It is no coincidence that Hong Kong was able to establish itself as an international shopping destination. Without sales tax and tariffs on most goods, geographical proximity to China and other manufacturing Asian countries, decades of expertise in sourcing, trading and global logistics, large demand on products from all over the world and at every price ranges, all contribute to the relatively low consumer prices and high merchandise variety in Hong Kong. Bilingual with English and Chinese also help to cement Hong Kong as a popular shopping paradise for international tourists, receiving over 65 million visitors a year (2018). To talk about the development of the retail scene in Hong Kong, it is impossible not to touch upon Causeway Bay, the city’s prime shopping district. And to talk about the emergence of Causeway Bay, the story should trace back to 1960.
On 3rd of November 1960, thousands of spectators arrived at the intersection of Great George Street (記利佐治街) and Paterson Street (百德新街) to witness a 4000-guest cocktail party for the grand opening of Daimaru (大丸). Back then, little people would foresee that a new upscale Japanese department store in the warehouse dominated East Point (東角) would rapidly and dramatically transform the urban landscape into a vibrant shopping hub that we now call Causeway Bay. It is no exaggeration to say that the arrival of Daimaru was revolutionary to most Hongkongers: 400 staff trained in Japanese etiquette, row of staff bowing at entrance to greet customers, customer-first services, fixed prices, delivery services, split payments, trial eats, attractive displays, soft background music, facial care services, 60% products made in Japan, and even ladies dressed in kimono to serve customers for trial makeups. These may sound no big deal today, but in 1960 the innovative shopping experience has become an instant legend, drawing almost 100,000 customers on the second day of business. After Daimaru, the next two decades saw another three Japanese department stores arriving in Causeway Bay. In its heyday, over 500,000 sf of retail space in Causeway Bay were split among the four department stores: Daimaru (大丸 1960 – 1998), Matsuzakaya (松坂屋 1975 – 1998), Mitsukoshi (三越 1981 – 2006) and SOGO (崇光 1985 – present). From then on, Causeway Bay has become the most essential shopping district in Hong Kong nicknamed as Little Ginza. The Japanese department stores have become synonymous to fancy home appliances, trendy fashion, delightful toys and mouthwatering food-hall, just as Daimaru has become synonymous to Causeway Bay, where public minibuses designated to the area would simply put Daimaru’s Chinese name dai yuen (大丸) as the destination.
Japan’s “Lost Decade” economic stagnation in 1990’s and the shift of consumer culture towards shopping malls significantly affect the Japanese department stores. After 38 years, Daimaru ended its business in Hong Kong in 1998, the same year when Matsuzakaya also closed its store at Patterson Street. Mitsukoshi was doing fine in Causeway Bay, generating 40% of its overseas earning from Hong Kong alone, but was forced to exit the city in 2006 due to demolition of its host building, Hennessy Centre, to make way for the much taller Hysan Place Shopping Centre. Thanks to a takeover by a local billionaire, SOGO remains as today’s anchoring landmark at the iconic street crossing that defines the very heart of Causeway Bay. With Asia’s largest LED screen installed in 2017, SOGO and the little triangular patch of pedestrian entrance forecourt remain as the most popular meeting spot in the area. Apart from financial crisis and change of consumer taste, one of the biggest issues behind the department stores’ inevitable demise was probably Hong Kong’s skyrocketing real estate price and retail rent in the past two decades, especially in Causeway Bay. In 2011, a 1000 sf (plus 600 sf mezzanine) noodle shop near Times Square was sold for a whopping HK$100m (US$ 12.7m). Without factoring in salary and utility expenses, the shop would need to sell 500 noodle bowls each day for 19 years in order to see the same HK$100m on their balance sheet. Eight years later in 2019, the same retail space changed hands again for HK$180m (US$ 22.9m). 2019 also saw Causeway Bay having the world’s most expensive retail rent for the sixth time since 2013, at US$2,671/ sf annually. In comparison, Upper 5th Avenue in New York was at US$2,250, London’s New Bond Street at US$1,744, Paris’ Avenue des Champs Elysées at US$1,519, Milan’s Via Monte Napoleone at US$1,466, and Tokyo’s Ginza at US$1,219. At such rate, not many shops, especially a multi-level department store, can manage a consistent revenue to commit a long term lease. Interestingly, the rent has dramatically dropped in recent years due to the pandemic.
