4 core area welcomes the Golden Week, cosmetics rentals are booming Industry: Retail mode changes Medium and low-priced goods become the main force
The Mainland’s May 1 Golden Week was officially launched. It has traditionally been a local retail season. In the bunker market, cosmetics accounted for more than half of the major retail rentals in Hong Kong’s core retail districts in recent months. The industry believes that the change in the retail model, the medium and low-priced goods are the main force, the core area shop rents are only stable, it is difficult to rebound sharply.
In the four major retail core areas in the past month, the major streets of Causeway Bay, Central, Tsim Sha Tsui and Mong Kok District recorded major rentals with a monthly rent of about $500,000. The cosmetics retailers were the only ones to take the lead.
Central Entertainment Street Shop Monthly Rent 1.2 Million
The latest one is the next shop in Central Entertainment, with an area of about 1,000 square feet. It was rented by Japanese cosmetics FANCL for about 1.2 million yuan per month and will open in a short time. It is understood that the entertainment shop has two berths in the ground, totaling about 2,000 square feet. It was rented by Pingzhi Automobile for about 4.5 million yuan per month. The brand has been moved out last year. Today, FANCL rents one of them, which is about 50% higher on a monthly basis.
Luxury retailers are shrinking, and cosmetics and personal care stores are expanding. According to the news, a pavilion in the Causeway Bay area covers an area of about 1,500 square feet and is leased out at about $680,000 a month. The rent is about $453. The new tenant is LUSH for personal care products. The shop is rented by Luk Fook Jewellery. The monthly rent is about $900,000. The new rent is 24% lower than the old one.
Cosmetics sales are ideal, attracting foreign brands to come back. French cosmetics SEPHORA is back in Hong Kong, pre-renting two shops in one place; among them, the underground of the Royal Fort in Causeway Bay, with an area of about 3,400 square feet, SEPHORA rents about 1 million yuan per month, renting Nearly 300 yuan.
At the same time, SEPHORA also pre-leased more than 4,000 shops in the Central International Finance Centre shopping mall, with an estimated monthly rent of 2 million yuan. Local large-scale cosmetics retailers such as Sa Sa and Bonjour are not willing to show up. They have expanded in Mong Kok and Tsim Sha Tsui in two months. Some of them have recently completed renovations and opening of business to welcome visitors.
Instant passengers increase sales of cosmetic drugs
Lin Yingwei, head of Hong Kong’s retail department of DTZ, analyzed that the consumption pattern of passengers has changed in recent years. Luxury goods are no longer the first choice for passengers. The medium and low-priced goods are dominant. The prices of cosmetics and medicines are cheaper. Passengers and local customers need to constantly supplement them. The goods sold in Hong Kong give confidence and demand is increasing.
He continued to point out that with the opening of the infrastructure, the number of customers returning to and from the day will be more favorable for the sale of cosmetics and pharmaceuticals, which is believed to continue to expand. In terms of rent, he expects that the core area shops will still be mainly expanded by medium and low-priced goods retailers. The renting power is difficult to compare with luxury goods. The rent is difficult to rebound. It is expected that this year will only develop steadily. In the Central District where there a