Luxury brands such as Alexander McQueen, Gucci, Ralph Lauren and Giorgio Armani are enrolling in cash voucher schemes that Hong Kong malls are rolling out in a bid to bring shoppers back to their physical stores.
In the city’s Harbour City mall, shoppers can receive a $13 voucher for every $129 they spend and two $64 coupons for every $770 spent at participating stores.
Mall operators’ efforts to launch the cash voucher program respond to the decline in foot traffic, which has been impacted by not just social distancing mandates but also border restrictions and socio-political unrest in Hong Kong. The island was previously heavily reliant on Chinese tourists for sales at luxury stores. However, the impact of the pandemic combined with the pro-democracy protests in 2019 has led to a long dry spell for luxury brands, prompting players such as Prada to close their flagship store.
Some of the other high-end mall operators that are also turning to cash voucher schemes include Times Square, Pacific Place, IFC Mall and K11 Musea, Business of Fashion reported.
While it is unclear whether luxury brands at each of these locations have to bear the cost of the cashback program, it is reported that the ones located at Harbour City and Times Square have to absorb two-thirds of the value of each voucher.