Facing rising logistics costs due to the Middle East war, Hong Kong retailers are using aggressive tactics like direct sourcing and economies of scale to maintain pricing. However, some sectors, such as cosmetics, are already seeing airfreight costs surge up to 15 percent.

Hong Kong’s major retailers are using aggressive tactics such as direct sourcing and leveraging massive economies of scale to avoid raising prices despite surging logistics costs arising from the war in the Middle East. But their resilience is being seriously tested for certain goods, with a leading cosmetics chain warning that shipping and airfreight costs have already surged by up to 15 per cent. Sa Sa International chairman Simon Kwok Siu-ming told the South China Morning Post on Friday that....