A price war erupted yesterday between Hong Kong's two biggest drug store chains, with Mannings undercutting Watsons' prices by 20 per cent after its rivals had announced a sweeping retail strategy promising a 'lowest-price guarantee'.
Watsons had said it was offering the lowest prices on more than 1,400 items in an attempt to restore consumer confidence.
But a tube of Nivea sunblock lotion, costing $77.90 in Watsons, is now being offered at $62 in Mannings.
As part of its promotion, Watsons said it would give a 'double-the-difference' refund if any customer found one of its guaranteed lowest-price products was offered more cheaply anywhere else.
Caroline Mak, Mannings' chief executive officer for Greater China, said the chain would also be launching a one-day promotion next week, giving away gifts worth $2.5 million.
But she denied the moves were in response to its rival's pricing strategy.