I Explored 3COINS in Japan—Now It’s Set to Launch in Hong Kong as Part of a Rapid Japanese Retail Comeback

3COINS in Hong Kong signals retail is on the rebound, at least at the bottom of the value/price chain, and it isn’t just a one-off; many more are coming.

Japanese brands are entering Hong Kong fast, going head-to-head with local players as landlords are showing and actively supporting these entries: Osaka-based 3COINS opening in Causeway Bay is but one sign of the shifting retail landscape.

We’ve already seen Don Don Donki thrive, and their stores are packed. Muji has become a household name in Hong Kong and JLL recently reported (see link) that nearly 25% of retail leasing activity was driven by Japanese brands during a recent period.

Landlords seem willing to support a wider variety of international offerings, be it household goods, clothing or food ( get it all at MUJI ! ), as our mega malls show the traditional HK duopoly isn’t quite as dominant now.

These new entrants often compete in the value segment, but they bring vibrancy; though at the same time, many Hongkongers still head to Shenzhen on weekends, filling car boots with food and supplies instead of shopping locally.

Then online shopping/delivery across Mid-Levels and our dense residential districts has bitten hard, it’s no wonder local neighbourhood retail is struggling at the hyper-local scale; so in those areas, the picture remains cloudy.

And what are Hong Kong’s new retail and nightlife “cores”? Where are the new hotspots? It’s hard to say because they are not really being built up. The government pushes for more inbound tourism, but outbound travel and overseas consumer spending by locals are still running high. We need more attractions, more hubs and more action at street level, more offerings that are as good as, if not better than, can be found outside Hong Kong.

Japan gives a preview of what’s to come in Hong Kong from 24-hour, pay-as-you-go gyms (a huge trend in Japan) to hyperlocal food concepts from mega-chains like Yoshinoya. Combine food delivery, the ramen boom and these new entrants; perhaps staying in Hong Kong will soon feel more appealing : if it becomes more interesting and more affordable.

There is now a slew of exciting niche market players, from small bread and cake shops to Thai food, steak restaurants and affordable pizzas, from small wine bars and craft beer to cheaper retail and new-format supermarkets, new life is coming to what were vacant or underused retail spaces; vacated by tired concepts.

Let’s hope the new crop succeed.

If you need specific input regarding a strategic Hong Kong challenge or related legal matters in the HKSAR you can always DM me and check out my profile at https://www.ajhalkes.com

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