Letters | Two sides to a luxury retail trend in Hong Kong

Readers discuss the divergent outlook for luxury retail, Hong Kong’s unhealthy education culture, and the media narrative about Britain’s royal family

Hong Kong economy

Letters

Published: 11:30am, 6 Dec 2023

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The retail sector in Hong Kong, specifically the upper middle echelon, has faced challenging undercurrents for several years now. During the pandemic, the government’s Employment Support Scheme and the forecasted return of mainland tourists extended a measure of hope. However, the change in mainland tourists’ travel behaviour has ushered retailers into a stark new reality.

More accessible luxury retailers are having to contend with shifts in local consumption patterns, as well as exclusivity strategies by luxury brands.

A prime example is Harvey Nichols, a distinguished name in the field. In 2018, the high-end department store deemed it necessary to halve its retail space in Pacific Place in Admiralty and five years later, it has announced a complete retreat from Landmark in Central.

Historically, Harvey Nichols and comparable stores have catered to two main customer segments. The first, colloquially known as “wardrobe builders”, are wealthy, discerning customers largely immune to economic turmoil, as they typically established themselves later in their careers or lives. They consistently purchase the latest high-end fashion each season. Despite economic downturns, this affluent demographic has remained a steady source of business, still valuing the tailored in-store experience and personal service.

The second group, the aspirational shoppers or “Henrys” (high earners, not rich yet), are inclined to splurge on luxury items in times of economic prosperity. However, this demographic has been affected by the bearish economic climate. Such shoppers appear to have redirected their expenditure towards reasonably priced yet tasteful boutiques, exploited the weaker yen during trips to Japan, pursued online discounts or simply increased their savings. Consequently, their patronage of establishments like Harvey Nichols would have declined.

Given the high cost of prime retail space, luxury department stores with local wardrobe builders as their only steady customer segment find themselves struggling to compete.

Luxury brands, less perturbed by declining mainland shopper numbers, have adeptly crafted marketing strategies centred on exclusivity and scarcity, and are enjoying steady demand and lucrative profit margins. The queues outside the stores of luxury brands, regardless of escalating prices, attest to their enduring appeal.

Looking ahead, in a bearish climate, divergence across luxury retail seems likely – luxury brands will probably continue thriving with an emphasis on exclusivity, while other more accessible luxury segments encounter persistent obstacles.

Rob Yau, Kennedy Town

Unhealthy education culture is the root of youth problems

I am deeply concerned about the recent increase in suicide attempts among Hong Kong students. As a 2024 Diploma of Secondary Education candidate, I can attest to the intense pressure that accompanies these exams, as highlighted in the letter, “Drilling for exam a major source of student stress” (December 2).

Wong Yan-lung, chairman of Hong Kong’s Advisory Committee on Mental Health, has called on schools to prioritise students’ mental health over things such as study progress, after a recent study found that one in four children and adolescents suffered from at least one mental disorder in the past year.

I understand the intention behind his words.

Schools are often under immense pressure to maintain or increase their admission rates and produce top scorers to enhance their reputation.

Consequently, teachers and students are compelled to invest significant amounts of time and effort in achieving good DSE results, such that students are often drilled in past papers and focus solely on what the examination authorities expect them to know. This creates a culture of intense competition and places excessive stress on the individuals involved.

The emphasis on drilling may produce low-quality talent, as it does not encourage a deep mastery of knowledge, or the development of critical thinking and creativity. Exams become a competition that rewards diligence and carefulness without considering individual talents and aptitudes. This system has negative consequences for students’ mental well-being.

As these habits have become deeply ingrained in Hong Kong’s education system, it is important to address the root causes. While counselling and resilience-building are important steps in treating the symptoms, we must address the systemic issues that contribute to this culture of competition and stress.

Simplifying the syllabus is a potential solution. It could alleviate the pressure to some extent, though it could also decrease the quality of talent. Nevertheless, taking this step is better than doing nothing at all. It is time to rethink our approach to education and create a system that allows students to thrive without sacrificing their mental health.

Benz Wong, Ma On Shan

Britain’s royal family not racist

What small-mindedness prompts the media in its relentless pursuit of non-existent racism in the royal family? (“Royals mull response as names of ‘racists’ reported”, December 2.)

Surely, we can all look beyond the spitefully motivated accusations of the Sussexes. It would be a strangely unimaginative and uninterested family indeed that was not curious about the complexion of a product of a mixed marriage.

This insidious storyline suggesting racism is in itself shameful.

Christopher Lavender, Pok Fu Lam

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