Hong Kong’s major household-goods chain 日本城 changed its store name from "日本城" to "真好城" in July. It cited the decline in the proportion of Japanese products, while some observers believe the change also reflects worsening Japan-China relations.
Hong Kong household-goods chain 日本城 announced in July that its store name would change from "日本城" to "真好城". As a result, the company will review its brand strategy, which has focused on Japanese products.
The company said that, with Japanese products accounting for less than approximately 10% of its merchandise, its current name "does not reflect the current business model." It had operated approximately 260 stores in the Hong Kong market, but said it would change its brand name to bring it into line with current conditions.
Against the backdrop of worsening Japan-China relations, official exchanges between the Hong Kong government and the Consulate-General of Japan have been suspended, while performances by Japanese singers have also been canceled. A local newspaper described the name change as "a move to protect itself."