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Tag: Bonjour

  • Hong Kong’s Bonjour Holdings Navigates Stormy Retail Waters: Half-Year Losses Amid Shift in Consumer Behavior

    Hong Kong’s Bonjour Holdings Navigates Stormy Retail Waters: Half-Year Losses Amid Shift in Consumer Behavior

    Hong Kong-based financial behemoth, Bonjour Holdings, has reported a slump in its earnings attributed to what the corporation describes as a “complicated” retail atmosphere.

    Financial Figures

    Bonjour Holdings reported a loss of HK$68.8 million (US$8.8 million) for the half-year ending December 31, 2025. This figure represents a better performance than the same period in 2024 when the company reported a loss of $134.4 million ($17.2 million).

    Bonjour Holdings’ expansive portfolio includes over 20,000 products from brands such as Suisse Reborn, Yumei, Dr. Schafter, and Dr. Bauer.

    The firm’s retail, wholesale, lifestyle, healthcare, and beauty sector recorded a half-year turnover of HK$6.7 million, while technology sales contributed an additional HK$5.5 million. The gross profit for both sectors stood at HK$2.8 million. However, both year-on-year revenue and gross profit witnessed a steep decline of 50.4 per cent and 84.6 per cent, respectively.

    Complex Retail Environment

    In its earnings report statement, Bonjour Holdings stated that the latter half of 2025 presented a complex retail landscape in Hong Kong. Despite the overall inflation rate remaining relatively low at around 1.2 per cent during this period, consumer spending habits reflected cautiousness due to ongoing economic uncertainties.

    The company also highlighted that fluctuations in the property market significantly affected its customers’ disposable income.

    Tourism and Consumer Behavior

    Bonjour Holdings noted that tourism was on a slow path to recovery, with an increase in visitor arrivals. However, the spending habits of these visitors shifted towards experiential consumption, moving away from the traditional luxury retail. Mainland Chinese tourists, albeit returning in larger volumes, showed more selective purchasing habits compared to their pre-pandemic patterns.

    Questions & Answers

    What was Bonjour Holdings’ reported loss for the six months ending December 31, 2025?
    The company reported a loss of HK$68.8 million (US$8.8 million).

    What is the overall impact on Bonjour Holdings due to the current retail environment?
    The complicated retail environment, coupled with economic uncertainties and shifts in the property market, have led to a significant decrease in the company’s earnings.

    How has the spending behavior of tourists, specifically mainland Chinese, changed post-pandemic?
    While the number of mainland Chinese tourists has increased, their purchasing behavior has become more selective compared to pre-pandemic patterns, with a notable shift towards experiential consumption rather than traditional luxury retail.

  • Bonjour subsidiary faces winding-up petition over unpaid rent

    Bonjour subsidiary faces winding-up petition over unpaid rent

    Hong Kong’s Bonjour Holdings, parent of the namesake cosmetics retail chain, has confirmed it is being sued for unpaid rent relating to a tenancy dispute.

    In an advisory note to the city’s stock exchange, the company said its subsidiary Bonjour Cosmetic Wholesale Center, is the subject of a winding-up petition lodged by Apexwealth Investment which will be heard in court on March 10.

    Apexwealth claims Bonjour has failed to pay HK$4.03 million (US$520,000) in rent, air-conditioning charges, management fees and interest following “an alleged breach of a tenancy agreement”.

    Bonjour said in its statement that it was seeking legal advice relating to the petition which it says will have no material impact on the business and normal operations of the company and its subsidiaries.

    Like most Hong Kong retail chains whose business models rely on high volumes of spending by Mainland Chinese and other inbound visitors, Bonjour has been closing underperforming stores in tourist areas since the social unrest of last year and the advent of the Covid-19 pandemic early this year.

    In August, the company reported a loss attributable to shareholders of US$17.93 million on sales down 59.7 percent to $42.93 million. At the time it said it was continuing to review its store network, closing underperforming outlets and negotiating rent discounts with landlords.

