• May 18, 2025
  • Posted by: Regent Harbor Team
  • Category: Business
Mainland Chinese retailers take advantage of falling rents to expand Hong Kong presence

Hong Kong’s Retail Evolution: Enter the Mainland Giants

Ah, Hong Kong. A city that never sleeps and now has mainland Chinese retailers making moves on its real estate. With falling rents, they’re seizing the opportunity to cater to savvy shoppers. Analysts suggest Hong Kong might just be their springboard to the world.

The Surge of Mainland Brands

Mainland brands in Hong Kong are on the rise! This year, they make up 35% of newcomers, up from last year’s 29%, according to Lawrence Wan, head of advisory and transaction services for retail at CBRE Hong Kong. It’s all about market accessibility, folks. Hong Kong speaks their language—both literally and figuratively.

Why Hong Kong?

“For mainland brands, Hong Kong is a more easily accessible market in terms of language and familiarity,” Wan mentioned. This city, with its multicultural vibe, serves as an excellent testing ground for their products. Plus, it’s a stepping stone to markets in Southeast Asia and beyond, especially with the home front showing signs of retail fatigue.

Making a Statement

Richard Lin, chief consumer analyst at SPDB International, nails it: “Mainland retailers are not looking to make a lot of money in Hong Kong; it’s more about having a presence in the city.” It’s all about the message to the world—“we’re expanding.”

The mainland discount grocery chain HotMaxx debuted in the city in September last year. Photo: Connor Mycroft

A Broader Strategy

Analysts see Hong Kong as just the beginning. With weakening consumption at home, these brands are eyeing overseas markets like Southeast Asia. Hong Kong acts as their launch pad, allowing them to dip their toes into international waters before diving in.

Advantages They Need

These retailers are taking advantage of more than just location. Falling rents make it a financially sound choice, attracting value-seeking consumers who are all about the bargains.

What the Future Holds

Stay tuned. As Hong Kong plays host to more mainland retailers, its streets are becoming vibrant with new ventures and experiences. The city isn’t just a beacon for local shoppers anymore—it’s becoming a hub for international retail growth.

With this dynamic shift, who knows what’s next for the retail scene in Hong Kong? Only time will tell.