Demand for luxury goods is evaporating in the Special Administrative Region, as social unrest continues. The latest victim is the Swiss watch industry, which saw exports to Hong Kong plunge in October.
Swiss watch exports are being hindered by the dire economic situation in Hong Kong, where exports have fallen by 29.7 percent in the past month, compared to an upturn of 6.5 percent in exports to the rest of the world, according to data by the Federation of the Swiss Watch Industry.
«This decline in watch exports is more in line with the actual situation in the local market than in recent months and had a significant impact on global growth, reducing it by five points,» the industry group said in a report published on Tuesday.
Global Exports Strong
The 1.5 percent overall growth means that Swiss watch exports have now crossed the 2-billion-franc ($2.02 billion) mark for October. Growth was steady in the industry's main export markets: the U.S. (9.5 percent), China (17.6 percent), Japan (11.3 percent). Exports to Europe grew 8.3 percent, driven by demand from the U.K. (12.9 percent) and France (24.2 percent).
China is the second-largest export market for the Swiss watch industry, with a 10.8 percent share, just behind the U.S., which has a 11.2 percent share.
Hong Kong Suffering
Luxury goods are almost half the cost in Hong Kong compared to China, but tourists and wealthy mainland Chinese visitors have avoided Hong Kong in recent months as streets and up to 30 major shopping districts have been shut down on and off as a result of large-scale protests, which have been ongoing since June.
Many wealthy residents are also reportedly looking for alternative residences and safe havens for their assets.
