Newspaper price war reaches stalemate
Hong Kong - The Hong Kong & Kowloon Newspaper Association (HKKNA) and local Chinese newspaper owners have failed to reach an agreement to set a fixed cover price for all Chinese newspapers for both street vendors and convenience stores after calling off the cost-rising plan.
Chinese-language newspapers had considered a $2 cover price increase, but the argument has now turned into a stouch between convenience stores and street vendors.
Chung Tak Wing, vice-president of the HKKNA, explains that almost 150 vendors were forced to shut down because convenience stores had stolen their business.
While convenience offer free gists with each newspaper purchase of $6, the regular price of newspaper is $5 at most vendors.
"Mongkok is the best example," Chung continued. "That's why we need to set a fixed cost for all the Chinese newspaper in every Hong Kong district."
Vendors' income solely depends on selling newspapers. But as the number of convenience store is growing fast, vendors are facing a looming price war.
Newspaper companies for years have refused to comply with the association or negotiated with retailers.