Hong Kong mask suppliers to exit market as city drops face-covering mandate

Hong Kong might see majority of local mask shops and manufacturers exit the market as Hong Kong has just dropped its mask mandate. 

According to local mask supplier Family Mask's Facebook, it said that it welcomes the government's policy to scrap the mask mandate, symbolising that the city is returning to normalcy. However, the company said that it will still produce high-quality masks for HongKongers until everyone does not need a mask. "Until then, we will exit the market. We hope every HongKonger can live their lives to the fullest and enjoy their journeys," the statement read. 

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However, not every mask manufacturer would choose to leave the market. In a conversation with MARKETING-INTERACTIVE, Ryan Lee, CEO of local medical supply store Good Mask revealed that the potential impact imposed by the government’s move is expected. In fact, he also said the sales of the company has dropped 60% to 70% compared to the period when the city’s mask mandate was established.  

Lee believed that many mask shops in Hong Kong will close in the coming year, "In fact, masks shops have been successively closing since the end of 2021. The number of mask shops in Hong Kong were peaked at around 200 to 300. However, very few of them are left currently," Lee said. 

In response to the change in consumers' behaviour, Good Mask will expand its business in other aspects such as food gourmet, boutiques and selfie studio-boutique, which offers Disney-licensed photo shooting spots and personalised gifting ideas for consumers.

Edwin Lee, founder and CEO of Bridgeway Prime Shop Fund Management told SCMP that there are currently about 300 mask shops across all districts in Hong Kong, and most of them are on short-term leases. He predicted that up to 90% of them may close by the end of next year. As a result, 150,000 sq ft of retail space may be freed up. Meanwhile, landlords need time to find new tenants with long-term leases.

Lee added that since most of the mask shops are on short-term leases, their rents are about 70% to 80% cheaper than before the pandemic. Some rents are about HK$100,000 per month in Russell Street Causeway Bay, one of the most concentrated streets in core districts commanding rents in millions per month before the pandemic. Among about 300 mask shops in Hong Kong, approximately 30 might stay open, which are located in core districts and selling masks with special design, Lee said.

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This comes as Hong Kong's leader John Lee announced that the city would drop the mask mandate from 1 March, where people in the city can go mask-free both indoors and outdoors, as well as when taking public transport. Lee said that the decision was made based on a few factors, including the stability of the local situation of Covid-19 and no outbreaks among high-risk populations such as hospitals, schools and care homes.  

Furthermore, the winding down of influenza and other respiratory viruses is also one of the reasons the government made the decision, “The data showed the local epidemic situation was under control and there was no big rebound. Hong Kong has already built a wide and comprehensive immunity barrier,” Lee said.

In high risk places such as hospitals and care homes, management teams can decide whether staff and visitors should wear masks. “We think this is the best time to make this decision. It is a clear message to show Hong Kong is resuming normalcy," Lee added.

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