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Luxury retailers are considering relocating their regional headquarters to China from Hong Kong to be close to their major growth market, which could add further pressure on office rents in the city, according to market observers.
Brands including Versace, Salvatore Ferragamo, and LVMH-owned Bulgari, Fendi, Givenchy and Celine reduced headcounts in their Hong Kong headquarters last year and shifted more resources to mainland China, according to market sources.
Beauty conglomerate L’Oréal is also planning to downsize its Hong Kong regional office and move positions to China and Singapore, while French shoe brand Ash will move its operations to Shanghai, the sources said. A few others are waiting for border restrictions to ease, they added.
This will put further downwards pressure as Grade A office rents are expected to decline by 5 to 10 per cent this year, after falling 17 per cent in 2020, says Savills
https://www.scmp.com/business/article/3116646/relocation-top-luxury-brands-regional-headquarters-china-likely-weigh