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HONG KONG: Chain stores and mega shops are becoming increasingly popular in Hong Kong among customers who believe such shops offer a convenient and comfortable shopping experience.

But there is a growing debate over whether demand for standardized goods and services is stronger than the need to preserve local culture in the form of small shops that are struggling for survival against big chain stores.

Meanwhile, marketing strategists say they believe customers still have a variety of choices.

Chan Shu-chai, 56, operates a traditional Chinese medicine clinic in a shopping mall located in a public housing estate in Lam Tin. He pays about HK$10,000 in rent each month, which is about a third of his monthly revenue.

When he opened the clinic three years ago, he expected to stay in business for at least five years. But then he was told that his lease might not be renewed after next month.

"I am afraid I could be forced to close my business because chain stores like ParknShop and Jusco have been opening shops in other shopping malls and they can afford to pay higher rents," he said.

"They (chain stores) offer standardized products and have fixed prices. But many of my customers have told that small shops are far more convenient because they offer different and unique services," he said.

The ParknShop and Wellcome chains have more than 400 branches in Hong Kong.

Some people have also expressed fears that shops in old districts, such as Sham Shui Po and Wan Chai, which are famous for their small shops offering diverse products, could be overrun by big businesses after being re-developed.

Chan Ho-leung, a local resident, opposed shopping at big chain stores on principle.

"I normally try to avoid shopping at big stores if I am given a choice. The big businesses are already making a lot of money, so I do not need to give them more," Chan said.

Mirana Szeto, a professor of comparative literature at the University of Hong Kong, said the spread of big international chains posed a threat to more traditional businesses.

"The dominance of chain stores makes it difficult for young people to start businesses. They cannot put their entrepreneurship into practice because the start-up capital is huge, and even the rent is far from affordable.

"Not only will local culture disappear because of overseas management style, but also many of the chain stores offer high-priced products that grassroots people cannot afford.

"Maybe 4 million out of 7 million Hongkongers could afford such products, but that is sufficient for big businesses to make a profit. "

But Leo Sin, a marketing professor at Chinese University, said chain stores were not doing anything wrong as long as they followed the rules and did not prohibit competitors from entering the market.

(China Daily 02/27/2007 page5)