Hong Kong retailers need to change their ways to stop sales slide, industry experts say
- Retail sales in Hong Kong have slumped by double-digit figures for two months in a row as consumers change the way they shop
Sliding sales figures are a wake-up call for Hong Kong retailers to reinvent themselves to win back shoppers amid changes in consumption patterns, especially residents who choose to spend across the border, industry chiefs have said.
Alarm bells rang on Tuesday when official statistics showed retail sales had slumped by double-digit figures for two months in a row, falling 11.5 per cent year on year in May after a 14.7 per cent decline in April.
Industry leaders and a lawmaker on Wednesday urged retailers to change the way they operated, including by strengthening online sales channels and revamping business models, as visitors preferred experiences over splurging on consumer goods while Hongkongers went to mainland China for cheaper and better service.
Some called for improvements in service quality as the first step.
“Retail businesses need some huge reforms, as they are no longer competing with the shop next to them, but various sectors within the Greater Bay Area,” said Wingco Lo Kam-wing, president of the Chinese Manufacturers’ Association of Hong Kong.
“Now is a period of adjustment, and Hong Kong’s retail industry needs to think of new breakthroughs.”