Retail scandal highlights potential losses

Hong Kong- Market information company TNS latest study highlights the highly-publicised scandal regarding the sale of counterfeit goods to and mistreatment of mainland Chinese tour groups may cause potential for devastating losses to Hong Kong's retailing industry.

In the study, Hong Kong was named as the number one destination of nearly three quarters of mainland travellers (74%) in cities across China with significant shopping budgets. Average Chinese travellers set aside close to RMB5,000 (HK$5063) each to spend on shopping, with one in three budgeting as much as RMB6,000 (HK$6072).

The study indicates any impact of a downturn in mainland tourism will not be limited to the jewellery and watch retailers at the centre of the scandal. Whilst 45% of mainland tourists have plans to purchase these items on holiday, an even greater proportion expect to purchase electronics (69%) and clothing (55%), with brands such as Sony, Nokia, Christian Dior and Louis Vuitton named in the TNS survey as top choices.

"With the mainland representing such a highly lucrative market for outbound travel, Hong Kong cannot afford to rest on its laurels amid increasingly fierce competition for China's burgeoning number of increasingly wealthy and discerning travellers," Neel Banerjee project director of TNS said.