Modern watch purchases...
Well you cant usually go wrong with buying new in Hong Kong as there is almost always some discount to be had even on the already tax free prices. Whilst this discount seems to be slowly eroding over time, typically Rolex and Tudor is 5% (was 8% in 2008 and 10% in 2007), Omega 10%, Breitling 25% (30% in 2009) etc etc.
The Boutique shops wont discount at all (like any Boutique in any city in the world) so look for a normal AD. Limited and hard to find watches are usually not discounted at all, so don’t expect to get a discount on something like a stainless steel Daytona, in fact we would be very surprised if you even found one at an AD.
However saying that you can usually find ‘hard to find’ or ‘wait list only’ watches in HK that you might not see in other countries, examples of those are Rolex limited production watches, IWC Big Pilot and of course models so far up the ranges of GO, Patek and AP that your sticky fingers would have to be sanitised before handling them back home, and that’s only if your AD deigned to let you into the shop!
One thing we have noticed is that locals and those with strong haggling skills can improve on the standard discounts, but many (most!) ADs will stick to the standard discount rules as outlined above.