A high-stakes political contest is unfolding in Hong Kong’s functional constituency elections, with two prominent retail figures—a seasoned incumbent and a powerful industry newcomer—vying for the pivotal Wholesale and Retail seat in the December 7 Legislative Council ballot. Annie Tse, chairwoman of the Retail Management Association (HKRMA) and Tse Sui Luen Jewellery, is mounting a challenge against the Liberal Party’s veteran lawmaker, Shau Ka-fai, synthesizing their differing visions for an industry Tse warns is standing at a dangerous crossroads amid economic headwinds and rapidly changing consumer habits.
The professional skirmish encapsulates a broader debate over how the sector should navigate structural challenges, from rising operational costs and labor shortages to the need for digital transformation and greater market protection. The 1,084 voters in this functional constituency are comprised exclusively of corporate bodies, making this a focused battle for the heart of Hong Kong’s commercial backbone.
Newcomer Vows Practical Business Acumen
Tse, a seasoned executive known for her active commentary on consumption trends, is positioning herself as the candidate with the most relevant real-world retail experience. She argues that her executive background at the helm of a major luxury brand, coupled with years leading the HKRMA, provides an essential, hands-on understanding of current pain points. “My strength is that I am, genuinely, a retailer,” Tse stated, noting that her deep dive into retail data from the association provides crucial insight.
Her platform centers on a dual approach: addressing immediate operational pressures and paving the way for future sustainability. Immediate concerns include alleviating rental stress, resolving persistent staffing deficits, and, critically, redefining customer outreach. Tse emphasized that expanding the customer base is not merely about increasing foot traffic, but about boosting the spending power of existing clientele and rigorously protecting the value and distinctiveness of local brands against increasing mainland enterprise infiltration.
For the future, Tse advocates for heightened technological adoption, a fundamental re-evaluation of the industry’s functional role, and encouraging cross-sector collaborations to spur sustained growth. While acknowledging Shau Ka-fai’s industry diligence, Tse stressed that her decision to run stems from a feeling of civic responsibility to steer the struggling industry, insisting, “I am highly confident that I can find a path forward for the industry.”
Incumbent Emphasizes Legislative Track Record
In response to the challenge, incumbent Shau Ka-fai, who has served as the sector’s representative for nine years following over a decade as a District Councillor, pointed to his extensive political experience and deep institutional connections. Shau maintains that his robust ties with 66 trade associations ensure he can rapidly grasp industry demands and effectively translate them into actionable policy.
Shau contested Tse’s description of the industry being at a “crossroads,” instead framing the current situation as a recovery period following the impacts of political unrest and the pandemic. He praised governmental support mechanisms, like employment subsidies and digital consumption vouchers, for aiding survival. However, he concurred that the sector faces sustained pressure from shifting tourist spending patterns, the rise of cross-border e-commerce, and a strong U.S. dollar that diminishes purchasing power for visitors.
Addressing the need for transformation, Shau cautioned that digital pivot points are not universally accessible. “A small neighborhood corner store cannot easily compete with a massive supermarket online just by selling a single bottle of yogurt,” he noted, underscoring the need for specialized strategies that marry innovation with established brand strengths.
Cost Control and Labor Force Debates
A prominent divergence between the candidates centers on labor policy. Shau highlighted soaring operational expenses, citing a 40% increase in outsourced cleaning staff wages over four years, which he contends has forced businesses to cut personnel and consequently degrade service quality. He advocates for importing non-local labor as a crucial measure to reduce cost burdens and enhance industry competitiveness, citing Hong Kong’s aging population and low birth rate as factors necessitating outside help.
Tse, while focusing on solving existing labor shortages, prioritizes improving local sector appeal and efficiency, emphasizing innovation as the key to sustainable staffing solutions. Both contenders agree that the eventual winner will face a daunting mandate: securing the viability of a multi-billion-dollar sector indispensable to Hong Kong’s global commercial identity.
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