Hong Kong’s embattled retail landlords bet on their mainland malls for Christmas cheer, wooing shoppers with lavish festive displays

Facing a dismal Christmas shopping period at home, some Hong Kong developers are trying to woo big spenders to their upmarket malls in mainland China with extravagant festive displays

Mainland Chinese retail sales grew 5 per cent in November from a year earlier, marking the fourth successive month of expansion

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An modern take on a Christmas tree towers over visitors outside a Shanghai shopping mall. Photo: Bloomberg

Published: 10:00am, 24 Dec 2020Updated: 10:00am, 24 Dec 2020

Hong Kong developers, facing a dismal Christmas shopping period at home, have pulled out all the stops to woo big spenders to their upmarket malls in mainland China with huge, vibrant festive displays and decorations.

While their shopping centres in cities like Shanghai are decked out with enormous, colourful Christmas trees, bright lights and themed entertainment – much of it sponsored by famous luxury brands – the picture is rather more subdued in Hong Kong where a fourth wave of the deadly coronavirus is derailing spending during the holiday period.

“These landlords have to plough more of their resources into China where consumers can come out freely to spend to shore up sales, and compensate for whatever they are losing back home. It does not make sense to roll out elaborate displays in Hong Kong where foot traffic is really low,” said Michael Cheng, PwC’s Asia-Pacific consumer markets leader.

Retail has made a strong recovery in mainland China, where initially strict lockdown measures have been relaxed. It is expected to be the only G20 country to record economic growth this year.

With Covid-19 infections largely under control, and a captive audience of domestic consumers unable to travel overseas, retail landlords are keen to attract Christmas shoppers.

Plaza 66 in Shanghai’s bustling West Nanjing Road has spared no expense this year with a 13.5-metre tall Christmas tree decorated with ornamental gift boxes in classic red and white atop of a spacious photobooth in the shape of Cartier’s iconic red jewellery box. On the other side of the mall’s outdoor plaza stands an eye-catching brass tree decked out with illuminated baubles and ribbons, designed by fashion house Dior.

The shopping centre is operated by Hong Kong’s Hang Lung Properties.

“We put in more in the Christmas campaign in China each year, and this year is no exception,” said Janice Cheung, general manager of Plaza 66. “We’ve seen much stronger recovery of consumption here than anywhere else.