Luxury Brands should be cautious of the economic state of Hong Kong after Protest
(Image source: http://www.bbc.com/news/business-29438025)
The protests in Hong Kong have taken its toll on Hong Kong’s economy. Tourism is one of Hong Kong’s main sources of income, next to serving as logistics center for China managing its imports and exports. Hong Kong’s current economic state is in a crippling state and assuming many workers are not content with China as well. Hong Kong being a Special Administrative Zone cannot simply abide with China’s economy. Hong Kong serving as one of the financial centers in Asia and the world means that it cannot allow for a coup, which will escalate from a protest. In my opinion if the protests continues, Hong Kong’s status of a “sovereign” will not hold long if the protests continue; once the economy is jeopardized. As well as the center hub for the world’s economy will face an obstacle is the current political matter is not resolved. This is harmful to the excessive numbers of luxury brands in Hong Kong that is highly dependent on tourism, which a large proportion is contributed by mainland Chinese tourists. This is an economic and social problem for these companies and should be seen as a threat. Failed measures to solve the protest peacefully with uncooperative China will not only jeopardize Hong Kong’s economy and relationship with China and its tourists but also the companies in Hong Kong that are highly dependent on tourism.