Hello Kitty, farewell Rolex, as HK shoppers go downmarket

Hong Kong

IN Hong Kong, fancy purses are out, sneakers are in.

US luxury handbag maker Coach Inc opened its four-story flagship store in the heart of Hong Kong's Central district to much fanfare in June 2008, with a celebrity-studded, champagne-fuelled party. In August, the company quietly terminated its HK$5.6 million (S$1 million) per month lease and Adidas is moving in - paying 23 per cent less in rent, according to Colliers International Group Inc.

This is not an isolated case. Russell Street in Causeway Bay, which boasted the most expensive shop rents in the world until New York's Fifth Avenue overtook it a year ago, is undergoing a major transformation. A location formerly rented by Emperor Watch & Jewelry Ltd that sold diamond-studded Cartier watches is now home to discount cosmet…