As per PwC, Hong Kong retail sector is poised to grow at an annual growth rate of 8 per cent to reach HK$484 billion (US$61.7 billion) this year and surpass its 2013 peak of HK$494 billion (US$63 billion) by 2020. Total retail sales for the first four months of 2018 surged by 14 per cent, with all sectors recording positive growth.
Luxury goods, especially jewelry and watches, along with consumer durable products remain the best-performing areas propelling further recovery this year and onwards. In addition, changing consumer behaviors and preferences have led to the rise of new shopping experiences and e-commerce in Hong Kong.
The upward trend in electronic payment is promoting a wider adoption of mobile retail payments However, challenges including the Sino-US trade dispute, strong US dollar against Renminbi, a global interest rate hike, and the imminent end of QE in Europe and Japan is likely to impact consumption.
