What: Harbour City, Hong Kong’s largest mall, is focusing on luxury to attract consumers.

Why it is important: Having an exclusive product offering and providing luxury experiences are key in attracting customers as consumer behavior changes during the post-pandemic era.

While Hong Kong is seeing a return of tourists, its retail property owners and tenants are being threatened by the prevalence of e-commerce and competition from other Chinese locations.

Harbour City has long been a destination for high-spending Chinese tourists, however, sales are being hindered by limited flight capacity and product supply issues for brands. While these issues are expected to be resolved and Harbour City has seen sales and foot traffic return to more than 70% of its 2019 peaks, the mall is having to work harder than before to attract customers and get them to spend as they previously did.

With growing signs of consumer spending on the mainland and the weakening economy putting pressure on consumers, the mall is focusing on its exclusive offerings and strengthening its relationships with popular brands.

As a result of this changing consumer behavior, landlords and retailers in Hong Kong have to offer more than just space. Harbour City has 530 meters of high fashion frontage that includes all the big names such as Chanel, Louis Vuitton, and Prada. The flagship stores offer exclusive or limited products to attract customers to visit these specific locations.

Hong Kong’s biggest mall amps up luxury appeal to compete for shoppers