Chen Maobo: Fully support the upgrade and transformation of the retail industry in Hong Kong, creating a new situation of higher quality and more vitality in development.

On June 10th, Hong Kong Financial Secretary Paul Chan Mo-po attended the Hong Kong Retail Summit 2026 and described the situation of the Hong Kong retail industry as "rapid transformation, opportunities ahead." Paul Chan Mo-po stated that data shows that the Hong Kong retail industry has seen year-on-year growth for 12 consecutive months, with growth accelerating this year. The hosting of various events, a continuous increase in tourist arrivals, stability in asset markets, booming online sales, and the industry's active pursuit of change have injected new momentum into the industry. However, at the same time, multiple structural transformations are occurring, bringing both challenges and new opportunities. First, there is a deep transformation in consumption patterns. Retail is shifting from being "product-oriented" to "experience-oriented." In this transformation, intellectual property (IP) is becoming a key step in adding value to retail. A successful IP is not just an image or logo, but a set of content, ecology, and culture that can be continuously extended, transforming products from "price competition" to "value competition." Second, technology is reshaping the retail ecosystem comprehensively. E-commerce has become an indispensable channel, with Hong Kong's online sales increasing for 11 consecutive months, with recent growth rates approaching thirty percent. However, the impact of technology extends beyond just sales. At the production and supply chain level, the maturation of a flexible supply chain allows companies to respond more accurately to market demands. Additionally, artificial intelligence is bringing significant opportunities to the retail industry. From demand forecasting, precise marketing, customer service, and store operations, the applications of AI are rapidly expanding. Of course, AI also raises concerns about employment, which must be addressed. The key is to view AI from an "enhancing" rather than "replacing" perspective. Third, the elevation of Hong Kong's status as an international trading center is bringing new opportunities to the retail industry. The "15th Five-Year Plan" emphasizes high-level openness to the outside world, marking a two-way process. As a "super connector" and "super value-adding entity," Hong Kong will play a more critical bridging role in this process. Additionally, with a continuous rise in tourist arrivals, especially a significant increase in European and American tourists, Hong Kong has enormous potential as an international showcase for consumer goods. Paul Chan Mo-po stated that the information provided by these trends is quite clear: create value through experiences, enhance efficiency through technology, and explore markets using Hong Kong's advantages. The key is whether the industry can continue to innovate and actively pursue change. The past success of the Hong Kong retail industry has never relied on a single mode but on adaptability and continuous innovation. When old models encounter bottlenecks, it is even more critical to explore new avenues and build new advantages with an open mindset. Paul Chan Mo-po introduced several ways in which the Hong Kong SAR government fully supports the development and transformation of the industry: First, continuously create a favorable development environment for the retail industry. The Hong Kong government will continue to promote the establishment of financial, trade, cultural, and sports events in Hong Kong to actively stimulate local consumption and attract more international tourists. With the increase in human flow, it is believed that new growth points will be brought to the retail industry, while enhancing the international visibility of local brands and products. Second, assist the industry in expanding into new markets and new sales channels. The Hong Kong Trade and Development Council's "BUD Special Fund" will expand its supporting regions to eight additional economies within this month, all of which are countries along the "Belt and Road" initiative, further supporting businesses in exploring emerging markets. The Hong Kong Trade Development Council will also launch a new session of the "Hong Kong Good Goods Festival" and expand the event to the ASEAN market, helping Hong Kong brands reach more diverse consumer groups and enhance market penetration. Third, strengthen industry development through technological empowerment. With enormous potential in artificial intelligence, the Hong Kong government will further support the retail industry in utilizing AI technology to improve operational efficiency and service quality. At the macro policy level, the "AI+ Industry Development Strategy Committee" will soon convene a meeting, with digital transformation of the retail industry as a key topic. Additionally, the government plans to launch a HK$300 million optimized version of the "Digital Transformation Support Pilot Program" within this year, focusing on assisting small and medium enterprises in adopting mature AI and digital solutions to accelerate their transformation and upgrading. Fourth, continuously optimize systems and regulatory frameworks. The Hong Kong government is willing to provide more flexible and forward-looking development space for innovative products and new business formats. Paul Chan Mo-po emphasized that as long as the government and the industry work together, the Hong Kong retail industry can not only respond to current transformations but also create a higher quality and more dynamic development in the new context.