Luxury Retail Development in Hong Kong and Macau Assignment

Luxury Retail Development in Hong Kong and Macau - Assignment Example The paper highlights on the significant role that marketers play and even some of the tactics that they apply to meet their objectives.As the report highlights in the next five to seven years, China is expected to overtake Japan and become the world’s largest luxury market according to a report by Lu.Two administrative regions of China, that include Macau and Hong Kong are the key indicators of the current surge in luxury retail market in the country. Demand for luxury goods in these two cities have been observed to be on the rise despite economic slowdown, which had severe effects on major markets in the world including China. Lucrative market in Hong Kong and Macau in addition to consumers’ increased buying power has lured international luxury companies to make investment in these two markets. This essay will provide an assessment of luxury retail development in Hong Kong and Macau in relation to evolution of luxury retail market in these two cities and marketing stra tegies, which are being employed by businesses parties in the industry.  Early 1990s marked the development of luxury retail market in China. Prior to 1980s, government restrictions hampered introduction of western goods and services in the country. Consequently, internationally established luxury companies could not be able to penetrate the Chinese market.  Majority of households in the country including those in Hong Kong and Macau had lower purchasing power.