3 March 2017, Hong Kong
The economic environment for retailers continues to be challenging due to numerous factors: slow economic growth in China, impact of strong US dollar, various uncertainties surrounding global trade and policies. Amidst disruption from slumping economic growth, shifting demographics and rising online shopping trends, it is important for industry players to know where to look for new paths to retail growth.
On 3 March 2017, Michael Cheng, PwC Asia Pacific and Hong Kong/China Retail & Consumer Leader, being one of the keynote speakers, shared insights on the Hong Kong retail market and growth strategies at the "Fashion & Luxury Retail Supply Chain Leaders Round Table 2017". The event was attended by over 80 decision-makers and c-suite executives from leading Hong Kong retailers.
Michael mentioned that 2016 was the most difficult year in the last decade for the Hong Kong retail and consumer products sector. The Hong Kong retail market, characterised by the slow growth of local population and domestic consumption, is strongly influenced by the mainland tourists coupled with China and Hong Kong government policies. He reminded retailers to remain vigilant to the challenges ahead, including slumping economic growth, heavy reliance on mainland visitors and their shopping habit, currency fluctuation and aging population.
Michael, nevertheless, noted that 2017 is off to a better start supported by a further improved economic outlook in Hong Kong, rebound in the number of mainland tourists, increased diversity in retail offering, and enhanced transportation network. The outlook for retailers is still favourable as the local retail market is forecast to rebound in 2018. He also provided updates on different sectors including luxury, clothing and apparel, as well as beauty and personal care.
He then concluded with insights on seven strategies for retailers regarding where to look for new paths to retail growth, namely: