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To prepare for her wedding ceremony, Yvonne Pu went to Hong Kong with her husband and did some "crazy shopping".
"I spent almost 20,000 yuan (US$2,420) there and purchased several pieces of namebrand clothes and cosmetics to make myself into a beautiful bride," she said.
Though this cost a lot of money, Pu still thought it was worth of it. "The price of first-class brands in Hong Kong is about 15 to 20 per cent lower than in Shanghai, I think it was very worthwhile shopping there," she said.
Actually, Pu was not the most crazy shopping woman from the Chinese mainland in the SAR. Pu said her friend went to shop in Hong Kong twice every year to buy spring/summer and fall/winter collections because of the latest styles and good prices there.
Telling figures
More and more people from the mainland have the same interest as the women mentioned above, which can be seen in the soaring figures from the Hong Kong Tourism Board.
The statistics show the number of Shanghai people shopping in Hong Kong has risen 20 to 30 per cent higher since last year.
In 2001, a total of 4.4 million people from the Chinese mainland visited Hong Kong, with the average consumption hitting HK$5,169 per head. Mainland visitors replaced Americans as the biggest consumers for the first time.
The average spending of a 200-person group organized by China Travel Service Shanghai last year hit 40,000 yuan (US$4,840).
According to statistics from local travel agencies, the Christmas period from mid-December to January is always the peak time for local people to go shopping in Hong Kong.
"Generally speaking, during the peak time we have a travel group to Hong Kong everyday," said an official surnamed Ou with the China International Travel Service (Shanghai) (CITS).
Nowadays a group of "only" 100 people can be considered a small group. Groups of hundreds of people are no longer uncommon.
When the limit on the number of mainland people visiting Hong Kong was cancelled at the beginning of this year, the number of travel service agencies with permits to run routes to Hong Kong took off, climbing from the original four to more than 70 across the country.
"The competition among travel agencies also brings low price for the route," Ou said. The price has decreased from over 5,000 yuan (US$605) to only about 3,000 yuan.
"Affordable prices and the attractive shopping heaven has resulted in booming tourism for Hong Kong," Ou said.
The best time to go
"Actually, the scenic spots in Hong Kong can't compete with the mainland at all. What really attracts us is the shopping environment there," Pu said. To most young women, the latest styles and big discounts are very attractive.
Generally speaking, the period from Christmas Day to January is the best opportunity for shopping travel to Hong Kong because of the temporary discounts.
Big discounts cut as much as 50 per cent off the prices of some first-class brands of clothes, jewellery and watches. You may find an Armani belt reduced to HK$100, or Gucci's perfume Envy cut to HK$120 while in Shanghai it costs over 400 yuan (US$48).
The attractive prices make most travellers go directly to the shopping centre as soon as they have separated from their luggage.
To meet such demand, most travel services arrange three-day or five-day shopping tours, especially for those without interest in visiting scenic spots.
"The price for such a tour is about 500 yuan (US$60) lower than for ordinary ones, but we repeatedly tell our consumers it is a special price for shopping," Ou said.
Previously, some consumers complained about the travel service providing insufficient scenic visiting but too much shopping.
Now with the presentation of dedicated shopping trips, people are asked to visit one store every day. "If you don't want to buy anything, just go there to have a look because we have contracts with the stores to bring enough customers," Ou said.
With such low prices for the shopping tour, travel services mainly make their profits by commissions received from consumption in designated shops.
Economic boosters
With the comparatively sluggish economy in recent years, Hong Kong now sees mainland consumers playing a key role in stimulating local consumption.
With no limit on numbers and a steady increase in travel agencies providing such tours, the potential of the mainland market for Hong Kong is seen as "very huge" according to Dong Xuechun, from the Hong Kong Tourism Board.
Insiders said mainland retailing can't meet the demand of certain group of people who pursue upmarket articles but have limited money. Hong Kong, a free port which provides such imported articles with less tax, meets the demand of this group of people, fueling for the travel boom to Hong Kong.
"As a worry to local retailers and government, rising consumption in other places certainly impacts the local market to some extent," said Qi Xiaozhai, vice director of the Shanghai Commercial Information Centre.
"Since Hong Kong has the advantage of price and style, Shanghai should catch up in those fields and find solutions in order to reduce the emigration of local consumer spending."
(Shanghai Star December 31, 2002)
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