Lunar New Year shopping: Hong Kong and Shenzhen battle for dollars and deals
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Lunar New Year shopping: Hong Kong and Shenzhen battle for dollars and deals

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Shoppers check Lunar New Year products at a wholesale market in Shenzhen, China. (Photo: South China Morning Post)
Shoppers check Lunar New Year products at a wholesale market in Shenzhen, China. (Photo: South China Morning Post)

HONG KONG - A cross-border battle is under way between retailers looking to attract Hong Kongers, as mainland Chinese operators offer free coaches to Shenzhen in the run-up to Lunar New Year, while shopping centres in the financial hub splash out to boost sales.

Stores are not the only ones trying to grab the attention of shoppers amid a weakened economic environment on both sides of the border. Tour agencies are also hunting for dollars, combining leisure travel with shopping.

Some retailers are going to great lengths.

Shanghai-based Freshippo, a grocery chain operated by Chinese e-commerce giant Alibaba, which owns the South China Morning Post, is providing free shuttle buses for Hong Kongers to reach its Shenzhen branches for Lunar New Year shopping on Jan 11, 12, 18 and 19.

One of the services will take shoppers directly from Sheung Shui to its Nanshan store.

The first day of Lunar New Year is Jan 29.

Wang Hua, Freshippo's head of operations in Shenzhen, said the initiative was popular with many Hong Kongers.

"Last weekend, I met a consumer who did some calculations. The round-trip subway fare from Sheung Shui to Sungang in Shenzhen costs more than 70 yuan [330 baht]. By taking our shuttle buses, the saved transport costs allowed him to buy two boxes of Dandong strawberries," Wang said.

Many Hong Kongers also chose to shop for Lunar New Year gifts in Shenzhen instead of locally.

Cindy Kam Chui-ying ditched her annual tradition of purchasing dried seafood, snacks and gifts for the holiday in the city, and instead went for a shopping spree with three friends at a members-only grocery warehouse in Shenzhen, spending about HK$6,000 (26,500 baht).

The 64-year-old retiree was among hundreds of bargain hunters enjoying some weekday shopping at Sam's Club in Futian.

She finished with two bulging suitcases of Lunar New Year staples, including confectionery, mushrooms, dried scallops, Jinhau dry-cured ham, Chinese preserved sausage and more, which she said were for friends and relatives.

"If I buy these items in Hong Kong for Lunar New Year gifts, it could cost over HK$10,000 and I need to visit multiple places," Kam said. "Here, I can purchase everything at once in elegantly boxed packaging, which feels more dignified than the transparent bagged mushroom or sausage in Hong Kong."

At a wholesale market in Luohu district, 35-year-old store owner Zhang Xiaoli said Hong Kongers accounted for 60% of her business since mid-December.

"Hong Kong people are savvy with the rules of the game, understanding prices are likely to be lower in this building filled with competition," Zhang said. "They are adept at bargaining even for small-ticket items. But for us, we aim at a low profit margin with high turnover."

Several Hong Kong tour operators, including Wing On Travel and Sunflower Travel, offer two-day Lunar New Year shopping tour groups to Shenzhen, Zhongshan and Dongguan ranging from HK$468 to HK$600 per person.

Timothy Chui Ting-pong, director of tour operator Family Travel, said more than 100 Hong Kongers filled four coaches on Jan 11 and 12, headed for Dongguan.

They spent HK$500 each on average for Lunar New Year goods, while also enjoying sightseeing on the trip.

"This HK$600 tour package combines travel and shopping. Participants will have meals and explore Qingyuan on the first day. We cover transport, meals and accommodation. Participants can enjoy a weekend getaway with sightseeing and shopping for what they need for the Lunar New Year," Chui said.

Hong Kong malls are also unleashing offers to entice mainland and local shoppers.

Kwun Tong shopping centre APM said it had raised its promotional efforts by 10% to about HK$9 million during the Lunar New Year period, compared with the same time last year. From the investment, 40% will be earmarked for various discounts and rewards, with some specifically targeting mainland visitors.

It predicted its efforts would lead to double-digit growth in footfall from Jan 17 to Feb 16 and an increase in business of about 10% compared with the same period last year.

"Local consumers are willing to spend but look for good prices in the market. The mall's incentive programmes are an effective drive for engaging festive impulse spending," said Yan Fung Wing-Yan, an assistant general manager in the leasing department of Sun Hung Kai Real Estate Agency.

Also targeting mainland spenders is Tmtplaza in Tuen Mun, which has been their top choice because of the proximity to the Shenzhen Bay control point.

The mall expects an 8% rise in footfall during the Lunar New Year period compared with last year through a combination of promotions, such as giving away smartphones, free cross-border coach tickets and coupon gift bags.

"Tmtplaza not only serves local residents, but it has also become an important shopping destination for mainland visitors with its complete set of cross-border transport arrangements," said Bella Chhoa, director of asset management at Sino Group.

"With the resumption of multi-entry permits and the approaching Lunar New Year, we have specially invested more money into our promotional efforts for tourists and launched a number of exciting privileges for consumers," she said.

Retail sector lawmaker Peter Shiu Ka-fai acknowledged the growing trend of Hong Kongers heading to the mainland to do their Lunar New Year shopping and urged retailers to improve their competitiveness.

"In reality, the prices and associated costs of Hong Kong products have always been high," Shiu admitted, but noted local products enjoyed several advantages, such as food safety.

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