Revenue from jewellery, watches, clocks, and valuable gifts witnessed an 18% decrease year-on-year, amounting to HKD 4.18 billion ($534.2 million). This downturn follows a period of growth in the jewellery segment and can be attributed to factors such as the normalization of tourism levels compared to the surge experienced last year upon the border reopening.
A significant portion of Hong Kong's luxury revenue stems from tourism, particularly from mainland China, with visitors driving demand for high-end goods.
However, recent trends indicate a shift among Chinese buyers towards plain gold jewellery, impacting diamond jewellery sales.
In the broader luxury market, sales of hard luxury items declined by 0.5% year-on-year for the first quarter of 2024, amounting to HKD 14.43 billion ($1.85 billion). Overall retail sales also saw a dip of 1.3% to HKD 101.47 billion ($12.98 billion) for the same period.
While factors such as high base comparisons for visitor spending and the Easter holidays contributed to the decline in March, government spokespersons remain optimistic about the sector's future. Anticipated revivals in inbound tourism and increasing household income are expected to bolster the retail sector. Additionally, governmental initiatives to promote events and boost consumer sentiment are seen as positive steps, although challenges may persist due to evolving consumption patterns among visitors and residents.