  • Bonjour to embrace digital technologies, live streaming used to battle profits

    Bonjour to embrace digital technologies, live streaming used to battle profits

    Bonjour, the Hong Kong-headquartered beauty retailer, says it plans to reduce its reliance on brick-and-mortar stores and focus on developing e-commerce and in-store digitalization.

    It will modify some of its existing stores adding technology that it anticipates will attract and engage customers and create a better shopping experience while also improving operational efficiency.

    The plans were revealed by the chairman and executive director Chen Jianwen along with the company’s results for the half-year to June 30, which included a loss attributable to shareholders of US$17.93 million on sales down 59.7 percent to $42.93 million. The decline was due to the borders being all but closed to foreigners due to the Covid-19 pandemic, including the ranks of mainlanders who traditionally head to the territory for shopping.

    Chen said the company has responded to the absence of tourist spending by diversifying its product portfolio to appeal more to local consumers.

    But the main focus moving forward is on transforming from a traditional retail model to New Retail, he said.

    “Digitalisation of the operating system and business model will help the group to better understand customers’ needs and wants and build a long-term relationship with the customers. Starting with training our frontline staff to broadcast product information online, the group will grasp the market opportunity and further develop the e-commerce platforms.”

    Already, frontline Bonjour staff are being trained in live-streaming skills to become influencers and interact with customers online.

    “At the same time, the group has also established its foothold at major online platforms spanning across 16 countries, including ShopShops, Tmall Global, Kaola.com, JD, Facebook, Youtube, Instagram, and Haitao.com, as well as establishing a WeChat store to connect with VIP users,” said Chen.

    In stores, the company is embracing digital transformation, backed by a new retail innovation center with a broadcast studio and testing self-service equipment, planned for launch into physical stores soon.

    In the future, customers will be able to scan the QR code of a product to learn information before they make a purchase and self-service kiosks will be installed at physical stores so that customers can check out by themselves.

    “With the rise of augmented reality and virtual reality, the group will keep an open mind to embrace new technology that helps customers to virtually try the products on which to help them to explore the most suitable products,” said Chen.

    Meanwhile, Bonjour will continue to review its store network, closing underperforming outlets and negotiating rent discounts with landlords.

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  • Hong Kong beauty chain Bonjour warns of another loss

    Hong Kong beauty chain Bonjour warns of another loss

    Bonjour Holdings has warned of a loss as high as US$12 million for the half-year to June as it weighs the impact of protest activity and the Covid-19-driven lockdown of the border with Mainland China.

    In a profit warning, the health & beauty retail group said a preliminary, unaudited review of its results suggests a loss “not less than 300 percent” of that of the same period last year when it finished the period $3.8 million in the red.

    Besides the decline in inbound tourists to the territory, local consumer sentiment weakened during the six months.

    The company has also booked impairment provisions related to assets and property, and inventories resulting from losses at its retail stores, but such provisions are by nature noncash and have no impact on the group’s cash flow or liquidity.

    Confirmed results will be released at the end of this month.

    In April, Bonjour said it was delisting slow-moving products and had trimmed its store network to compensate for falling sales after reporting a full-year loss of $16.7 million.

    In May, the husband-and-wife founders of the company stepped back from their senior leadership roles, with Dr Wilson Ip Chun Heng resigning as chairman and CEO, and his wife, Chung Pui Wan, stepping down as vice-chairman. Both remained on the board.

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  • Bonjour CEO exits, replacement known yet

    Bonjour CEO exits, replacement known yet

    Bonjour CEO Cheung Ka Fai has resigned after less than two months in the role, citing “personal career development”. He has been replaced by Wong Iu Ming.

    In a statement to the stock exchange, the struggling apparel chain confirmed there was “no disagreement with the board” or other matter relating to the resignation that should be brought to the attention of shareholders.

    In May, the husband-and-wife founders of the beauty-products retailer, Dr Wilson Ip Chun Heng and Chung Pui Wan, stepped down from their roles as chairman and CEO, and vice-chairman, respectively. Cheung stepped up from CFO to CEO.

