Retail organisations in Hong Kong have realised the need to move onto digital platforms, according to recruitment and HR services provider Randstad.
These organisations have their sights set on e-commerce, and key players are making moves to implement new e-commerce platforms to complement their business strategies.
Professionals with digital skills have become highly sought-after and they prefer to hire candidates with digital and analytical experience.
E-commerce focused organisations are slowly but steadily grabbing market share from traditional retailers who did not implement their own digital strategies.
"The traditional retail landscape has looked particularly poor this year and sales continue to fall and diminishing tourism numbers, especially from Mainland China, a key driver for revenue in the past," said Paul Shelton, director for Sales & Marketing, Supply Chain & Procurement and Construction, Property & Engineering, Randstad Hong Kong. "We're currently in the midst of an adaptation of the retail landscape. No longer are big name retail brands dominating the market, the current slump has allowed smaller players to emerge and innovate."
No signs of recovery
The overall sales in the retail sector in Hong Kong continues to show no signs of recovery and disappearing visitor numbers have led to the 16th consecutive month of declining retail sales.
Year-on-year, retail sales have dropped 13 percent and tourism numbers from Mainland China have gone down by 18 percent.
Watches and jewelry, popular items with affluent Chinese tourists, are facing a decline of 24 percent.
Despite the bleak outlook for the retail landscape, overseas fast fashion and mid-priced brands are leveraging low shop rents to enter or expand their operations in Hong Kong.
Small companies are also testing the marketplace with pop-ups stores to drive awareness as well as test the viability of longer term arrangements.
"With this opportunity for smaller organizations to stretch their legs, it will be interesting to see how the retail landscape will change in the longer term as small to medium retail companies compete with the larger organisations on a more level playing field," added Shelton.
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