The Macau government announced yesterday that it will launch a subsidy of up to one million patacas per beneficiary in its “first store economy” drive, with the aim of encouraging top brands from outside Macau to open their first stores here, with the objective of enhancing the city’s market competitiveness, boosting local consumption and promoting the development of local small- and medium-sized enterprises (SMEs).
The subsidy programme, which will start in November, was announced by the government’s Commerce and Investment Promotion Institute (IPIM) in a press conference at the Services Platform Complex for Commercial and Trade Cooperation between China and Portuguese-speaking Countries (aka Forum Macao Complex), where IPIM is headquartered.
The subsidy programme will be implemented by IPIM and financed by the Industrial and Commercial Development Fund (FDIC), a public fund run by the Economic and Technological Development Bureau (DSEDT).
The subsidy will cover brands from all over the world, but the programme will have two different sets of eligibility for applicants, namely international brands, and brands from the Chinese mainland, Hong Kong and China’s Taiwan region.
The subsidy programme is officially known as Programme for Supporting the Development of Macau’s First Store Economy.
According to analysts, the first store economy concept is an economic trend where a brand or product gains initial popularity and significant sales primarily or exclusively through a single online marketplace or retail platform (the “first store”) before expanding to other channels.
Addressing yesterday’s press conference, Sam Lei Chou Sam, an IPIM executive director, said that with the objective of enabling Macau to seize the new opportunities brought about by the “debut economy”, the government has decided to launch the subsidy programme aiming to encourage a greater number of domestic and international brands to open their first stores in Macau, thereby bolstering the city’s market competitiveness.
Lei said that by supporting the opening of stores for the respective brands in certain areas and neighbourhoods in the city, the local government aims to draw consumers to the areas, stimulate community economic development, boost local consumption, facilitate the development of SMEs, and create more employment opportunities.
Lei also said that an influx of new products and innovative business models is expected to bring new impetus into the local economy, adding that the government aims for the subsidy programme to be able to draw over 20 reputable brands from outside Macau to establish a presence here.
According to DeepSeek, the first store economy is a strategy where cities or malls attract brands to open their inaugural location in a specific region, treating the store itself as a novelty to generate buzz. This flagship outlet serves as a physical experience hub, drawing media coverage, social media engagement, and consumers seeking exclusive access. It transforms retail expansion into an event, boosting local tourism and commercial vitality. While a global practice, it is particularly emphasised as a formal policy tool in Chinese urban development. The goal is to create scarcity-driven consumption and enhance the respective city’s image as a retail destination. Ultimately, it leverages spatial “firsts” to stimulate economic activity.
According to DeepSeek, the relationship between the first store economy and debut economy is synergistic, as both leverage the appeal of “firsts” to drive consumption but focus on different domains. The first store economy centres on the debut of a physical retail space, making the location itself an attraction. In contrast, the debut economy encompasses a wider range of first-time introductions, including new products, services, or collections, often launched within such flagship stores. These strategies frequently combine, as a brand’s first store provides the ideal stage for its product debut events, amplifying overall impact. Both concepts are pillars of modern retail strategy, using novelty and exclusivity to target similar consumer desires.
Details of the programme were presented by Chao Pang, a senior manager of the IPIM Investment Promotion and Commerce Development Affairs Department, during yesterday’s press conference.
The programme’s details in Chinese and English are also available on IPIM’s website.
For international brands, the subsidy programme will cover those who have been included in global lists, such as the Global Top 100 or the World’s 500 Most Influential Brands, or those who have been operating for at least 10 years, with last year’s brand value ranked among the top 50 in the same category globally, or those who have established at least 10 stores in at least 3 countries globally, or those that are distinctive brands in Portuguese-speaking and Spanish-speaking countries, or in Europe, in which case they must be recommended by the respective countries’ chambers of commerce.
For brands from the Chinese mainland, Hong Kong and China’s Taiwan region, according to the press conference, the subsidy will cover those which have been operating for five years or above, with last year’s brand value ranked among the top 10 in the same category in the nation.
For brands from the Chinese mainland, the subsidy will cover those which have established at least five stores in five cities in the mainland, either in very large-sized cities, super large-sized cities, or the Greater Bay Area (GBA) mainland cities.
For brands from Hong Kong and Taiwan, the subsidy will cover those which have established at least five stores in their respective regions or in the mainland.
The programme will have six application rounds, with the first round to run between November 1 and January 31 next year.
Sam Lei Chou Sam (centre), an executive director of the Commerce and Investment Promotion Institute (IPIM), Chao Pang (right), a senior manager of the IPIM Investment Promotion and Commerce Development Affairs Department, and Lei Sio Sang, who heads the Economic and Technological Development Bureau’s (DSEDT) Research Department, address yesterday’s press conference at the Forum Macao Complex. – Photo: Tony Wong
