NewHong Kong jeweller Chow Tai Fook invited to open second shopping mall in Shanghai Free Trade Zone

Two months after jeweller Chow Tai Fook set up its first shopping mall selling Hong Kong products in the Qianhai free-trade zone, it was offered opportunities by several mainland cities, including Shanghai, inviting it to build such malls in their free-trade zones, a senior management official at the company said.

Chan Sai-Cheong, Executive Director of Chow Tai Fook and who overlooks the company’s mainland operation, told the Post in a phone interview that “ [officials of] several free-trade zones of mainland cities have approached us, asking us to open a shopping mall there.”

This fulfilled the wish made by Adrian Cheng Chi-Kong, the third-generation heir of billionaire Cheng Yu-tung’s family, at the opening ceremony of its Qianhai shopping mall - HOKO, when he said if Shanghai offered an opportunity, he will consider opening such malls in their free-trade zone.

Unlike other traditional shopping malls, CTF’s HOKO mall provides two ways for customers to check out – the traditional “grab pay and go” model or and the online channel, under which customers order through a smartphone app and have the goods delivered to their home.

Hong Kong retailers, such as Sasa, Chow Tai Fook, ISA, G2000 are among the 21 tenants.

Retail prices of the online channel are typically cheaper than the traditional channel, as the Chinese government only applies a special “postal tax” for imported goods brought from the so-called cross-border e-commerce channel.

Otherwise, customers need to pay three types of taxes if they purchase imported goods from traditional channels, which are usually higher.