HONG KONG HAS long established itself as the Asian headquarters (outside Japan) for practically every European and American luxury brand. It's also the most productive retail market in sales per square foot in Asia ex-Japan. It's no surprise then that Asia contributes to 25 per cent of total luxury sales and, including Japan, accounts for about 40 per cent of the market, putting the entire region ahead of the US and Europe.
Then there is, of course, the buzz around business in China where investment accounts for a significant share of every major company's business plan, with Hong Kong playing a key role. The mainland is also viewed to have the most extraordinary potential growth in branded goods among emerging markets.
It's for these reasons that Luxury 2004: The Lure of Asia is convening this year at the Grand Hyatt hotel in Hong Kong (December 1-2) after three years of Paris conventions.
'The move [from Paris to Hong Kong] is significant because it confirms the direction [of fashion houses and brands] and market [China consumers] for luxury for the near and medium term. [Fashion editor at the International Herald Tribune] Suzy Menkes told me that she would have liked to hold the conference in Shanghai, but still it's logistically easier to hold the conference in Hong Kong,' says Handel Lee, co-chairman of Three on the Bund, House of Three.
The conference will bring together business leaders and designers to discuss the challenges, opportunities and other topics for international fashion brands operating in the region or planning to enter the luxury goods market here.
'As this is an international conference, the delegates come from every corner of the globe. The audience tends to be a comprehensive mix of business and industry executives that are associated with some facet of the luxury and fashion business,' says Randy Weddle, Asia-Pacific managing director of the International Herald Tribune, who's organising the conference. The opening keynote speaker will be Bernard Arnault, chairman of LVMH. His participation is in line with previous keynote addresses by Tom Ford (2001), Ralph Lauren (2002) and Giorgio Armani (2003).
This year, speakers such as Diego Della Valle, chairman and chief executive of Tod's, Alber Elbaz, head designer of Lanvin, and Ferruccio Ferragamo, chief executive of Salvatore Ferragamo Italia, will explore the subject of retail expansion of the luxury and fashion sector within Asia.