    Ming, 65, is currently executive director and deputy CEO of Haifu International Finance Holding Group and holds directorships of Global Leather Intelligence, China Leather Intelligence, Innogy Global, Haifu China Petrochemical Group. He is a past GM of the Internal Audit of Urban Renewal Authority.

    He also has experience in risk controls, finance and administration, and the internal audit of both large Hong Kong public bodies and multinational conglomerates.

    Previous Bonjour CEO Cheung, 45, has been with Bonjour since August 2012 and has more than 20 years’ experience in audit, finance, and business advisory.

    In March, Bonjour Holdings reported a sales decrease of 18.7 percent for the 2019 fiscal year, following a 7.3-per-cent decline in 2018. The company’s annual loss attributable to shareholders ballooned from US$5.1 million in 2018 to $16.7 million last year.

  • Bonjour trims range, relocates stores as losses mount

    Bonjour trims range, relocates stores as losses mount

    Hong Kong cosmetics retailer Bonjour Holdings has delisted slow-moving products and trimmed its store network as it grapples with falling sales and mounting losses.

    The company has just released its results for last year, when sales fell by 18.7 percent, following a 7.3-per-cent decline in 2018. The company’s annual loss attributable to shareholders ballooned from HKD39.6 million (US$5.1 million) in 2018 to HKD129.6 million ($16.7 million) last year.

    Culling non-performing SKUs in stores, Bonjour Holdings shifted its focus to brands and products which are faster moving and/or have higher margins. Store layouts were changed to better display top-selling products and trendy lines to create an enhanced shopping experience.

    Bonjour ended the year with 37 stores in Hong Kong, Macau and Guangzhou, two fewer than a year earlier. But within that figure, stores with weak sales performance were replaced by new ones in community districts as the company joined many local brands by shifting focus to locations frequented by locals rather than inbound visitors.

    The company is also open to short-term leases for street-front shops which would be more flexible during the unsettled economic times and with negotiable rents.

    In a stock-exchange filing, Bonjour Holdings said it was responding to a market disrupted by social unrest last year and now the coronavirus pandemic, by reducing its operating costs. Such measures include reducing store trading hours by reducing from two shifts to one, and requiring all staff to take at least five days of unpaid leave to reduce staff costs.

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  • Bonjour Holdings warns of substantial loss

    Bonjour Holdings warns of substantial loss

    Beauty retailer Bonjour Holdings has warned shareholders of a “substantially increased loss” for the current year as the social unrest and falling Mainland Chinese visitor numbers take their toll.

    Last year, Bonjour Holdings reported a net loss of HK$39.6 million (US$5 million). In a letter to shareholders, chairman Wilson Ip did not put a figure on the loss anticipated in the year to December, but his words were ominous.

    “The group’s turnover has deteriorated severely and is expected to record a double-digit year-on-year decline for the year,” he said. “The average gross profit margin also decreases mainly due to the change in sales mix, consumer’s spending patterns and the increase in the promotion to attract customers.”

    He said Hong Kong’s economy suffered “an abrupt deterioration” in the second half of the year when consumption and tourism-related sectors were hit hard by local social incidents.

    “Moreover, the global economic slowdown and escalated US-Mainland trade tensions weighed further on the Hong Kong economic outlook.

    “Facing such an economic downturn, in a view to ease the difficult situation, the group now has key focuses on cost optimization and value creation by streamlining operational efficiency and better business planning to build or sustain our competitive advantage.”

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  • Rent reductions causes Bonjour Holdings a big loss

    Rent reductions causes Bonjour Holdings a big loss

    Bonjour Holdings sales fell 7.3 per cent last year as the health and beauty products retailer reorganised its store network.

    The company reported a loss attributable to shareholders of HK$39.6 million (US$5 million), which was a significant improvement on the previous year’s loss of $202.3 million.

