I met up with my family friend, Double, last night to celebrate her coworker’s birthday. We discussed the popularity of a Japanese groceries and how it is growing in popularity here in Hong Kong. The two major grocery store chains are Wellcome ï¼ˆç»´åº·ï¼‰ and Park’N’Shop ï¼ˆç™¾ä½³è¶…å¸‚ï¼‰. Park’n’Shop is owned by Li Ka Shing has taken monopolizing strageties to control the groceries industry in Hong Kong. Double told me with a hint of bitterness about how they control the pricing of small stores, pressing them down from growing. For instance, smaller local shops were filed lawsuit or warned that their prices were too low.
On the rise is 759 é˜¿ä¿¡å±‹ which is a growing Japanese-based groceries store chain that specializes in selling Japanese and Western snacks, prepackaged noodles and pastas. The photo on the left were two products I bought from the store. Why do these two products price vary so greatly? Perhaps the appeal to convenience, packaging and origin country affect the supply and demand.
Their attempt to lead the grocery industry is a concern because this would drive away independent private sellers from earning a living. Furthermore, I believe that the products inventory is quite limiting, there are definitely room for improvement. For instance, most milk are not as fortified with B vitamins and minerals as the American milk are. Also they can be stored for a long time, meaning preservatives as used in this daily drink important to most people. Also they hold a strict regulation in the labeling of international products. Little diversification would result.
Their only worthy competitor is Wellcome. Smaller convenient stores such as Circle K and 7-11 do not have such a large inventory for competition.