Tuesday, 28 December 2010

Fact of the Day: Shopping in Macau

Hong Kong has always been the mecca for shopping in Asia mostly because it's tax-free.
 
But now Macau, which also has tax-free shopping, is challenging Hong Kong's status with more luxury brands snapped up in the former Portuguese enclave than ever before.
 
"Hong Kong is one of the leading markets in the world, but in Macau the incremental sales growth is even greater," says Jimmy Mak, Swatch Group vice-president of the Omega watch division for Hong Kong, Macau and Taiwan.
 
"The average sale amount in Macau is much higher than Hong Kong and probably the highest in the world," he says.
 
Macau now sells more watches and jewellery than it does clothing, supermarket goods and motor vehicles combined.
 
Did you need to read that again?
 
Macau now sells more watches and jewellery than it does clothing, supermarket goods and motor vehicles combined.
 
Wow.
 
In Hong Kong, local consumption accounts for 20 to 30 percent of luxury retail sales, but Macau depends almost entirely on tourists from the mainland. Macau's retail sector currently rakes in one-tenth of Hong Kong's HK$300 billion-plus ($38.55 billion) in annual sales.
 
However, overall retail sales in Macau grew 35 percent in the third quarter compared to a year earlier, almost twice as fast as Hong Kong's 18 percent rise.
 
Watch and jewellery sales in Macau jumped 62 percent from last year in the third quarter, accounting for 25 percent of all retail sales. 
 
If mainlanders buy luxury goods in China, they have to pay at least 30 percent in consumption taxes, value-added taxes and excise taxes on imported goods. No wonder they want to shop in Macau and Hong Kong. There's also the added cache of being able to say, "I bought this in Hong Kong/Macau."
 
Two strong enticing reasons for mainlanders to shop till they drop in the two former colonies.

1 comment:

  1. the widening gap between the rich and poor would fuel more and more disgruntle in the people. it is the root of civil unrest, spark for another revolution.

    ReplyDelete