HK’s Retail sector, August 2015
The US luxury brand “Coach” is pulling out its flagship store in Central, this pull our would save them a monthly expense of HK$7.2M on rent plus salaries and other what nots!!
Monthly rent of HK$ 7millions !! WOW !!! It’s good to be a landlord in HK !!
The pulling out of the flagship store is a clear sign the luxury sector is going downhill, and we are second guessing the high rollers are not milking profits in the financial market, or worse, they are losing money ! Whatever it is, we feel the economy is heading south, and it will eventually affect all walks of life.
Are we to continue designing camera straps knowing the economy is looking gloomy? Yes, definitely ! But not in a sense of diversifying production lines and increasing the inventory. The production will continue with the existing designs, but experimenting with new concepts may intentionally be delayed. We’d like to think of it as “Winter is coming”, and keeping a tight cap over the stock level is our way of switching into a survival mode !
Increasing the marketing effort may be a way to offset the apocalyptic economy. What is marketing? specifically what is marketing for the SMEs with a tight budget? We don’t know, but we want to add a little humour in everything we do ! We should all smile and laugh each and every day.