This year, Hermès is betting big on Hong Kong.
The French brand is taking up more space in one of the city’s most luxurious malls, Bloomberg reported on Friday. The move is a sign that Hermès thinks wealthy Hong Kongers will help boost its business in 2024, as the luxury market in China takes a dip. (Not that it needs much help, considering it’s one of the most valuable luxury brands in the world, with Bernard Arnault’s LVMH taking the top spot.)
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At Lee Gardens in Causeway Bay, Hermès is renovating its three-floor store, which is expected to reopen sometime in the middle of the year with even more space, people familiar with the matter told Bloomberg, requesting anonymity because they’re not authorized to speak to the public. The revamped store will offer products ranging from handbags to furniture, giving customers more stock to choose from. (Hermès did not respond to Bloomberg’s request for comment.)
The investment into Hong Kong is mirrored across the luxury sector, as companies see the city’s residents as a key to future growth. Last year, a report showed that Hong Kong is home to the most ultra-high-net-worth individuals, with more than 12,000 people who have more than $30 million in the bank. Those residents likely have money to burn on Hermès’s Birkin bags (still one of the most popular purses on the market) and logo belts. That’s in contrast with China, a nearby locale that used to have a high percentage of luxury shoppers, but which has recently seen both middle-class and wealthy people close up their pocketbooks due to economic headwinds.
Along with Hermès, brands like Chanel, Dior, and Louis Vuitton have recently turned to Hong Kong: Chanel last year started to rent space in Causeway Bay for 3 million Hong Kong dollars ($384,000) a month. Louis Vuitton held its first Hong Kong fashion show in November and opened a menswear pop-up and café there in January. And Dior has plans to show its men’s pre-fall collection in Hong Kong in March.
As for Hèrmes, the Lee Gardens store is just one of seven that the label has in Hong Kong, Bloomberg noted. Once it reopens, it’s sure to give the central flagship location a run for its money—perhaps quite literally.
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