VF Corp moves Asia operations centre from Hong Kong to Shanghai – more company to follow suit

The move reflects broader trends, with a growing number of brands either abandoning or reducing operational strongholds in Hong Kong for other hubs in the region. Once a luxury shopping mecca, Hong Kong was facing challenges even before the pandemic as a result of clashes with Beijing that sent its economy into free fall.

Last week, SCMP reported that luxury brands including Versace, Salvatore Ferragamo, Bulgari, Fendi, Givenchy and Celine reduced headcounts in their Hong Kong headquarters in 2020 to better focus on mainland offices; L’Oréal reportedly plans to downsize its regional office and shift to the mainland and Singapore.

A recent report by Savills indicated that the combined effects of Covid-19 and socio-political conflicts in Hong Kong will pressure more players to follow over the next couple of years, with Shanghai expected to reap the rewards.

VF Corp