Core Viewpoint - Mannings, a drugstore chain, announced the closure of all its offline stores and online mall in mainland China, with the last operating day for physical stores set for January 15, 2026, and the online store ceasing operations on December 28, 2025 [1][3]. Group 1: Company Performance - Mannings entered the mainland China market in 2004 and has over 120 stores in the region, but has struggled to replicate its successful business model from Hong Kong due to regulatory constraints and market differences [3][12]. - The company’s brand image in mainland China is unclear, lacking the professional authority of a pharmacy and the trendy appeal of a modern retail store [3][12]. - Other Hong Kong brands, such as Sa Sa International, have also exited the mainland market, while Watsons continues to explore options despite a 3% revenue decline and a 53% drop in profit in the first half of the year [3][5]. Group 2: Market Environment - The retail landscape in mainland China has shifted dramatically, with local brands rising and e-commerce platforms like Alibaba and JD.com changing consumer shopping habits [12]. - Traditional Hong Kong retail brands, including Mannings, have struggled to adapt to the competitive environment, often relying on outdated operational models that do not resonate with local consumers [12]. - High operational costs, including rent and labor, have further pressured profit margins for these brands, as they often choose locations in prime areas with high rental costs [12]. Group 3: Industry Trends - The trend of closing physical stores is not isolated to Mannings; other brands like AEON and Taste are also reducing their presence in mainland China due to declining performance [6][12]. - The overall market for Hong Kong retail brands is challenging, with many facing significant revenue declines and increased competition from local and online retailers [10][12]. - Experts suggest that for Hong Kong retail brands to succeed in mainland China, they need to adopt strategies such as developing O2O models, optimizing product offerings, and focusing on core urban areas [12].