Can Hermès lead Hong Kong’s comeback as a global luxury hub?

Hermès has reopened its expanded store at Lee Gardens in Causeway Bay, Hong Kong. Originally opened in 1997, the store is one of six Hermès locations in the city. Designed by Parisian architecture agency RDAI, the new three-story store draws inspiration from the nearby natural landscape, featuring curves and ridges reminiscent of Hong Kong’s masonry wall trees and metallic interior panels. A triptych of horses in motion by Japanese artist Ryu Mitarai adorns the store’s windows. The lower floor offers men’s and women’s ready-to-wear items, equestrian goods, and home collections, along with two private rooms, while the first floor showcases leather, watches, and jewelry in a wooden cocoon setting. More importantly, Hermès’ latest reopening has led observers to wonder whether the Chinese territory will reemerge as a major luxury destination. Leading the way in the city’s retail comeback are international luxury labels such as Chanel, Dior, and Louis Vuitton. Chanel recently stated that, five years after the house’s first scheduled show in the SAR was canceled due to political demonstrations, their Cruise 2024/25 runway collection will take place in Hong Kong on November 5, 2024. The city’s retail sector saw a gradual recovery throughout 2023; according to government statistics, growth was 16.2% for the year. Data released by Tsim Sa Tsui-based shopping mall K11 Musea in August 2023 showed that luxury sales increased by 260%, while foot traffic increased by 120% from pre-pandemic levels. According to the same survey, nearly 30% of the retail space owned by New World Development reported record-breaking sales. Meanwhile, in the city’s art industry, the results of Christie’s Hong Kong’s spring auction were just released. A total of HK$2.3 billion ($294.4 million) was sold, with an average transaction rate of 90% and 42% of the items selling for more than their highest estimated value.

Can Hermès lead Hong Kong’s comeback as a global luxury hub?

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Published June 14, 2024

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Can Hermès lead Hong Kong’s comeback as a global luxury hub?