Luckin Coffee’s entry into Hong Kong a sign of mainland Chinese brands’ growing dominance

Mainland Chinese brands are ramping up their presence in Hong Kong, using the city to test the waters before foraying overseas, according to analysts.

Luckin recently opened its first branch at Mira Place in Tsim Sha Tsui, marking its entry into a market that is currently dominated by Starbucks, the US coffee chain. The Chinese coffee chain is set to open another outlet in Tseung Kwan O, according to local media reports.

“We foresee mainland brands continuing their interest to expand to Hong Kong, Southeast Asia and even European markets,” said Lawrence Wan, head of advisory and transaction services for retail at CBRE Hong Kong.

“Hong Kong would be an interesting and strategic market for these mainland brands, especially when high street shop rents have fallen significantly from a peak over the past few years.”

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Shop occupancy recovers in Hong Kong, but vacant stores still visible across the city

Shop occupancy recovers in Hong Kong, but vacant stores still visible across the city