A change in consumption patterns combined with a strong Hong Kong dollar and increased travel are weighing on jewellery sales in Hong Kong. 

Government data showed retail sales of jewellery, watches and clocks, and other valuable gifts were down 14.6 per cent to HK$30.25 billion (around US$3.88 billion) from January to July this year while July figures recorded a hefty 25 per cent decline to HK$3.74 billion (approximately US$480 million).

Overall, the city’s retail businesses reported a 7.3 per cent decrease in sales during the first seven months of the year while year-on-year numbers were down 11.8 per cent in July.

The government attributed the slowdown in retail sales to the continued impact of changing consumption patterns and the strong Hong Kong dollar. An increase in outbound travels by Hong Kong residents during the summer holidays was also a factor.

Hong Kong hopes several government-led measures to promote local businesses and a so-called “mega event economy” will boost market sentiment and support retail sales. 

“Continued growth of the economy and rising employment earnings should also provide support to the retail sector,” the government said. “Hong Kong will continue to assist small and medium-sized enterprises, including those in the retail sector, in adopting ready-to-use digital technology solutions to accelerate digital transformation.”