What led to the PR debacle around Pricerite's 'final day' announcement?

Pricerite, a local furniture and electrical appliances retailer, has triggered backlash after sparking speculations of its potential closure with a "final day" message on social media.  

On 14 October, the retailer posted a message of gratitude, expressing appreciation for years of support late last night, along with viral images of “last day” notices shown at entrances of several Pricerite stores in town such as Yuen Long and Prince Edward.  

A day after, the company clarified that the "final day" post was part of a sales campaign, stating it is not closing, instead, it is rolling out a massive sale called “Breakthrough new prices", which will see up to 56% discounts on over 7,500 products, with an average reduction of 23%.

However, the move has drawn mixed reactions from netizens. A check by MARKETING-INTERACTIVE saw on Facebook that the post has garnered over 2,000 reactions from netizens, with some saying the company has overplayed with its marketing ploy, while some said they were freaked out by the announcement last night.  

Media intelligence firm CARMA has observed 710 mentions among Hong Kong netizens regarding the incident. Sentiments regarding the incident have been 45.9% positive and 15.5% negative. It is worth noting that prior to the incident, the negative sentiments surrounding the brand were only 4.8%. 

Many netizens have expressed their gratitude towards Pricerite for the final sale event, thanking them for providing such great deals, according to CARMA.  

“Some netizens have also raised concerns about the sudden closure, wondering if it is related to the recent economic downturn in Hong Kong. Others have speculated that the store may reopen under a new name or concept,” added CARMA.  

Keywords associated with the incident include "shutdown", "Pricerite", "many years", "thank you", "ikea", "support". 

MARKETING-INTERACTIVE has reached out to Pricerite for a statement. 

Bold move or a potential misstep? 

While this smells like a marketing stunt, Desmond Ku, founder and director of The Bridge Agency, said the move has attracted eyeballs, however, it has shown the brand’s lack of empathy and hurt consumers’ feelings.  

“The marketing stunt came right after the anniversary promotional campaign. While many customers have purchased products from the store, they were worried its potential shutdown would affect the delivery of products,” he added. 

During the economic downturn, consumers are particularly sensitive to retail behaviour as a recent survey by the Hong Kong Public Opinion Research Institute (HKPORI) revealed that economic satisfaction among Hongkongers has dropped to just 19%. Most recently, Pricerite shut its Kennedy Town and North Point branches, with only one store on Hong Kong Island and 13 left across the city.

Pricerite's use of “Final day” as a marketing gimmick to create speculation might attract attention, but it could also lead to panic and negative sentiment among customers, according to Katie Lam, general manager, L Concept Communications.  

“While this strategy may drive short-term sales and generate buzz, it risks undermining long-term brand loyalty. Balancing promotional tactics with a focus on brand integrity and customer experience will be crucial for sustained success,” she added. 

David Ko, managing director, RFI Asia, said A publicity stunt of any kind always runs a risk, so there is a certain degree of uncertainty as to how the public will react.  

Brands need to weigh the potential benefit versus the risk of backlash, especially if they are inviting positive sentiments, he added. “If found out to be unearned, positive sentiments can turn negative in a second. In this case, if indeed this is a publicity stunt, Pricerite has already enjoyed the bump in exposure, but is it worth the risk just to promote a sale?”  

Meanwhile, Terry Tsang, director, Narrow Door, said the term "崩口人忌崩口碗" describes the situation perfectly. "I think they triggered a negative PR this time instead of being seen as witty and daring. I understand many brands want to create talking point in the cluttered market instead of doing an ad. Pricerite obviously backfires this time."

What can be communicated better? 

The late-night post has in fact caused unnecessary confusion, Ko said it would have been the perfect opportunity to promote the sale by giving the complete story, “Thank you for your support all those years, but…we are not closing.”  

“This would have been a better approach, it’s a light touch of humour, with a callout to the tough operating environment for Hong Kong retailers,” he added.

While bold campaigns can attract attention, they must align with consumer sentiment, especially in challenging economic times, said Roni Chik, managing director of CMRS Group.

"Brands should focus on building trust through authentic communication and leverage data insights to craft strategies that resonate with their audience. A thoughtful approach can enhance engagement and foster long-term loyalty," he added.

On the creative front, Rudi Leung, director and founder of Hungry Digital, said in communication, context is as important as content.  

“While this marketing stunt likely grabbed attention on social media, there are clever and more positive ways to announce price cuts or say goodbye to old prices without risking misinterpretation. Context can make all the difference,” he added. 

Leung took IKEA Canada’s campaign as an example, which encouraged consumers to “spot the difference” between two product images, with one stating a lower price. 

“The IKEA campaign demonstrates a humorous way, instead of a publicity stunt, to talk about price drops with good taste,” he added. 

It’s understandable that there may be some concerns regarding recent purchases and delivery expectations. Desmond So, CEO, Uth Creative believed there are always creative ways to make an impact. “For instance, embracing the sentiment of valuing the long-standing relationship with the people of Hong Kong could highlight the importance of that connection while also signalling a new direction for the brand.” 

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