Can mainland China bargain-bin grocery stores push out Hong Kong’s dominant chains?

Since mainland Chinese discount grocery-chain Hotmaxx debuted in Hong Kong in September, it has lured hordes of customers by offering everyday items at prices well below the typical market rate.

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While a can of Coca-Cola would normally cost between HK$9 (US$1.20) and HK$11 in the city, Hotmaxx sells it for only HK$3. It also has bottles of water for HK$2.5, body wash for HK$28 and even a 375ml bottle of whiskey for HK$25.

At a time when Hong Kong retail sales are in a prolonged slump, in part due to the rise of consumers heading north to the mainland to shop, many have joked that Hotmaxx has brought “Shenzhen prices” to the infamously expensive city.

Hotmaxx first opened in Shanghai in 2020, touting a business model that quickly drew attention by targeting low and middle-income earners with near-expired food and drink items at bargain prices.

Its overnight success allowed it to expand aggressively to more than 600 branches across the country, and it plans to open over 5,000 more in the coming years.

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With four branches in Kwai Fong, Tai Kok Tsui, Tsuen Wan and Sheung Shui, Hotmaxx has quickly garnered its share of fans among the grass roots and elderly.

  

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