BELLE Brand Withdrawal From Hongkong Has Triggered The Possibility Of Hongkong Property Fall.

The flagship store of Coach, the most prosperous area in central, has decided to close down because of a sharp decrease in turnover and unable to resist high rent. This is the last shop of BELLE fashion brand in Hongkong. It is said that a large portion of BELLE's exit from Hongkong is also too expensive for Hongkong to cause.

According to the analysis of the insiders, sales can not afford rents can be attributed to two reasons: first, sales have shrunk, lower than the expectations of businesses; two, commercial property rents are so high that they exceed the reasonable scope of business.

For the current Hongkong, these two problems may exist at the same time, thus speeding up the balance between the two factors and causing a sudden outbreak of the crisis.

BELLE mainland Hongkong's performance is poor

BELLE international is China's largest footwear retailer.

In fact, as with the business situation in Hongkong, BELLE's sales situation in mainland China is also not optimistic.

It is reported that BELLE international currently has 20228 stores in the mainland of China, 13704 of which are footwear stores, accounting for about 70%.

By the end of May this year, there were 13933 shoe stores in mainland China, that is to say, BELLE has closed 229 stores in the last three months, but in May

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The main reason for closing the store is the decline in sales. Data show that between June and August this year, BELLE International's footwear sales in the mainland dropped by 7.7% over the same period.

Previous reports also showed that between May and May, sales of footwear stores in mainland China dropped by 7.8% over the same period from 3 to May.

In Hongkong, BELLE had been closed at the brand shop of Langfang, Kwai Fong new town shopping centre, Tsuen Wan Tsuen Wan square and Tsim Sha Tsui in the city of Hong Kong, and the store in Tsim Sha Tsui in the first half of this year was converted into another BELLE brand Millies.

Hongkong shops rent rents big brands?

For the exit of BELLE, some businessmen say that it is closely related to the excessive rental of the shops in Hongkong and the unsustainable operation of the business.

"BELLE brand is different from other luxury brands. Its positioning is in the middle end and the price is more popular. It is not favored by local consumers in Hongkong."

This person said that when the mainland tourists significantly reduced, the impact of BELLE's operation can be imagined; at the same time, Hongkong shops rentals high global reputation, sales can not go shops naturally difficult to continue.

But on the other hand, commercial developers do not seem to be aware of the seriousness of the problem.

Hongkong media said that it was time for developers and businessmen to tide over difficulties. But developers did not reduce the meaning of store rentals, and even many real estate developers also raised their rents every two or three years in accordance with past practice, which made it difficult for many businesses to continue.

Early last month, there were media reports in Hongkong, including

(Gucci) the parent company, Kai Yun group and luxury goods group LV (LVMH), Prada (Prada) and others all said that if Hongkong landlords refused to rent down under the current downturn of retail trade, they would be willing to close their doors and businesses.

Some analysts said that if the iconic brands such as Gucci, LV and Prada had been withdrawn from Hongkong, Hongkong's "Asian luxury center" would soon lose its position, and this effect has begun to ferment.

In this regard, Fang Gang, a wholesale and retail member of the Hongkong Legislative Council, described the current economic environment as "worse than SARS (SARS)" and hoped that owners would be willing to reduce rent and spend time with the industry.

Agencies predict that housing prices will begin to decline next year in Hongkong.

The problem of excessive rental of commercial property highlighted by the recession of the retail industry is likely to drive the fall in real estate prices in Hongkong as a whole.

Last week, Morgan chase, director of Hongkong research enterprise and real estate business, predicted that Hongkong's economic slowdown will start to have a negative impact on the real estate industry. He thinks Hongkong's housing prices may hit a rally next year after hitting a record high.

Of course, he also said that this is not entirely caused by Hongkong's own factors, including the cooling effect of the mainland property market.

According to the study, due to strong demand, Hongkong's new housing prices will rise by 5% this year, while the second-hand housing prices will rise by 10%. However, the housing prices in Hongkong will probably decline from 5% to 10% a year from next year.

Liang Qitang said luxury brands are closing down stores, which will drag down the retail market and bring about an increase in unemployment in Hongkong, which will drag down real estate sales.

At the same time, China's slowdown in economic growth and financial markets may not be able to withstand the impact of US interest rate hikes, which may also make global investors panic.

"Compared with the Fed's rate hike, the pressure on Hongkong's economy is the issue of greater concern for the Hongkong market."