Clothing Brand Giants Compete For Shops In Hong Kong Central

It is reported that the rent of shops in Hong Kong continues to rise, while international brands continue to rent shops in the core area at sky high prices. Fast fashion clothing In order to compete for the position of H&M's existing store, giant ZARA was willing to pay twice the rent and successfully secured the store lease. According to media calculations, the store needs to sell 1825 pieces of goods worth HK $200 per day to maintain the rent.

According to the report, the store that the two sides are competing for is located in the core business area of Hong Kong - Lane Crawford Building in Central, and the owner is Huide Feng. Previously, the store was the flagship store of Swedish fashion chain H&M opened in March 2007, with a monthly rent of 5 million Hong Kong dollars.

With the expiration of the lease this year, it is rumored that H&M will increase the rent by 25% and continue to renew the contract. However, with the intervention of ZARA, a fast fashion clothing giant from Spain, the rent level has been significantly increased.

It is reported that ZARA will rent the 30000 square foot berth at a monthly rent of 1.4 million US dollars, equivalent to about 10.92 million Hong Kong dollars, twice the current monthly rent of H&M of about 5 million Hong Kong dollars. At the same time, this lease is also the largest monthly store rent case in Central Hong Kong, exceeding the current monthly rent case of A&F clothing brand stores of HK $7 million.

The shop includes a basement, with shops on the first and second floors underground, covering an area of about 3000 square meters. If its monthly rent is calculated, it needs to sell at least 1825 pieces of goods of HK $200 per day to maintain the rent.

In recent years, Central has been welcomed by mainland free travelers, and the huge shops in its core area, Queen's Road, have become a hot spot for foreign brands to enter Hong Kong because of the publicity effect of their external walls.

In addition to the competition between H&M and ZARA in Central, the fast fashion clothing in the United States brand GAP has also rented a large area of shops in Central, facing COACH and H&M, forming a fashionable golden triangle.

Hong Kong media said that although retail data showed that the willingness of individual tourists to spend in Hong Kong was declining recently, the rent of Hong Kong shops continued to rise. Industry insiders believed that the decline in the willingness of individual tourists to spend in Hong Kong was only a temporary phenomenon, and there was still room for long-term development. In the second half of the year, the rent of Hong Kong shops still increased by 10%.

However, the increasing rent of shops will stimulate inflation, which will make many small and medium-sized enterprises retailer Forced to relocate or close the business, the shop rent finally frothed.