Hong Kong No Longer Cheap for China Luxury Shoppers

Mainland Chinese may no longer find holiday shopping trips to Hong Kong such a bargain due to rising travel costs and shrinking discounts on the kinds of luxury goods they typically buy, according to Beijing-based Law Evening News.

A five-day-four-night tour package to Hong Kong sells online now for 2,824 yuan ($450) per person double-occupancy. Come December the same package jumps to over 4,000 yuan ($630) and peaks on Christmas Eve at 5,532 yuan ($870).

And because luxury brands like Chanel, Luis Vuitton and Vacheron Constantin bumped their prices an average of 5-6% earlier this year, the Hong Kong price advantage over Beijing shops will shrink to only 5-20% this year.

Mainland shoppers have come to expect discounts of 30 – 40% on luxury goods except cosmetics, and up to 50-80% on many US and European brands. But those discounts are only now offered for products that are out of season. For trendy or seasonal items Hong Kong shops no longer provide more than a 20% maximum discount.

Based on these factors Beijing shoppers can save money by doing their holiday luxury shopping right at home, the article concludes.