Hong Kong retailers are cutting prices and formulating other strategies to cope with slower growth amid changes in the consumption behavior of mainlanders and a shift in consumer base, the Hong Kong Economic Journal reported on Monday.
With a view to reducing their reliance on mainland customers, Luk Fook Holdings International Ltd. (00590.HK) is planning to open more stores in non-tourist districts such as Yuen Long, Sha Tin and Sheung Shui to attract more local consumers.
Sa Sa International Holdings Ltd. (00178.HK), with 70 percent of its sales coming from mainlanders, has slashed prices by as much as 60 percent while opening concept stores and introducing more new products from South Korea, the report said.
Chow Sang Sang Holdings International Ltd. (00116.HK) has also cut the prices of certain brands by 10 to 20 percent, while giving discounts for registered members.
Dickson Concepts International Ltd. (00113.HK), operator of Harvey Nichols and Dickson Watch & Jewellery, has reduced the prices of its apparel since local sales began to deteriorate in May, chairman Dickson Poon said, adding that the company is also considering new strategies to lure more local customers.
Stelux Holdings International Ltd. (00084.HK), which sells watches and glasses under the brands City Chain and Optical 88, is consolidating its network to focus on the profitability of stores, said chief financial officer Wallace Kwan Chi-kin.
Chow Tai Fook Jewellery Group Ltd. (01929.HK) will also give more emphasis on the performance and rental costs of a store, while reviewing existing rental contracts, said managing director Kent Wong Siu-kee.
Retail sales in Hong Kong have dropped 1.3 percent in the first six months from a year earlier, the report said.
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