In the context of the decline in the number of tourists on the mainland and the decline in sales, luxury brand Prada tried to renegotiate the rentals in Hongkong. Carlo Mazzi, group chairman, announced the news on Thursday.

However, the group will not close its stores. China accounts for 1/5 of the group's total sales.

The Asia Pacific region is Prada's largest market, accounting for 36% of its sales.

China alone has accounted for 22% of the total sales volume, reaching 774 million euros.

As China's demand is expected to continue to grow, Prada chose Hongkong as a stepping stone to China in 2011. At the same time, it realized financing for debt repayment and the high cost of opening new stores around the world.

In the four years, the company opened about 260 branches.

But China's economic slowdown is now a big headache for major brands.

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Quarterly sales fell by 17% at the end of April, at a fixed exchange rate, and the group's profit margins also declined in the past few quarters.

The slowdown has affected the two major consumer cities in Hongkong and Macao. Many brands have reduced the number of local stores.

Group president

To the Reuters, "like our competitors, we are trying to renegotiate the rentals of stores in Hongkong and Macao.

But the owners are not too receptive, they are more tough.

Carlo Mazzi said, "we reduce our store opening plan in Hongkong and Macao.

But although the sales volume is reduced, our stores still record profits.

We have no plan to close the stores in China.

He finally said, "not long ago, China has been regarded as a paradise, but until now, it is only a market worthy of attention.

We think the market will improve again, but how long it will last is still hard to come to a conclusion.