Business Maverick: Pain From Hong Kong Protests Spreads as Luxury Names Get Hit

Swiss luxury-goods maker Richemont became the latest casualty, saying Thursday the street demonstrators dealt a blow to local sales. The owner of Cartier and Van Cleef & Arpels echoed Swatch Group AG in saying that the unrest in Hong Kong, the top export market for Swiss watches, weighed on sales due to store closures and lower tourist arrivals.

HSBC estimates that 350,000 mainland Chinese tourists will stay away this year because of the unrest, SCMP. Flight bookings from Asia — excluding the mainland and Taiwan — to Hong Kong fell 5.4% in the period of June 16 to July 13, according to researcher ForwardKeys. The setback comes at an inopportune time for retailers already facing headwinds from the trade war, a depreciating Chinese currency that lowers mainland tourists’ purchasing power and the threat of a global recession affecting consumer spending, said Jennifer So, senior analyst at Lego Asset Management in Hong Kong.

“Retailers that rely more on tourist spending or discretionary spending like jewelry, cosmetics and hoteliers will suffer the most,” So said. “Online spending and e-commerce will fare better.”

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