H.K. Retail Sales to Drop About 20% for 2020: PwC’s Cheng

The video discusses the economic challenges facing Hong Kong, particularly in the retail sector, due to the pandemic and pre-existing pressures. It predicts a 20% drop in retail for the year, with potential recovery in the last quarter. The reopening of borders is expected to boost tourism, especially from mainland China, aiding the luxury sector's recovery. However, many international brands are leaving Hong Kong due to high rents. In contrast, China's retail sector is recovering quickly, with a shift towards digitalization. The future of Hong Kong's retail remains uncertain, with high costs and legal uncertainties.

What is the predicted economic performance drop for Hong Kong in the current year?

• 40%

• 30%

• 20%

• 10%

Which group of tourists is expected to significantly aid in the recovery of Hong Kong's luxury sector?

• Australian tourists

• Mainland Chinese tourists

• American tourists

• European tourists

What is one of the main reasons for international brands leaving Hong Kong?

• High operational costs

• Lack of demand

• Political instability

• Poor infrastructure

What trend is becoming more prominent among retailers in response to the pandemic?

• Increasing prices

• Opening more physical stores

• Focusing on digitalization

• Reducing product lines

What has been a significant factor in the increased costs for running stores in Hong Kong?

• Supply chain issues

• Increased rent

• High taxes

• Labor shortages

Despite challenges, what status does Hong Kong hope to maintain?

• Cultural hub

• Financial center of Asia

• Tourist destination

• Manufacturing leader

What is a potential advantage for Hong Kong compared to other countries?

• Higher wages

• Tax-free status

• Better climate

• Larger population