China’s ongoing anti-graft campaign has dampened retail sales of jewelry and other luxury goods in Hong Kong during the Lunar New Year holidays, the Hong Kong Economic Journal reported.
Overall sales in the market may have dropped 20 percent on average compared to the same holiday period last year, some retailers were quoted as saying.
Chow Tai Fook Jewellery Group Ltd. (01929.hK) said its same-store sales in Hong Kong, Macau and other markets tumbled 30 percent year-on-year in the period from two weeks prior to the Chinese New Year through the fourth day into the Lunar New Year.
Aggregate sales in those markets during the same period were down 24 percent, it said.
Rival Chow Sang Sang Holdings International Ltd. (00116.HK) has also seen 10 to 12 percent fall in sales in Hong Kong for the first five days into the Chinese New Year, according to the report.
Sales in Macau, meanwhile, dropped 15 percent amid fewer number of mainland visitors.
Andy Kwan Cheuk-chiu, director of the ACE Centre for Business and Economic Research, said the consumption behavior of mainland visitors has changed due to continuing anti-corruption fight of the central government.
Many mainland tourists have switched to buying mid-market products, causing sales of luxury goods to fall since March last year, hurting the jewelry sector.
As high-end product sales suffered, other items such as cosmetics and electronic gear saw increased demand, Kwan said.
Translation by Vey Wong
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