Luxury retailers flock to Hong Kong

A prestigious conference in Hong Kong brought together leading figures from the world's foremost luxury and fashion brands. Entitled "Luxury 2004: The Lure of Asia", it was the first time the event has been staged outside Paris.

The organizer -- the International Herald Tribune (IHT) -- chose Hong Kong for good reason: The city is one of the biggest consumers of luxury goods in Asia - a region which now represents 40% of the world market in luxury brands.

"The people of this city are avid consumers of luxury goods with sophisticated and discriminating tastes,” said Hong Kong’s Chief Executive Tung Chee Hwa in his keynote address at the conference. “Many of the world's best known fashion names have established their Asian headquarter or Asian flagship stores in Hong Kong.”

He added that, "Hong Kong has the highest ownership rate of Rolls-Royce and Mercedes-Benz cars on Earth. We are a leading importer of cognac. And we buy and sell with equal enthusiasm. Hong Kong is the world's second-largest exporter of garments, travel goods, handbags, watches and fur clothing, and the third-largest exporter of fine jewellery.” 

The IHT had earlier described Hong Kong's Central district as "the 5th Avenue of the Far East" because it has the highest concentration of top International labels. 

The two-day conference drew business leaders and top designers from the highest echelons of the industry, who came to discuss the challenges and opportunities of the Asian market. 

"I wanted people to share with us the interest, the excitement that we feel about Asia,” said Suzy Menkes, the IHT’s Fashion Editor and co-ordinator of the conference. “I like to feel that this is also unique for Hong Kong. There's a vibrancy and energy to the city and certainly on the retail side. The joint is jumping." 

The luxury retail sector in particular has seen a phenomenal growth in the past decade, and it continues to grow, thanks to ever greater demand
from Chinese consumers. 

"It's one of the fastest growing regions and it's why our companies have decided to participate in this very important conference," said Bernard Arnault, Chairman of LVMH Moet Hennessy Louis Vuitton.

"We are enjoying the Asian customer because it is very reactive to what you do, but it does not mean that she will except anything you do, she knows what's right and wrong, and she's a great challenge," saidFerruccio Ferragamo, the CEO of fashion house Salvatore Ferragamo Italia. 

With more luxury and fashion brands choosing Hong Kong as their regional headquarters than any other Asian city outside Japan, Hong Kong now stands as one of the great luxury capitals of the world. 

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