Luxury retail in Hong Kong just took a hit. According to official data, sales of jewelry, watches, clocks, and high-end gifts fell 18% year-over-year in January 2025, dropping to HKD 4.46 billion (~$573M USD). 😬
💔 That’s also a 4% dip from December 2024, and it’s not just luxury—overall retail sales dropped 3.2% to HKD 35.34 billion (~$4.55B USD).
So what’s behind the slowdown?
🧧 1. Lunar New Year Shift
The Lunar New Year came earlier this year (Jan 29 vs. Feb 10 in 2024), shifting most pre-holiday shopping into December instead of January—leading to skewed YoY comparisons.
✈️ 2. Tourism Hangover
January 2024 had a massive retail boost thanks to China–Hong Kong border reopening post-COVID. That momentum didn’t carry into this year.
Plus, more local Hong Kong residents are shopping abroad, not at home.
🔮 3. What’s Next?
The government remains hopeful, pointing to:
- Economic support policies from mainland China
- Tourism campaigns and sentiment-boosting efforts
- Rising employment income
💬 “Near-term retail will still be affected by changing consumption patterns,” a government rep noted, “but long-term recovery looks possible.”
TL;DR: Jewelry/watches/gifts down 18% YoY in Jan
🧨 Holiday timing & weaker tourist traffic are major factors
- 🧭 Outlook still optimistic with policy + tourism boosts on the way
- The sparkle will likely return—but not without a few bumps in the road first.