Consumer ISG - Holiday Guide 2021 - Flipbook - Page 11
The Hogan Lovells Holiday Guide 2021
Focus on Hong Kong:
How Hong Kong is adapting
its seasonal retail offer in
a post-COVID-19 world
Tommy Liu and Katherine Tsang, Hong Kong
Throughout the year, Hong Kong has maintained
strict quarantine restrictions for travellers
entering the territory and this has had a
significant impact on both the tourism and retail
sectors. Although the Hong Kong government has
introduced the Consumption Voucher Scheme,
distributing HK$5,000 to eligible people, the retail
market is still trying hard to recover from the damage
inflicted by the reduction of tourists. The downturn
has caused retailers to consolidate resources by
merging and closing outlets. For instance, various
well known fast moving consumer brands have
closed many of their regional stores in Hong
Kong and kept only the flagship boutiques open,
with the intention of reducing costs. This has led
to shops in prime locations being vacant.
Luxury brands are exploring creative ways to reach
out to the new generation of customers by offering
innovative e-commerce shopping experiences, many
devised as a direct result of COVID-19 restrictions.
For instance, several luxury and high-end brands are
exploring the possibility of offering virtual watch,
fragrance, jewellery and handbag viewing experiences
through video calls with fashion advisors, allowing VIP
clients who are unable to shop in store, to enjoy an
exclusive one to one consultation. Other brands have
created their own online shopping platforms, with the
intention of opening an online-to-offline sales channel.
As Hong Kong relaxes its COVID-19 restrictions, we
are seeing an improvement in retail sales, with many
retail employers encouraging or even requesting
employees to get vaccinated in the hope that business
can continue as usual. We have been assisting a number
of clients in respect of COVID-19 vaccination policies
for their employees. Employers should bear in mind
that the lawfulness and reasonableness of mandatory
vaccinations and COVID-19 testing has not been tested
in Hong Kong courts so far. Our view is that employers
should take into account various legal principles when
formulating vaccination/testing policies, such as
whether the order constitutes a lawful and reasonable
order from the employer, whether the requirement is
reasonably practicable to ensure the safety and health
at work of employees, whether there are discrimination
concerns (especially with pregnant employees or
those with long term illnesses) and data privacy.
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