    Same-store sales crept up 0.8 per cent, albeit that is a slower rate than the 2.3 per cent of 2017.

    The Hong Kong-listed group finished the year with 39 stores in Hong Kong, Macau and Guangzhou, a reduction of just one. But during the year it relocated some stores and negotiated more favourable rental deals from its landlords on others. That strategy saw rent, as a proportion of turnover, fall from 19.1 per cent in 2017 to 15.5 per cent last year, the total rent bill down from $368.8 million to $277.6 million.

    “Although the high-street shop rents started to raise slightly last year due to the recovery of the retail sector in the first half, the group has adopted an optimistic cautious strategic planning in its store network in response to the market changes,” the company said in its results announcement.

    “Stores were deliberately chosen at both tourists shopping hotspots and community districts or residential areas with high population density to cater to both tourists and local communities’ needs which also helped the group to increase the market penetration.”

    Tourist demographics change

    The structural change to the mix of mainland tourists during the last few years has impacted on the average ticket size at Bonjour Holdings’ stores. An increasing number of arrivals are now coming from lower-tier cities with less spending power. In addition, the weak RMB and uncertain economic environment dampened the attractiveness of Hong Kong goods to mainland shoppers that they became more cautious in their spending, the company said.

    Bonjour Holdings said pressure on profitability remained last year, despite the group increasing its profit margin by 0.3 per cent.

    E-commerce expansion

    One bright point in Bonjour Holdings’ results was the increase in online sales, up 9 per cent year on year.

    As well as upgrading its own online store, Bonjour has opened flagships on e-commerce platforms Tmall Global, Kaola and Xiahongshu to increase brand visibility, provide customers with more information on products, and launch timely promotions.

    “E-commerce keeps growing and social media continues to play a bigger role,” the company said in its results filing.

    “The group put more effort into digital media by distributing promotional videos on Facebook and Weibo pages and regularly launched online promotional activities and special events, including “Double Eleven”.

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  • Bonjour family to jail for Fraud

    Bonjour family to jail for Fraud

    A family of swindlers who stole more than HK$40 million (US$5 million) from cosmetics retailer Bonjour have been imprisoned for their crimes.

    The highest sentence of 11 years behind bars was dealt out to the Bonjour fraud scheme ringleader Kiu Mei-ling, 64, a Bonjour employee in charge of payroll who funnelled company funds into her family’s personal accounts. Her son Ha Ting-pong, who was also an employee of the firm, received a sentence of seven years, while her husband received a 6½-year sentence.

    Kiu used falsely-inflated salaries and fake employee identities to siphon money from the business between 2004 and 2011. She was caught when a company manager noticed an unusually high salary was being paid to a new member of staff. Most of the funds were not recovered, leading lawyers for the retailer to file a claim for the bail money posted by the family, which is pending further judgement.

    Deputy judge Michael Lunn called the scam a “gross breach of trust” that exploited the firm’s weak internal processes.

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  • Bonjour loss grows, as expected

    Cosmetics company Bonjour Holdings’ first-half operating loss expanded to HK$50.3 million (US$6.4 million) from $22.3 million for the same period last year.

    This follows a warning last month projecting a “substantial” Bonjour loss.

    The company’s gross profit margin dropped from 40.3 per cent to 36.6 per cent, and it had a 9.3 per cent drop in turnover to $916.8 million.

    Included in the operating loss was a loss on disposal of available-for-sale financial assets amounting to $6.1 million. Excluding this, the operating loss narrowed down from the figure of $55.6 million at the end of last year’s second half to $44.2 million.

    Bonjour says its performance reflects the plummeting of Hong Kong retail sales to all-time lows over the past few years. It has been hit by the steep drop in mainland visitors, an “inharmonious” political climate in Hong Kong and cross-border conflicts.

    It also says Chinese tourists no longer consider high-value, big-ticket shopping as a top preference, instead focussing more on experiencing Hong Kong’s culture and history.

    In response to these trends, the group says it has adjusted its product portfolio, pricing and sales network, and has been involved in exhibitions around the world in order to expand its sourcing network. 

