Apr 05, 2018

Hong Kong Jewellery Sales Up 21% in Jan-Feb 2018 on 10% Y-o-Y Rise in Tourist Traffic

Hong Kong’s retail sales of jewellery, watches, clocks and valuable gifts were up 21% in the first two months of 2018, according to data released by the Census and Statistics Department of the Hong Kong Special Administrative Region.

This comes on the back of a huge 33.7% hike in sales in this category during February, the strongest reported in nearly five years, and a 10.7% revised growth figure for January. As the Chinese New Year fell in February this year, while in 2017 it was in January, analysts look at the combined figures of the first two months for a more accurate picture of the ground reality.

Combined sales across all retail categories for the first two months were up 15.7% in value and 13.9% in volume terms, the data showed.

Much of the growth can be attributed to the combined impact of higher overseas and domestic consumer spending. Government estimates that total tourist arrivals were up by 9.9% in Jan-Feb 2018, with the number of visitors from the mainland going up 13.6%. The economy has also returned to near full employment, aand the jobless rate is at its lowest in almost twenty years.

Significantly, the Hong Kong Retail Management Association (HKRMA) said that retail sales performance in February 2018 exceeded its expectation registering double digit increases of 29.8% in value terms and 28.2% in volume. The Association said that its member companies expect a high single-digit to low double-digit growth in first quarter of 2018.

Analysts are reported to have expressed the opinion that the recovery in retail sales is likely to continue over the rest of the year.