New entrants steady Hong Kong retail property sector in absence of luxury giants
Newcomers from across Asia and Europe take advantage of cheaper rents while big-ticket brands delay major commitments
Taiwanese brand Nap Tea drew long lines when it opened its first Hong Kong store in Mong Kok in February. The chain has since expanded aggressively, opening its ninth outlet in the city this month.
“What truly surprised us was our breakthrough in quickly building a loyal base of repeat customers,” said co-founder Dan Lin. “Rent is indeed a major challenge in the Hong Kong market, but it proves that as long as the product is strong enough, it can overcome the pressure of high costs.”
These operators were among more than 90 non-local brands that opened in Hong Kong in the first three quarters of the year, according to property consultancy Cushman & Wakefield. With 57 per cent of those new brands coming from the food and beverage (F&B) sector, the surge was driven primarily by tenants seeking lower rents rather than luxury labels staging a comeback, Cushman added.