxury brands outside Japan. In upmarket mega-malls across Central, the Hong Kong flagships of Giorgio Armani, Louis Vuitton, Chanel, Gucci, Dior and Prada all rank amongst the six largest in the world.

Luxury "in abundance" is attracting both brand names and shoppers alike to Hong Kong, says Paul Husband, Managing Director of Husband Retail Consulting Ltd.

"The city offers luxury in every type of setting, from the streetscape of Central - one of the great shopping districts of the world - to world-class hotels such as The Peninsula, and mega malls such as Harbour City and Pacific Place," Mr Husband said.

Cheaper here

"People love the huge number of brands they can find in Hong Kong, both established brands and new market entrants like Valextra from Milan, Asprey from London, Brioni from Italy and H&M from Sweden. Hong Kong's duty free approach means prices are competitive, unencumbered by duties and taxes. Brands stock more merchandise here, and build bigger stores to offer a more engaging customer experience. "

In addition to its ranking as one of the premier fashion capitals alongside Paris, New York, London, Milan and Tokyo, Hong Kong has the edge on service, Mr Husband said. "The new Yabu Pushelberg-designed Lane Crawford, recent arrival Harvey Nichols, the beautiful flagship stores of the world's leading brands, its many fashionable hotels (recently boosted by the new Landmark Oriental and Four Seasons) and its increasing array of international name restaurants including Spoon and soon to open Zuma and L'Atelier Robuchon all add up to make Hong Kong one of the fashion capitals of the world."

Hong Kong's retail prestige was also the reason Asprey - billed as "the ultimate authentic British lifestyle house" - opened a store last month in The Peninsula Hotel shopping arcade as part of the brand's international expansion. "We are very honoured that our point of sale number 18 is opening in one of the most prestigious shopping locations in Asia," said Gianluca Brozzetti, CEO of Asprey.

China showcase

Brands also use their Hong Kong presence as a showcase to China, where the number of rich people in China is rising fast. According to KPMG, in 1999 a "relatively low" US$6 million (HK$46.7 million) was needed to rank among Forbes Magazine's 50 richest people in China. In 2005, however, this has shot up to US$140 million (HK$1 billion) - to gain a place in the top 100. This year, reports estimate that China is home to around 300,000 US dollar millionaires.

A newly released KPMG report on luxury brands in the China shows that consumer demand for luxury is spreading.

"Interestingly, the appetite for luxury brands is not restricted to the more established cities such as Beijing, Shanghai and Guangzhou," said Mark Larson, KPMG's Global Head of Retail. "The survey findings show that brand awareness and desire for luxury brands in the second-tier cities is similar to the primary cities."

Paul Husband, author of new book The Cult of the Luxury Brand, says the "sheer number of visitors to Hong Kong" - mostly coming from the Chinese mainland - makes Hong Kong the ideal showcase for brands.

"With China now responsible for over 15 million visitors to Hong Kong annually, it is a true test market and marketing opportunity for luxury brands entering or expanding in the mainland."