USA-China, trade deal: what about luxury fashion in Hong Kong?

USA-China, trade deal: what about luxury fashion in Hong Kong?

USA and China have signed the first phase of a long-awaited trade deal, signalling an easing to two years of tensions. Tariffs imposed on Chinese goods by the Trump administration, alongside rising labour costs in the country, have pushed labels including Calvin Klein, Tommy Hilfiger and Levi’s to move part of their production elsewhere as Voguebusiness reports. Brands now have some respite as new tariffs on $160 billion worth of Chinese goods, including clothing, were suspended. But challenges remain for companies operating in Greater China. In Hong Kong, luxury brands are struggling with decreasing tourism and spending after almost eight months of consecutive protests. Chow Tai Fook, the world’s second-largest jeweller by value, has announced the closure of 15 of its 91 stores in the city, and foreign investors and brands might consider doing the same, writes data editor George Arnett. Socio-political headwinds are not the major issue that the industry will continue to face. In 2019, fashion awoke to the importance of sustainability, but the seriousness of their commitment and willingness to adopt new business models will be tested in the year ahead, reports sustainability editor Rachel Cernansky. Finally, companies selling curated sets of apparel like M.M. LaFleur, Aday and Vetta are becoming increasingly popular with customers seeking convenience and reliable wardrobe basics, writes contributor Kaleigh Moore.