Luxury spending rises in Hong Kong despite Covid-19’s hit to the economy, report says – and so do hopes for travel in the next six months

Hong Kong luxury goods sales rose 114 per cent year on year to US$424 million in April, even though most people are ‘very concerned’ about the local economy

Interest in local luxury brands has also risen, perhaps linked to anti-government protests and lockdown conditions in the past two years, one expert says

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A Louis Vuitton store in Central, Hong Kong. A report has revealed that, despite economic concerns, lockdowns and travel restrictions, people in Hong Kong are spending more money on luxury goods again. Photo: Bloomberg

Published: 7:15am, 1 Sep 2021

In spite of everything that has been happening, Hongkongers have not stopped buying luxury goods.

A report from consulting company Agility Research and Strategy shows luxury goods sales in Hong Kong grew 114 per cent year on year to HK$3.3 billion (US$424 million) in April, even though 63 per cent of respondents were “very concerned” about Hong Kong’s worsening economic situation.

Interest in local luxury brands has also risen, with around one-third of respondents interested in buying from Hong Kong luxury brands in the future, and more than a third having bought from local luxury brands in the past six months.

Amrita Banta, managing director of Agility Research and Strategy, suggested the rise in interest in local brands is connected with the anti-government protests and lockdown conditions in the past two years.

“Since Covid-19, with the reduction of Chinese tourists, I think it also made Hong Kong people realise that one cannot only depend on Chinese and international tourists for GDP [gross domestic product],” Banta said.