What happened
Swiss sports brand On is taking its unique collection of footwear, clothing and accessories to Hong Kong, according to reports. The popular running retailer is said to be launching its first store in Central, the city’s commercial and financial district. On’s newest Hong Kong brick-and-mortar store will comprise over 278 square meters, at a monthly rent of $78,000.
While this is the brand’s first flagship store in Hong Kong, On already has opened 10 retail locations in mainland China over the last year.
The Jing Take
On’s Hong Kong flagship announcement comes after reports of luxury retailers reentering the once-popular Asian shopping and tourism hub. Following the city’s 2019-2020 pro-democracy protests, as well as lengthy Covid-19 lockdowns, the city’s retailers and businesses once feared that things would no longer be the same as before.
However, in recent months, Hong Kong's retail scene may be experiencing a robust resurgence, with Hermès leading the charge. The French luxury brand is investing in the city's revival by renovating its Causeway Bay store at Lee Gardens, which set to relaunch in the middle of this year.
Moreover, in the case of brands like On Running, China is seeing a surge in outdoor sports activities, particularly among younger consumers. As Jing Daily has reported, China's General Administration of Sport has forecasted that the nation’s outdoor sports industry will surpass 3 trillion RMB (around $410.8 billion) by 2025. As of 2021, the country boasted more than 400 million individuals engaging in outdoor sports activities.
As for Hong Kong, despite continued concerns among global businesses over the region’s implementation of new, harsher penalties under its national security law, which came into effect March 23, the city’s tourism and retail firms are optimistic that mainland Chinese tourism and global visitors will be making a comeback.
During this year's Lunar New Year holidays in February, the majority of inbound tourists to Hong Kong, over 1.44 million visitors during the eight-day period, were from mainland China. Specifically, around 1.25 million visitors came from the mainland, constituting more than 87 percent of Hong Kong's total inbound tourist arrivals, as reported by the HKSAR Immigration Department.
The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.