Concrete Analysis | Why aspirational brands offer a good bet for Hong Kong mall owners
With segment tipped to soar in Asia, landlords may find such outlets a safer bet than luxury
Luxury brands are having a hard time in Greater China. President Xi Jinping's campaign against corruption has had an immediate impact in dampening mainlanders' enthusiasm for the visible trappings of wealth.
Hong Kong's luxury retailers are recording diminishing turnover as a direct result.
Meanwhile, there appears to be no stopping the pace of sales at Hong Kong's Apple Stores.
Apple stands at the top of the table of "lifestyle" brands. This section of the market consists of products that are below luxury but are more premium than everyday items. They are generally accessible to middle-market customers while still commanding relatively high price points. Many such brands set out to be "aspirational".
Retail researcher Conlumino undertook last month an analysis of trends comparing expected growth rates by retail segment (everyday, lifestyle and luxury) between 2013 and 2018.
It predicts growth, averaged globally, in the everyday segment of just 2.6 per cent over the next five years, in luxury of 24.8 per cent and in lifestyle of 81.4 per cent. However, the standout figure of Conlumino's report is that consumer spending on lifestyle brands is likely to grow by some 277 per cent in Asia-Pacific by 2018.
