Models attend the soft opening of the CTF HOKO mall in Qianhai on Monday. Photo: Edward Wong
Source:
https://scmp.com/news/china/money-wealth/article/1888175/jeweller-chow-tai-fook-bets-mainlanders-will-flock-new-hk Money & Wealth
Jeweller Chow Tai Fook bets mainland Chinese will flock to new 'Hong Kong mall' - in Shenzhen
Chow Tai Fook hopes to lure mainlanders away from cross-border shopping by transplanting the whole experience to a Shenzhen complex
Models attend the soft opening of the CTF HOKO mall in Qianhai on Monday. Photos: Edward Wong
A new mall in Shenzhen's free-trade zone is betting Hong Kong products will attract shoppers who would otherwise head over the border for purchases.
But at its soft opening in Qianhai on Monday some patrons said prices were a bit high, although they probably would make fewer trips to Hong Kong.
Four - all devoted to food - are to open soon.
CTF HOKO mall is run by Chow Tai Fook Enterprises (CTF), which has invested 350 million yuan (HK$423 million), and its namesake jewellery business occupies a prominent spot, as do cosmetics retailer Sasa and clothing chain G2000.
Buyers seemed most interested in food, personal care products, cosmetics and baby products like milk powder and diapers.
A 60-year-old woman surnamed Luo, who travelled four hours from Shaoguan in Guangdong for the opening, said she was satisfied overall.
"I don't think I will go to Hong Kong anymore. Instead, I will shop directly from here. It can spare me hours of waiting at the border crossing," Luo said. She used to cross over for day trips two or three times a year to buy food, cosmetics and clothes.
A 900 gram can of the Holland-made Friso First Steps baby formula – for infants six to 12 months – retails for 242 yuan, while Hong Kong pharmacies charge HK$230. Photo: Edward Wong
"A bag I wanted to buy is being sold for 7,000 yuan here, and its price back in Hong Kong is HK$7,000. It's about 20 per cent more expensive," Liu said.
The mall sells items in two ways - the traditional "grab, pay and go" and also through its own website and smartphone app. Shops can store imported goods in bonded warehouses, and samples are displayed in the store.
A customer scans the QR code with their phone, which takes them to the ordering process.
These items are exempted from the usual tariffs, value-added tax and consumption tax. Instead, buyers pay a "postal tax," which is usually lower.
Chow Tai Fook Enterprises has invested 350 million yuan in the development. Photo: Edward Wong
But most shoppers seemed more interested in traditional offline shopping. Liu was disappointed when told she could not bring the actual items home as she shopped in a clothing store. "The goods were only for display, not for sale. They told me I have to buy them online and they are not selling any on the spot."
A 29-year-old woman, surnamed Zhang, bought some skincare products from Sasa through the online platform. "The shop assistant told me I have to wait for three to seven days for them to be delivered, which is a bit too long," she said.