Heytea snaps up Mong Kok space as mainland Chinese brands step up Hong Kong expansion
- New leases by mainland-based brands more than doubled in the first seven months of the year, according to JLL
Mainland Chinese brands have been the most aggressive non-local entrants into the Hong Kong retail market so far this year, as lower rents entice popular chains – especially sellers of food and drink – to take a shot at establishing themselves in the city.
New Hong Kong leases by mainland Chinese brands grew by 215 per cent year on year in the first seven months of 2024, according to JLL. Among the mainland brands that expanded, 56 per cent chose to locate in high streets, while others set up shops in prime shopping centres, the property consultancy added.
As for the origins of the non-local brands expanding in Hong Kong, mainland China accounted for 35 per cent, followed by Japan (29 per cent), Taiwan (15 per cent) and South Korea (13 per cent), JLL said.
“With the continual growth of inbound tourism, we anticipate more mainland brands will enter the Hong Kong market,” said Cathie Chung, senior director of research at JLL. “Recognising Hong Kong’s crucial role as a gateway, these brands are strategically leveraging the opportunity to expand their presence in the global market.”
Brands offering light refreshments such as noodles, tea drinks, desserts and Chinese food made up most new market entrants, she added.
The outlet will be located on Soy Street at one of the busiest junctions in the area, which is famous for its dense foot traffic. The store will occupy 979 sq ft with a monthly rent of HK$160,000 (US$20,527). It was formerly occupied by a shoe retailer, reports said. Heytea did not immediately reply to a request for comment.
