Given the tense political climate, brands are wary of proceeding with their expansion plans. There has been a drop in tourist traffic between 30 and 50 per cent. Hugo Boss, Levi Strauss and Ralph Lauren have already closed some of their stores and are considering closing more. Chanel has postponed its cruise collection 2019-2020 fashion show.

Historically, Hong Kong has been one of the key markets for luxury goods. It represents approximately five per cent sales with a higher-than-average profitability for luxury groups. Now, political uncertainty has started to impact retailers and luxury holdings in the special administrative region. Sales of the retailer L’Occitane declined 19 per cent in the second quarter of this year.

However, other companies still see Hong Kong as a potential market, even now. They feel it gives them the opportunity to amplify global beauty trends locally, elevate the in-store retail experience and to bring in digital touch points within the brick-and-mortar format to create a virtuous customer centric cycle. Tiffany’s has ten stores in Hong Kong and plans the opening of a new flagship. Sephora, Stuart Weitzman, Fortnum & Mason and Moda Operandi are some of the other companies with new planned openings in the region.