Hong Kong's unique role as a gateway connecting the Chinese mainland with the rest of the world is making it a preferred destination for international brands seeking to expand their presence in Asia.
KIM JONES, the eponymous fashion label founded by renowned British designer Kim Jones OBE, is set to open its first-ever retail flagship store in HK in the second half of 2027, signalling international brands' confidence in the city's core commercial districts, consumer spending power and role as a global gateway.
As HK enters a new stage of development and prosperity, its economy has shown signs of improvement and its retail market continues to recover, attracting a growing number of international brands.
The latest data from the Census and Statistics Department showed that the value of total retail sales in August reached approximately HK$32.1 billion, up 5.6 percent year-on-year. The increase exceeded market expectations and marked the 16th consecutive month of growth. Sales of jewellery, watches and clocks, and valuable gifts—a category reflecting high-end consumer spending—rose by more than 10 percent year-on-year.
A survey report by a French organization ranked HK the world's second-most popular city for luxury shopping, ahead of Seoul in South Korea and Paris in France.
KIM JONES chooses HK over Paris, London and New York
The decision to establish KIM JONES' first physical retail flagship store in HK, rather than in fashion capitals such as Paris, London or New York, places the city at the centre of the brand's global commercial strategy and underscores its confidence in the HK market.
Jones said he had long been fascinated by the relationship between fashion, art and architecture, and by how these disciplines could inspire one another. HK is a city with which he is very familiar, he said, adding that the decision to open the flagship at Central Yards, a new commercial landmark in Central, would provide an opportunity to explore these ideas in a new environment.
He said he looked forward to creating a space that would reflect both the brand's distinctive identity and its future direction.
Lee Ka-shing, chairman of Henderson Development Limited, said a number of overseas brands had chosen Central Yards for their HK debuts, including luxury labels and a diverse range of dining brands. He expected the development to attract not only local consumers but also visitors from around the world.
The opening of KIM JONES' first global physical flagship store at Central Yards marks an important milestone for the project and highlights HK's role as a global hub for creative and cultural exchange, Lee said.
In February, French haute couture house Schiaparelli also chose HK as its gateway to Asia, opening its first permanent salon in the region. It is the brand's seventh permanent salon worldwide and its first in Asia.
Delphine Bellini, the brand's chief executive officer, said HK's position as a global luxury hub was irreplaceable. The city combined deep cultural heritage, an international outlook and an innate appreciation of craftsmanship, all of which aligned closely with Schiaparelli's brand values, she said.
HK's connectivity makes it a preferred base for international brands
Prada opened its largest flagship boutique in the Asia-Pacific region at Landmark in Central earlier this year. Covering approximately 14,000 square feet, the store offers the brand's full range of men's and women's collections.
Prada said the relocation of its long-established Landmark store, which had operated for more than two decades, to the new premises reinforced its presence in one of HK's prime retail locations.
Italian menswear brand Pal Zileri, which established a presence in HK in 2024, also sees the city as an ideal base for expanding into the Chinese mainland and broadening its international customer base.
Leo Scordo, the brand's chief executive officer, said HK was an international city with a unique geographical advantage, situated close to the mainland while maintaining strong connections with the rest of the world.
Deloitte's analysis indicated that a stronger yuan had made local goods more attractive to mainland visitors. Meanwhile, an improving property market could continue to support spending by high-net-worth individuals in HK.
Li Wei, senior economist for Northeast Asia at the Mastercard Economics Institute, said earlier that the economic outlook for the second half of the year remained positive, with growth transitioning towards broader and more sustainable drivers.
Spending by high-net-worth households, a recovery in property market activity and improving financial conditions continued to support overall consumption, he said.
KIM JONES' first global flagship store at Central Yards is expected to open in the second half of 2027. The two-storey outlet will cover approximately 4,000 square feet.
Jones launched his eponymous menswear label in 2003. He became creative director of Dunhill in 2008 and subsequently closed his own label.
Lower retail rents draw overseas and mainland brands to HK
A substantial decline in street-level retail rents in HK's prime shopping districts from their previous peaks has attracted retailers from overseas and the Chinese mainland.
Property consultancy Colliers said Hong Kong had successfully drawn an increasing number of brands from outside the city in recent years, with retailers targeting prime districts such as Central, Causeway Bay and Tsim Sha Tsui, supporting leasing activity in the retail property market.
The decline in rents has opened up a more diverse retail landscape, Colliers said. Prime locations once dominated by chain watch shops and pharmacies are now welcoming a wider variety of businesses, while some brands have successfully established themselves in core shopping districts and repositioned themselves to enhance their market image.
Data showed that, following a rental bidding frenzy a decade ago, retail rents are now 70 to 80 percent below their peak levels.
With rents returning to more reasonable levels, the risks associated with testing the Hong Kong market have fallen significantly, Colliers said. A growing number of fashion and accessories retailers are making their Hong Kong debuts.
Examples include mainland menswear retailer Heilan Home, which is positioned as a one-stop wardrobe for men and has opened in Central; mainland women's fashion brand W.Management, which has set up at Fashion Walk in Causeway Bay; and Japanese second-hand jewellery and handbag retailer Otakaraya, which has opened on a busy section of Nathan Road.
Central Yards leases more than 70 percent of office space
Leasing activity in Central's Grade A office market has continued to recover. The first phase of Central Yards, Henderson Land Development's new waterfront project in Central, has secured tenants for more than 70 percent of its office space, with interest in much of the remaining 30 percent.
Potential tenants currently in negotiations include technology companies, and the group expects to announce further details in the short to medium term.
The group's Grade A office development, The Henderson in Central, has reached an occupancy rate of 95 percent.
Lee Ka-shing said he remained confident in the outlook for Grade A office leasing.
The first phase of Central Yards has a total gross floor area of approximately 710,000 square feet, comprising 300,000 square feet of retail space, 310,000 square feet of office space and a 100,000-square-foot Broadway-style theatre. It is expected to be completed next summer.
Located near the podium-level shopping mall of the International Finance Centre (ifc), Central Yards is expected to complement rather than directly compete with the existing retail destination, Lee said.
Central Yards will introduce new brands and immersive experiences centred on outdoor spaces, as well as new dining concepts targeting younger consumers. Its distinctive positioning is intended to complement the ifc mall, he said.
(Source: Ta Kung Pao; Editor: Zoey SUN)
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