Hong Kong Sees Further Growth in Hard Luxury

RAPAPORT... Hong Kong's retail sales of jewelry and other hard-luxury products increased for the fifth consecutive month as the coronavirus situation eased.Revenue from jewelry, watches, clocks and valuable gifts rose 4.3% year on year to HKD 3.3 billion ($420.1 million) in August, the municipality's Census and Statistics Department reported Friday.Sales across all retail categories slipped 0.1% to HKD 28.57 billion ($3.64 billion). An unfavorable comparison with a strong August in 2021 - when the government introduced spending vouchers for consumers - offset the robust sentiment visible this year.Hong Kong's "moderating" Covid-19 situation, an improving labor market and the latest phase of consumption vouchers will continue to support shopper sentiment in the short term, a government spokesperson predicted. In late September, the territory abolished the strict quarantine rules that had been keeping away tourists - an important source of revenue for the local luxury market.Still, "increasingly tight financial conditions will pose constraints" for retail, the spokesperson cautioned.For the first eight months of 2022, sales of jewelry, watches, clocks and valuable gifts declined 0.8% year on year to HKD 24.89 billion ($3.17 billion). Revenue from all product types dropped 1.5% to HKD 226.73 billion ($28.88 billion).Image: The Hong Kong skyline. (Shutterstock)