Valentine’s Day in Hong Kong means business is blooming for the flower market – but restaurants are feeling the squeeze
- With rising costs and long-term economic uncertainty, some buyers are tightening their belts
- Businesses and analysts say a major drop-off in trade is unlikely
On Mong Kok’s Flower Market Road, February is peak season. After a Lunar New Year rush, bouquets of red roses were all the rage on Wednesday as Valentine’s Day neared.
Johnny Ng Chi-yuen was shopping with his son, Carson. The unemployed father, currently a househusband, decided to specially wrap a bouquet for his wife.
“It’s cheaper. I bought the flowers for about HK$240,” he said, holding roses, baby’s-breath and other filler flowers.
He said the cost was similar to his budget in previous years, saying that buying a bouquet ready-arranged from a shop would have cost him more than HK$500.
He said the family needed to tighten its belt this Valentine’s Day, which falls on Thursday, and he planned to spend 10 to 20 per cent less than usual on the special meal, a home-cooked steak.
“A few years ago, HK$100 could buy three dishes. But now we can only buy two,” he said.
Ng was not the only shopper mindful of a budget during the romantic season. The city’s retail sector is braced for a sluggish 2019, with uncertainty over how the US-China trade war will affect the local economy.
Civil servant Kenneth Au, 40, said he spent less than HK$500 on a bouquet of flowers, like last year. But he had looked in three to four shops to find one offering good value of money.
“Products are getting more expensive; so is the cost of living. I have to shop around,” he said.
Jocelyn Ng Yee-ching, brand manager at Brighten Floriculture, on the market, recalled one customer walking up and down the street three times before buying flowers at her shop.
Still, she expected Valentine’s Day revenue to grow 30 per cent on last year, partly because the day fell on a weekday, with more customers paying for delivery.
She said the company had about 400 orders as of Wednesday, double the number at the same stage last year, with an average cost of HK$1,600.
It’s just a one-day festival. It isn’t worse to an extent that people won’t celebrate it
But the other sector which banks on couples spending big for Valentine’s Day – restaurants – expected business to dip.
Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, said that by two days before Valentine’s Day places were usually fully booked. But by Tuesday most places were only 70 to 80 per cent full.
“It seems people spent more money overseas during Lunar New Year and therefore cut their expenses in Hong Kong,” he said.
Mariana Kou Chung-yin, head of China education and Hong Kong consumer research for CLSA, an investment group, saw little chance of either a major spending drop-off or impressive growth. She said poor recent purchasing sentiment had been remedied by a stock market recovery.
“It’s just a one-day festival.” she said.
“It isn’t worse to an extent that people won’t celebrate it.”
And that was proving to be the case for other businesses affected by the holiday.
Rebecca Lee, marketing director at custom watch company EONIQ predicted revenue would grow 20 per cent year on year.
And Katie Yeung, owner of Myosotis Flower, said more people had applied for their gift-making workshops than last year. She said the most popular product was personalised neon lights.
Back at the flower market, soccer player Travis Major, 28, was spending big on his girlfriend. He said that last year he forked out HK$3,000 for Valentine’s Day chocolates, flowers, drinks and perfume, and that he might spend HK$10,000 this year.
“She’s special,” he said.
