Retailers urge local subsidies as mainland incentives draw shoppers north

Local appliance retailers are feeling the pressure as mainland China continues its “national subsidy” program, which allows residents from Macau and Hong Kong to exchange old appliances for new ones.

The policy, renewed this year and effective from January 1, has encouraged many residents to purchase appliances across the border, leaving local stores struggling to retain customers.

One electronics shop reported losing about 20% of its local clientele after the mainland subsidies became accessible to Macau residents last year.

While Macau’s own consumption voucher programs provided a modest boost – mainly for small appliances like hairdryers and electric kettles – sales returned to pre-activity levels once the campaigns ended.

Store operators argue that targeted local subsidies could help reverse this trend.

“The government could consider sector-specific incentives, similar to the mainland program, to encourage residents to shop locally and support small and medium-sized enterprises,” said one retailer, as cited in a Macao Daily News report.

Experienced staff also note that residents often compare prices with mainland stores or online platforms before buying locally. Differences in models, electrical standards, and supply channels sometimes persuade shoppers to stay in Macau, but the competitive pricing gap remains a challenge.

Hence, retailers are urging the government to introduce a new round of consumption-stimulating measures to attract residents to local stores and help stabilize business for small and medium-sized enterprises. LV