Hong Kong Retail Sector Sees 7.3% Drop in November: 9th Consecutive Month of Decline
In a concerning trend, Hong Kong’s retail sector has experienced a significant decline for the ninth consecutive month, with a 7.3% drop in sales recorded in November compared to the same period the previous year. The Census and Statistics Department’s provisional estimates revealed that year-on-year sales fell to HK$31.7 billion, while retail sales by volume saw an 8.3% decrease in November compared to 2023.
Factors Contributing to the Decline
Changes in spending patterns of both visitors and residents, coupled with the relatively strong Hong Kong dollar, are cited as key factors that continue to impact the performance of the retail sector. The government highlighted the importance of measures like the resumption of multiple-entry visas for Shenzhen residents in stimulating spending within the local market.
The multiple-entry visa, which took effect on December 1, allows unlimited visits to Hong Kong for a year and has shown positive effects on retail sales, particularly in lower-priced items such as cosmetics, fast food, and clothing. However, concerns remain regarding the potential deterrence for visitors to purchase high-priced products due to the strong Hong Kong dollar.
Impact on Specific Industries
The decline in sales was particularly noticeable in various sectors, with motor vehicles and parts experiencing a significant 34.4% drop compared to November 2024. Furniture and fixtures followed with a 20.5% decrease, while Chinese drugs and herbs sales fell by 19.3%. Additionally, consumer electronics saw an 18% drop in sales value during the same period.
Box Office Woes
In a related development, Hong Kong’s box office receipts for 2024 saw a 6.2% decrease, marking a 13-year low for the city’s film industry. Despite successes like “The Last Dance” becoming Hong Kong’s highest-grossing film, overall box office earnings dropped from HK$1.43 billion in 2023 to HK$1.34 billion in 2024.
Tenky Tin, spokesperson for the Federation of Hong Kong Filmmakers, lamented the industry’s performance, attributing it to the timing of film premieres and the closure of nine cinemas last year. Despite challenges, the industry saw a milestone in outperforming Hollywood for the first time since 2004.
In conclusion, the continued decline in Hong Kong’s retail sector and box office receipts underscore the challenges faced by these industries. As stakeholders navigate the impact of changing consumer behaviors and economic conditions, innovative strategies and government support will be crucial in revitalizing these sectors for sustained growth and success.
