Retail News CRM

Tag: tragedy

  • Why a tourist’s death should serve as a wake-up call for HK

    Why a tourist’s death should serve as a wake-up call for HK

    Hong Kong’s retail and tourism sectors have suffered another setback as mainland media have, with good reason, reportedly widely the tragic death of a Chinese tourist in the city this week.

    Already reeling from slowing sales, the latest negative publicity about a “forced shopping” trip that went horribly wrong for a visitor was something that local tourism-related businesses could ill afford.

    Now, as the damage has already been done, what can Hong Kong do to redress the situation and prevent such incidents from happening again?

    And what are the broader lessons for local tourism authorities?

    On Monday, a mainland visitor was beaten up by a gang of men after he intervened in a brawl between a fellow tour group member and the tour guide.

    In the incident that took place at a jewelry store in Hung Hom, the 53-year-old man stood up in support of a female fellow tourist who was being berated for not making any purchases at the store. 

    Following a loud argument and some scuffles, the man was dragged out of the shop and beaten up by a gang of four men.

    The beating was so severe that the victim, a person named Miao Chunqi, later died in hospital. 

    China’s state media, not surprisingly, has covered the news in detail, portraying it as a reflection of the chaotic Hong Kong tourism market and lack of protection for mainland shoppers.

    The Global Times, for instance, wondered if there is enough rule of law in Hong Kong’s tourism industry.

    Following the earlier scathing criticism over anti-parallel trading protests in Hong Kong, the latest commentary on cross-border shopping issues is bound to put off more mainlanders. 

    While some reports say that the assailants of Maio were from the mainland, Hong Kong’s tourism authorities still cannot avoid facing difficult questions.

    The tragic incident could, in fact, serve a purpose if the government wakes up to the uncomfortable truth regarding many tour groups from China.

    The root of the problem is that some low-quality tour service operators in China have been offering “zero” price tours to Hong Kong to force tour members to spend in specific shops in Hong Kong.

    The tour operators hope to more than make up for the cheap tours by reaping commissions from the retail outlets with which they have prior arrangements.

    While some Chinese tour members know such norms and are willing to spend in the shops they are taken to, some of them resent being put under pressure and refuse to make purchases.

    It is then that conflicts arise with the tour guides and trip organizers, leading to violence in some cases.

    The distorted service chain has been in existence for many years, but authorities in both Hong Kong and China have shown little inclination or courage to tackle the issue.

    One reason why they have been reluctant to shake up things is this: officials fear that disrupting the trade will go against the process of deepening the commercial ties between China and Hong Kong.

    Even after several reports of mainland shoppers being taken for a ride, the Leung Chun-ying administration has failed to act over the issue of errant tour service providers.

    Now, with the shocking case of a tourist’s death following a “forced shopping” trip, one only hopes that it will finally be a wake-up call for the government. 

    The time has come for our chief executive to address the industry problems, fixing things at home as well as putting pressure on Chinese authorities to clamp down on shady tour services firms. 

    The task is not too difficult if Leung musters the will and determination and the political courage to take on some vested interests.

    Is he up to the challenge?

     

  • Children’s Place boosts Rana Plaza fund

    US retailer Children’s Place, has contributed another $2 million to the Rana Plaza Donors Trust Fund, narrowing the shortfall to $2.7 million.

    The fund was set up to provide assistance to victims of the 2013 disaster when 1129 workers were crushed to death when a multistorey building full of sweatshops collapsed.

    The Children’s Place contribution followed another of $1.1 million by Italy’s Benetton earlier this month and $100,000 from H&M, which never actually sourced any clothes from the complex.

    Last Thursday, Children’s Place working with the ILO convened a conference call of major brands and retailers in an attempt to fill the funding gap by the second anniversary of the Rana Plaza disaster.  This call raised over $1 million in donations to the fund. In addition to those donations, Children’s Place contributed another $2 million to the fund, taking its total contribution to the compensation fund to $2.5 million.

    “We have been calling on brands to work together to collectively resolve the funding crisis for months, and we welcome the initiative of The Children’s Place in doing so now,” said Sam Maher of the Clean Clothes Campaign.

    This last minute initiative coincided with a Global Day of Action, for which activists participated in actions around the world, calling on all brands sourcing from Bangladesh to fill the current funding gap in compensation immediately, and to sign the Bangladesh Accord on Fire and Building Safety. There were major events and demonstrations in at least 20 countries.  Global actions included a mass demonstration held by trade unions and garment workers federations in Dhaka, a public art installation forming a concert of sewing machines in Genova, Italy, demonstrations outside stores including Mango, JC Penney, Zara, and Walmart in the US, and a flashmob outside stores in Berlin.

    “There remains hope that brands and retailers will continue to step up and make additional contributions in order to fully fill the fund at $30 million, the amount required to provide the survivors and victims’ families with full and fair compensation,” said Maher.

    “Over the past several months, there have been rumours of a forthcoming donation of around $4 million from the Bangladesh Alliance, which includes Walmart and a number of other US and Canadian brands with production in Bangladesh.

    “The donations of The Children’s Place and others in the run up to the anniversary has brought us close to the target, but frustratingly, not close enough to finally complete this program.”

    “For months Walmart has been delaying any further donation, claiming that instead the Alliance would be making a significant payment. With only $2.7 million left, the Alliance is presented with a unique opportunity to finally close the gap and we are calling on them to make good on this promise by May Day.”

    The urgency and need for full compensation grows with each passing day.  Many survivors have had to use their entirety of their compensation payments to date on medical fees and are living in abject poverty, awaiting the final installments. To date, claimants have only received 70 per cent of their calculated settlements.