Hong Kong Causeway Bay is once again considered the most expensive retail area in the world. As someone from Hong Kong, I have always known that Causeway Bay is one of the most expensive places. Although I go there so often, I never realize that the property price is that high. However, all these leave me a question: If the rent is so high, how high must their profit margin be?
With a fixed cost that high, it is hard to imagine how clothing stores and pharmacies (There are actually pharmacies in the most expensive region in the world!) can actually survive in this region. However, in a consumer point of view, when I buy a piece of clothing in the clothing stores in Causeway Bay, am I actually paying for the beautiful design of the clothing, or am I paying for the rent so that I can buy that piece of clothing in a convenient location? It builds to my understanding on value proposition that business doesn’t only create value for providing a service or product for you, but there is also value in making it more accessible.
Accessibility can be expensive, just look at Causeway Bay.
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