Unrest in Hong Kong, France and Chile has affected retail sales as they have fallen 24 per cent in Hong Kong.
Even the Christmas season couldn’t help fashion retailers to get their numbers up. Historically, Hong Kong is known for being one of the key markets for luxury in the world. It represents five per cent of global luxury sales with a higher-than-average profitability for luxury groups. But the ongoing protests have led companies like Hugo Boss, Levi Strauss and Ralph Lauren to close some of their stores. Similarly, retail sales have fallen in 30 per cent in France, and 27 per cent in Chile. Strikes have crippled French transport. Sales were down 30 per cent to 50 per cent in the holiday season, a time when most retailers expect to achieve their full year results. French consumer confidence fell more than expected in December, hitting a five-month low. Paris is the headquarters of many of the fashion and luxury houses of the world.
Chile is one of the main regions in Latin America for fashion. About 60 per cent of Chilean consumers spent less amount of money during the season than the same period last year due to an increasing concern for the future of the economy as well as reducing debts.