Tag: Hong Kong Productivity Council

  • How some retailers are using O2O strategies to boost sales

    How some retailers are using O2O strategies to boost sales

    A slowdown in mainland tourist inflow has prompted Hong Kong’s retailers to step up efforts to attract those who are still making their way to the city.

    To grab the attention of the visitors, shops and other tourism-dependent entities are launching new online-to-offline marketing campaigns.

    One key way of reaching the customers has been to gather information on people visiting Ocean Park, the marine-life theme park that is popular with Chinese tourists.

    Mainlanders seeking to visit Ocean Park normally book their tickets through agents and have to leave some sort of contact information, usually their phone numbers.

    Now some marketing firms are gathering those telephone numbers and using them to craft O2O campaigns for their retail sector clients.

    Hooking up with the ticket agents, the marketing firms gain access to those phone numbers. Then they approach the ticket buyers by asking if they are willing to receive some Hong Kong-related information and promotions.

    Once the consent is secured, they will send discount e-coupons to the visitors on behalf of retailers, as Kevin Ng, a consultant with the Hong Kong Productivity Council, told a seminar recently.

    Since people who have bought Ocean Park tickets will definitely come to Hong Kong, such marketing activities will be very specific and targeted, leading to a greater chance of doing business.

    Sheung Wan is known for its cluster of shops selling Chinese herbs and dried seafood. Even those traditional businesses have begun using the innovative O2O route to win more business, according to Ng.

     

  • Retailers remain pessimistic about industry prospects

    Retailers remain pessimistic about industry prospects

    Hong Kong’s retailers remain pessimistic about their industry prospects, with a survey from the Hong Kong Productivity Council suggesting that the sector’s business confidence is at three-year low.

    The Standard Chartered Hong Kong SME Leading Business Index showed the retail industry sub-index sliding to 43.1 for the third quarter from 49.9 in the preceding three months, marking the weakest level in three years.

    Meanwhile, the overall gauge of the SME Business Index stood at 49.6, up 0.6 point from the previous months but remaining below the 50 mark that separates positive and negative outlooks, the Hong Kong Economic Journal reported.

    The sub-index that reflects interest in hiring dropped below 50 to reach 48.5 for the first time, according to the survey which was conducted by the Hong Kong Productivity Council in association with Standard Chartered Bank Hong Kong.

    Kelvin Lau, senior economist for Asia at Standard Chartered, said slower growth in the number of mainland tourists and structural change in their consumption behavior have brought prolonged adverse impact on the city’s retail environment.

    He noted a 1.3 percent fall in mainland visitors as of the end of May this year, the largest decline since August 2009.

    However, DBS Bank Hong Kong economist Lily Lo said the actual impact is not so bad because 70 percent of retail sales in the city come from local consumers.

    Lo expects Hong Kong’s economy to expand at 2.5 percent rate this year, with retail sales likely to recover.