Taiwanese brand Nap Tea drew long lines when it opened its first Hong Kong store in Mong Kok in February. The chain has since expanded aggressively, opening its ninth outlet in the city this month.
“What truly surprised us was our breakthrough in quickly building a loyal base of repeat customers,” said co-founder Dan Lin. “Rent is indeed a major challenge in the Hong Kong market, but it proves that as long as the product is strong enough, it can overcome the pressure of high costs.”
Co-founded by Taiwanese YouTuber Crown Du, Nap Tea reflects the shape of Hong Kong’s emerging retail revival. Instead of Chanel or Gucci unveiling multimillion-dollar flagship stores, fried-chicken counters, bubble-tea brands and grab-and-go snack chains are securing space and attracting foot traffic.
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Foreign brands are a significant part of the trend. Singapore’s Bacha Coffee opened a highly anticipated flagship shop in Tsim Sha Tsui in May. Japan’s discount lifestyle chain 3Coins launched at Hysan Place in Causeway Bay in July. US sportswear label Wilson and Korean beauty retailer Fwee also debuted this year.
Yet the momentum – and most of the excitement – is concentrated among nimble food operators. New entrants range from mainland drinks brand Bingxue and fried-chicken chain Zhengxin to Singaporean chicken-pot restaurant Boon Tong Kee and Korean tteokbokki chain Young Dabang.
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These operators were among more than 90 non-local brands that opened in Hong Kong in the first three quarters of the year, according to property consultancy Cushman & Wakefield. With 57 per cent of those new brands coming from the food and beverage (F&B) sector, the surge was driven primarily by tenants seeking lower rents rather than luxury labels staging a comeback, Cushman added.