From the rise of Daimaru, to establishing Causeway Bay as a shopping paradise and the world’s highest retail rental market, to the declining retail scene due to overinflated rents and recent pandemic, a cycle might have come to a full circle. Not only did the Japanese department stores help to define the development and urban landscape of Causeway Bay, they also contribute on establishing Hong Kong’s consumer culture that worth US$5.2 billion a month (2016), and successful build up Hongkongers’ common interest on Japanism, from consumer products and hospitality to food and culture. A generation has gone by since the closure of Daimaru, Japan remains as the no. 1 travel destination for Hongkongers, even for youngsters who have never experienced Little Ginza in Hong Kong.
The next morning, our friend told us to meet him near the metro station of People’s Square. As instructed, we exited the metro and found our way to Huanghe Road. Along the way, we stopped to admire an interesting building at no. 50 Huanghe Road. After we met up with our friend, we headed straight for our tasty breakfast at the well known Jia Jia Tang Bao for their soup dumplings. We queued in front of the restaurant for about 20 minutes before sitting down. We ordered three different types of soup dumplings: pork, pork with crab paste, and pure crab paste. The pure crab paste soup dumplings were fresh and delicious, definitely worth the 20 minute wait on the street.
After breakfast, our friend took us for a walk towards the Bund. We walked past various residential neighborhoods. Near Nanjing East Station, we went inside New World Daimaru Department Store to have a peek at the world’s biggest spiral escalator. From Daimaru, it was only a few minutes walk to the Rock Bund, a mix-use redevelopment zone in the former foreign concession area, in which a series of heritage buildings were renovated into luxury shops and high-end restaurants.
The elegance and humanistic scale of No. 50 Huanghe Road illustrated a big contrast with the odd looking skyscraper in the background.
Huanghe Road was flanked with a number of interesting snack shops and local eateries.
Queuing to eat at a place as famous as Jia Jia Tang Bao proved worthwhile.
Jia Jia Tang Bao is very popular with both locals and tourists.
Behind glass the staff were busy preparing the dumplings with meat and flour.
For such a big metropolis, many residential areas in Shanghai are surprisingly low density.
A street corner occupied by an interesting curved residential complex.
Sidewalk pavement fully utilized for drying laundry.
Mix use buildings with ground floor retail were common scenes in Shanghai.
Behind the street gate, a small residential community with internal alleyways is typical in the city.
Sidewalk pavement used for drying again and again.
The central atrium of New World Daimaru Department Store with a digital video screen at the top.
The spiral escalator ramping up the floors is cladded with bronze coloured panels.
Old westernized buildings could be seen all over the neighborhood near the Bund.
Read other posts on Shanghai 2016:
0.0 SHANGHAI, 2016
1.0 SUZHOU MUSEUM, Suzhou, China
2.0 HUMBLE ADMINISTRATOR’S GARDEN, Suzhou, China
3.0 LION GROVE GARDEN, Suzhou, China
4.0 SOUP DUMPLINGS AND MORNING STROLL, Shanghai, China
5.0 ROCKBUND, Shanghai, China
6.0 M50, Shanghai, China
7.0 1933 SHANGHAI (老場坊) , Shanghai, China
8.0 POLY GRAND THEATRE (上海保利大劇院), Shanghai, China
9.0 FORMER FRENCH CONCESSION, Shanghai, China
10.0 POWER STATION OF ART, Shanghai, China
11.0 LONG MUSEUM (龍美術館), West Bund, Shanghai, China
12.0 THE BUND (外灘) AT NIGHT, Shanghai, China
13.0 TIANZIFANG (田子坊), Shanghai, China
14.0 CHINESE HAND PRINTED BLUE NANKEEN GALLERY (藍印花布博物館), Shanghai, China
15.0 LUJIAZUI (陸家嘴) OF PUDONG (浦東), Shanghai, China