Park forecasts uncertainty in Hong Kong’s luxury future
Political unrest in Hong Kong has restarted over China’s new security law, marking almost a year of disruption. The protests will likely continue, says Albert Park, head of the department of economics at the Hong Kong University of Science and Technology. The approval of the security law might lead to another six to eight months of protests. If Park’s forecast materialises, companies that might have thought the disruption was temporary in 2019 could be pushed to make more drastic decisions. “As soon as [businesses] start to think this might be long-term, that's when you really get people starting to relocate and close shops,” Park says. Many luxury brands have already permanently closed retail outposts in the city while others are re-evaluating their presence. With new tensions flaring up, tourism, which is the biggest driver of sales in Hong Kong, is not likely to recover any time soon, brands are cautiously looking at the future of their long-term footprint.
Read the news article published on 8 June 2020 on Vogue Business.
