Retailers beat a hasty retreat from mainland China due to consumption, competition woes
Hong Kong retailer Mannings will cease online operations from December 26 and close its physical stores after January 15
Mainland China’s highly competitive retail landscape has taken its toll on one of Hong Kong’s largest health and beauty chains, which has decided to exit the market.
Analysts said retailers across the board have found the going tough on the mainland, with a slowdown in consumer spending compounding matters.
Health and beauty chain Mannings said it would cease all online and offline retail operations on the mainland as it adjusts its strategy in the highly competitive market.
“It doesn’t matter whether it’s a local, international or Hong Kong retailer, everyone is struggling,” said Carrie Yu, the China consumer markets industry leader at PwC. “Some more than the others because they are trying to transform themselves from a bricks-and-mortar operation to an omni channel to remain profitable.”
China’s retail sales in November grew at 1.3 per cent from a year earlier, slowing for the sixth straight month, according to official data on Monday. It was the slowest pace since December 2022 as consumer confidence remains weak due to uncertainty about the economic outlook. The slowing consumption growth and the deepening property slump underscore the challenges Beijing faces in revitalising the economy.