Hong Kong High-End Watch Market

Customers purchasing high-end watches in Hong Kong can be mainly divided into two categories: one category consists of local residents, who typically wish to buy for personal use or as gifts; the other category includes watch dealers from Hong Kong, mainland China, and around the world. Since high-end watches are sold globally, different markets are influenced by tariffs, exchange rates, and regional factors, leading to price variations.

The watch industry in Hong Kong began developing as early as the 1930s and became an important hub for high-end watches in the 1960s, with the quantity of Swiss watches exported to Hong Kong consistently ranking first in the world each year. However, in recent years, due to the rise of the Chinese economy increasing demand for luxury goods, and the significant depreciation of the yen since 2021, Japanese watch prices were not adjusted in time, attracting a large number of international buyers and dealers to rush for purchases, leading to nearly sold-out specialty stores. Consequently, Hong Kong’s position in Swiss watch export trade has slipped to third or fourth place.

Advantages of Hong Kong as a High-End Watch Market

Despite the decline in Hong Kong’s watch status, it remains one of the major markets for high-end watches globally, possessing several advantages that are unmatched by China, the United States, and Japan:

1. Free Trade Port

   As a free trade port, Hong Kong imposes no tariffs on imported and exported goods, allowing high-end watch dealers to conduct transactions at more competitive prices and export to other countries.

2. Tax Advantages

   Hong Kong has relatively low tax rates, especially for corporate and personal income tax, attracting many watch brands and dealers to establish businesses here.

3. Market Demand

   Hong Kong has a large high-end consumer base, with a continuous increase in demand for luxury goods. According to the UBS Global Wealth Report released on July 10, 2024, Hong Kong’s per capita wealth is $582,000, ranking third globally and first in Asia, providing a stable market demand for watch dealers. Although the quantity of high-end watches exported from Switzerland to China is comparable to that of Hong Kong, only a minority can afford high-end watches in mainland China, with most wealthy individuals still choosing to buy in Hong Kong.

4. International Business Environment

   Hong Kong is an international city with good business infrastructure, convenient transportation, and a multilingual business environment, facilitating foreign dealers in conducting business.

5. Watch Exhibitions and Events

   Hong Kong regularly hosts various watch exhibitions, attracting a large number of international buyers and brands, providing excellent business opportunities.

6. Quality Service and Expertise

   Watch retailers and dealers in Hong Kong typically possess extensive product knowledge and professional customer service, offering buyers a high-quality shopping experience.

These advantages collectively promote Hong Kong as a significant procurement location for global high-end watch dealers. Regardless of the buyer’s category, they undoubtedly hope to purchase their desired watch models at favorable prices. Compared to other regions of the world, prices in Hong Kong still hold a certain advantage.