The Phenomenon of the Proliferation of Branded Fashion in Hong Kong: Endless Queues, Tax-Free Too!

Dream - The progress of a country's economy can be seen from the sales of goods. Although not the only indicator, the presence of offline stores from several world-renowned brands can indicate the ability of the local population to buy luxury goods at fantastic prices.

Not just about the price, branded goods that target the wealthy and elite can also elevate a person's status. There is a special privilege in being able to buy luxury brands like Louis Vuitton, Dior, and Hermes.

These world-famous fashion brands have loyal fans who are always captivated by their modern productions. Louis Vuitton alone has a net income of US$310.78 billion, making it the highest-earning clothing brand in the world in 2022.

Just for information, the cheapest product from Bernard Arnault's brand itself reaches US$580 or equivalent to IDR 9 million. Louis Vuitton is also the most valuable luxury brand in the world with a value of US$32.3 billion in 2020, according to Fashion United data.

One of the sights seen when Dream visited Harbour City in Hong Kong is people lining up to enter branded stores like Louis Vuitton, Chanel, and Gucci.

Like the moment witnessed by Dream and captured with a camera when many people lined up to enter the Gucci store. Not far from this place, queues can also be seen in front of the Louis Vuitton and Chanel stores.

Apparently, there is a reason behind this phenomenon. Buying branded goods in Hong Kong is very different from Indonesia, because they are not subject to taxes.

Carolus Cui, a tour guide who accompanied Dream on a trip with the Hong Kong Tourism Board (HKTB) and Cathay Pacific, said that the Hong Kong government applies a one percent tax-free policy for branded goods.

“There is no tax, so they import branded goods, and the Hong Kong government doesn't even take one dollar,” he said to Dream on Wednesday, June 14, 2023.

This is done by the Hong Kong government to keep the economy running. Carolus revealed that branded goods in Hong Kong are only slightly more expensive than in Europe. As we know, many branded goods come from Europe. 

“No tax, it's only slightly more expensive than Europe. Hong Kong is the cheapest in Southeast Asia for branded goods,” Carolus continued.

The cheap prices and tax-free policy also attract foreigners to buy branded goods in Hong Kong. Indonesians are no exception. According to Carolus, the price difference alone can be used to buy a ticket to Hong Kong.

“Many Indonesians go to Hong Kong, they usually buy LV products, buy the same products like bags. Buying here (Hong Kong) is the same as buying in Singapore or Indonesia, but the price difference is enough to pay for a ticket to Hong Kong. So why not fly to Hong Kong with that price difference,” he said.

When Dream went around the mall area (not on the roadside), there were Indonesian people buying branded goods in a store, as heard from the Indonesian language they spoke.