Four months of unrest in Hong Kong have hurt retail. Sales have fallen 23 per cent in August from a year earlier - the biggest decline on record - while the value of sales of jewelry, watches and other valuable items decreased by 47.4 per cent. Visitor arrivals dropped 39 per cent, with the number of mainland tourists to Hong Kong falling 42.3 per cent. It is estimated brands like Hermes and Tiffany will suffer sales declines of between 30 per cent to 60 per cent in the third quarter. Tiffany counts Hong Kong as its fourth biggest market. Watchmakers in particular are likely to be hurt – Hong Kong is a major centre for high-end timepieces. Hermes has been forced to temporarily shut some of its five stores as well as an airport shop in Hong Kong. However for those groups that have a well developed retail network across Asia, the Hong Kong protests do not necessarily mean losing money.

Hong Kong ranks among the world’s top five luxury destinations. It has long been a magnet for brands attracted by the flow of visitors from mainland China and accounts for between five per cent and ten per cent of the annual global sales of luxury goods.