    E-commerce strengthened

    Bonjour has also strengthened its e-commerce sales channels. In addition to its official online shopping website and long-established shopping platforms at Tmall and WeChat, the group has cooperated with China-post Cross-border eCommerce to launch an online cross-border shopping platform that has further integrated online and physical stores. First-half online retail sales in the Hong Kong and China markets grew by 2 per cent.

    Bonjour also rationalised its retail network. With sharply falling rents offering retailers more affordable choices, it seized opportunities to renew existing leases at “considerable” concessionary rent reductions and to spread the store network to different neighbourhoods.

    At the end of June, the group had a combined overall store count in Hong Kong, Macau and Guangzhou of 43, down three from the same time last year. The retail store rent-to-turnover ratio improved to 20.4 per cent from 21.1 per cent.

    The group now distributes 180 brands of global cosmetics, skincare and healthcare products, including Auslin, Dr Bauer, Dr Schafter, Suisse Reborn, WowWow and Yumei. Because of changing customer preferences, the group’s own product sales mix underperformed, decreasing by 1.8 per cent year on year.

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  • Bad record for Bonjour Holdings

    Bad record for Bonjour Holdings

    Tumbling turnover and gross profit margin have flipped an operating profit to a loss for beauty and healthcare retailer Bonjour Holdings.

    Its turnover for last year fell 12.8 per cent to HK$1.995 billion (US$256.8 million), while its gross profit margin dropped from 41.8 to 38.1 per cent. This gave the group a loss of HK$77.9 million compared to a profit of HK$50.7 million in 2015.

    During the year, the group rationalised its retail network from 47 to 42 outlets.

    Hong Kong and Macau retail sales fell for the second straight year, the company’s audited results show.

    Same-store sales fell 10.1 per cent despite the average sales value per transaction for mainland tourists rising by 7 per cent. However, the total number of mainland customers dropped by double digits last year. The company says the drop in its total number of customers contributed about 9 per cent of the overall retail decline during the year.

    Bonjour says an enormous demand continued for Korean beauty and skincare products in Hong Kong’s retail market. Because of this, the group has formed dedicated procurement team to explore this trend.

    During the year, Bonjour continued to introduce a variety of mass Korean beauty products to keep the market competitive and to offset the negative impacts of the falling sales of Western and Japanese premium brands.

    Meanwhile, the group has been increasing awareness of its brand through online platforms. It partnered with Tmall and WeChat during the year to broaden its touch points with target consumers.

    “Additionally, with the rapid rise of live-streaming and photo-sharing apps, video and photo content and key opinion leaders (KOL), partnerships has taken up a significant role in our marketing campaigns,” says Bonjour. “Online image sharing has become a critical element for us to communicate with our target consumers.”

    Delivery service

    The group partnered with Alipay in two one-day events during the year, “2016 Carnival All the Way” and “Double Eleven”. The group also cooperated with China Post Cross-border eCommerce (CPCBE) to launch the cross-border shopping platform www.bonjourO2O.com (BonjourO2O). With its direct delivery service, customers can buy overseas items not available in Bonjour’s mainland stores.

    Online retail sales last year reached HK$40.1 million, up 7.4 per cent from 2015.

    At the end of the year, the group had 42 stores in Hong Kong, Macau and Guangzhou. During the year, sales continued to decline in the face of “sky-high” rents. While rents have been adjusting over the past two years, the reduction has not been fully reflected in the company’s income statements as it is usually locked into leases with a three-year term. The company is able to renew only about a third of its agreements each year.

    “We believe that stabilising sales along with falling rents should help improve our profitability gradually,” says the group.

    Bonjour currently distributes 180 international cosmetic, skincare and healthcare products including Dr Schafter, Suisse Reborn, WowWow and Yumei. During the year the company adjusted the product mix, increasing international parallel-import products and mid-to-lower-priced trendy products while cutting back on higher-priced exclusive products.

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