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The trend of bandh is continuously increasing in Hong Kong. The number of store closures rose to at least 70 in October. Taiwanese brands such as Qingyu and Dayuanzi have withdrawn brands one after another, indicating that higher costs and consumption outflows are affecting the retail market.
Hong Kong people go north to spend money,hong kong A wave of bankruptcies continues in Hong Kong amid high operating costs. Hong Kong media, citing “Real Estate Station” and market data, said that at least 70 stores closed in Hong Kong in October, a remarkable increase of about 75% from about 40 stores the previous month. Among them, Taiwanese handmade brands Qingyu and Dayuanzi also completely withdrew from Hong Kong in October.
Hong Kong Economic Daily reported that the Hung Hom branch of Taiwan’s handheld drink brand “Qingyu” was officially closed on October 25 due to the imminent end of the Hong Kong general agent’s Hong Kong business and the expiration of the lease. Kingyu was introduced to Taichung by a Hong Kong store owner in 2015. It opened its first store in Mong Kok as a franchise and has been operating in Hong Kong for about 11 years.
Another Taiwanese tea brand “Dayuanzi” has also completely withdrawn from Hong Kong. The brand has been in Hong Kong for four years, and the last store in Tai Wai Fang closed on October 12.
Operating costs in Hong Kong are unaffordable even for Chinese companies. China’s affordable tea beverage company “Mixue Ice City” closed its first Hong Kong store in Mong Kok Bank Center after the lease expired. Hong Kong local brand “Tang Xiaoer” occupied the store with a monthly rent of HK$190,000 (about US$24,000).
The first Hong Kong store of another Chinese chain noodles brand, “Hefu La Mian”, has also ceased operations. The store was leased in early 2024 at a monthly lease of HK$300,000 (about US$38,000), with a construction area of 1,570 square feet and a lease rate of NT$191 per square foot. However, it is less than three years away from opening.
This wave of “closure” in Hong Kong has been going on for some time and is mainly caused by many factors, including Hong Kong people “going north to consume”, high operating costs and financial pressure, changes in young people’s consumption patterns, and foreign brands eventually withdrawing stores after actuarial costs.
Summary FAQ
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According to Hong Kong media and market data, at least 70 stores have closed in Hong Kong in October, a remarkable increase of nearly 75% from about 40 stores last month, indicating that the trend of local closures is still accelerating.
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Qingyu’s Hung Hom branch closed on 25 October due to the upcoming end of its Hong Kong general agent business and lease expiration. Dayuanzi’s last Tai Wai Square store in Hong Kong closed on 12 October after four years of operation.
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The report pointed out that the consumption trend of Hong Kong people moving north, high operating costs, financial pressure, and changes in the consumption patterns of young people have made it difficult for foreign brands to maintain profits, and even Chinese affordable tea drinks and pasta brands have withdrawn from the market.
