The world’s most expensive retail rents

As a shopping destination, Hong Kong has over the past decade charted a course towards the very high-end in brands — and it seems retailers are now paying a very expensive price for the trend.
With a 46 percent rise in rents, quarter on quarter, Hong Kong is now second only to New York in terms of what tenants pay for retail locations across the city.
Hong Kong last year surpassed Sydney as the second-most expensive city in the world, with the average cost being paid now hitting US$1,687 per square foot per year according to global commercial property company CB Richard Ellis.

New York still tops the charts with rents at US$1,900 but Hong Kong seems intent on closing the gap as the world’s leading brands continue to set up shop all over town.

Local media here have reported that even US casual retailer Abercrombie & Fitch has gotten in on the act and is paying HK$7.5 million (US$964,000) a month for a shop in downtown Central that’s estimated to cover around 12,000 square feet. It has up until now been occupied by high-end clothing company Shanghai Tang.
The fact that Hong Kong is the favorite shopping destination for mainland China plays a significant role in the demand for retail space here — a record 22.7 million arrived during 2010 and April saw 2.1 million cross the border.
Overall, retail rental rates grew 3.8 percent globally, year on year, according to CBRE.

The world’s most expensive retail rents
(US$/sq ft per annum)

1. (1) New York 1,900
2. (3) Hong Kong 1,697
3. (2) Sydney 1.301
4. (4) London 909
5. (6) Zurich 829
6. (5) Tokyo 807
7. (7) Paris 783
8. (8) Brisbane 753
9. (9) Moscow 721
10. (10) Melbourne 691
11. (11) Guangzhou 575
12. (12) Los Angeles 520
13. (14) Milan 500
14. (16) Munich 490
15. (13) Chicago 480
16. (15) Singapore 470
17. (17) Rome 461
18. (18) Beijing 449
19. (19) Frankfurt 442
20. (23) Shanghai 414

source:Luxuo

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Chinese luxury consumers opt for French products

French labels are the most sought-after luxury products for Chinese shoppers as a booming economy creates a growing legion of newly affluent consumers.
French brands are the top choice for mainland buyers, followed by those from Italy and Hong Kong, consultants KPMG said in their report “Luxury experiences in China”, based on a survey of 1,200 consumers from 24 cities.
“China continues its march towards becoming the largest luxury market in the world,” said Nick Debnam, the firm’s head of consumer markets for Asia Pacific.

“Year-on-year as this market becomes more crowded, it is harder for luxury brands to enter this space. We also see rising brand recognition,” he added.



According to the Hurun Rich List, the Chinese equivalent of the Forbes or Sunday Times rich lists, there are now 875,000 Chinese people worth over a million US dollars, and almost 200 of these are billionaires.
The KPMG study found that they are most fond of French cosmetics and perfumes, clothing and bags, Italian footwear and Swiss watches, while they opt for domestic brands when it comes to alcohol.
The survey also found that about 70 percent of respondents search online for information on luxury brands at least once a month.
“Luxury companies need to think about how their strategies reach key online influencers,” Debnam said.
The 1,200 Chinese consumers polled in the survey were aged between 20 and 45, and earned at least 5,500 yuan ($850) a month.