LVMH, the world's top luxury conglomerate, is reportedly shifting its focus away from Hong Kong and towards China's booming metropolises, including Shanghai, Chengdu, Guangzhou, and Shenzhen.

The move reflects a waning interest in Hong Kong as a premium shopping hub due to a significant drop in sales and tourism following the 2019 anti-government protests and the COVID-19 pandemic.

As mainland Chinese consumers increasingly prefer to shop domestically, LVMH has relocated some senior executives to the mainland and moved the regional headquarters of some brands to Shanghai.

Chinese shoppers' pivot to buying more domestically is expected to continue, with the portion of total luxury spending within the mainland almost doubling from pre-COVID levels.

Meanwhile, shopping centers such as Hainan and Macau are emerging as up-and-coming luxury destinations that are likely to erode Hong Kong's significance further.