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

The United States luxury handbag maker Coach Inc opened its four-story flagship store in the heart of Hong Kong's Central district in June 2008, with a celebrity-studded, champagne-fueled party.

In August, the company quietly terminated its HK$5.6 million ($723,000) per month lease and Adidas is moving in - paying 23 percent less in rent, according to Colliers International Group Inc. This is not an isolated case.