What: After 19 months of contraction, September seems to be inverting the trend

Why is it important: The market is sensing light at the end of the tunnel, and all local players are imagining new promotion systems, including Sogo, to seduce local customers. There might be some of these systems that could be worth watching for other markets.

Due to low national tourism (-99% in August) and pandemic, adding up to political issues, Hong Kong has gone through difficult times in terms of retail sale this summer (YTD sales until August were 30% behind last year at €23.4bn vs. €33.5bn last year). However, it seems that there is light at the end of the tunnel, with a rebound sensed in September (also confirmed by IADS member Sogo) thanks to promotion actions led by almost all players on the market. There is currently an agility and creativity into addressing local customers in new ways that are the direct consequences and learnings from the crisis.

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