Retail News CRM

Tag: Hong Kong

  • Awards to recognise eCommerce merchants

    As Southeast Asia eCommerce merchants set benchmarks in a booming industry, their efforts are about to be celebrated with the launch of annual awards.

    Based in Kuala Lumpur, online shopping aggregator iPrice Group has launched the iPrice eCommerce Merchant Awards (iEMA) 2016 in partnership with eTail Asia, a service for eCommerce professionals, and Trusted Company, a review platform for eCommerce businesses in emerging markets.

    The first awards ceremony will be held in conjunction with the annual eTail Asia conference at Marina Bay Sands, Singapore, on March 8 next. The inaugural iEMA 2016 will feature country and regional winners in two categories – Most Popular eCommerce Merchant of the Year and Highest-Quality eCommerce Merchant of the Year. Merchants do not have to submit entries as all qualifying merchants are automatically enlisted.

    “Based on studies by Google and Temasek, the Southeast Asian eCommerce market is expected to see exponential growth from US$6 billion to about US$90 billion in 2025,” says iPrice Group CEO David Chmelar.

    “With new players in the eCommerce industry coming up every left, right and centre, it is imperative we highlight excellence in the sector in hopes to further inspire and encourage both existing and upcoming merchants to excel further in Southeast Asia.”

    Consumer choice

    Finalists and winners for the awards will be chosen by consumers via the iEMA 2016 microsite. People can vote only once, with January 31 the deadline.

    Meanwhile, in an effort to also recognise special initiatives by eCommerce merchants that might have escaped attention, a third category has been set up to highlight efforts by businesses that have undertaken projects to support a social or non-profit organisation. This will be judged by a panel of experts from the eCommerce sector with only one overall regional winner being chosen. The judging panel comprises Chmelar, Asia Venture Group CEO/founder Tim Marbach, Worldwide Business Research GM Danny Levy, Trusted Company co-founder/MD Frederick Krass, Google Vietnam head of marketing Anh Nguyen and 500 Startups managing partner Khailee Ng.

    Submissions for this award are being accepted from for both consumers and eCommerce merchants through the iEMA 2016 website.

    Voting is being accepted at the iEMA 2016 microsites for Hong Kong, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.

    iPrice Group is a Southeast Asian metasearch engine that enables shoppers to find products, compare prices and save. It seamlessly connects them to hundreds of eCommerce merchants in the region.

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  • Marie France Van Damme Opens Second Boutique in Hong Kong

    Marie France Van Damme Opens Second Boutique in Hong Kong

    Marie France Van Damme, the Hong Kong-based company known for its globally influenced line of luxury resort, swim, and ready-to-wear, announced today the opening of a seventh boutique in December 2016. Located in Hong Kong’s Elements shopping mall in Kowloon, the new store will mark Marie France Van Damme’s second retail location in Hong Kong, where the designer has lived for more than 30 years. The company opened its very first store in Hong Kong’s acclaimed International Finance Centre (IFC) mall in September 2013. 

    Situated on the second floor (Shop 2109) of the Elements shopping mall, within the International Commerce Centre (ICC), on 1 Austin Road West in Kowloon, the 700-square foot boutique will open alongside such brands as Gucci, Chanel and Prada and include Marie France Van Damme’s extensive luxury resort line. The ICC is Hong Kong’s tallest building and also houses The Ritz-Carlton and W Hong Kong. Incorporating Marie France Van Damme’s signature aesthetic, which blends subtle Asian influences and elegant simplicity, the boutique will feature teak wood, bronze panels, and embossed crocodile leathers with textiles and finishes that can be found in the designer’s home as well as her flagships in Hong Kong and London.

    The ICC’s waterfront location on Victoria Harbour, across from the IFC, suits its important role in the city in many ways. Feng shui teaches that mountains govern people, water governs wealth. The special placement of these skyscrapers is said to channel positive energy for health and prosperity. The shopping mall’s design, and its name, Elements, refer to the feng shui elements: wood, fire, earth, metal, and water. With a direct train linking Elements to Guangzhou, the new boutique will offer a unique luxury shopping experience in one of Hong Kong’s latest attractions on the Kowloon side of the city.

    As Marie France continues to expand her presence worldwide focusing on cities that not only inspire the designer, but also appeal to her sophisticated, jet-set clientele, Marie France Van Damme will celebrate the boutique opening with several special events in Winter 2016 and introduce a new in-store campaign photographed in Hong Kong by Herbert Ypma. The campaign will feature the new Resort 2017 collection, a return to the glamorous roots of resort wear with its muted palette of silver and nude, hand embroidery and opulent fabrics; from French lace to metallic-toned Italian weaves and featherweight Chinese Silks. 

    The company currently has 100 retail locations in some of the world’s most desirable places. Marie France Van Damme opened its first store in the fall of 2013 at the acclaimed International Finance Centre (IFC) in Hong Kong, a second in the summer of 2014 in Bangkok’s esteemed Mandarin Oriental, third and first European boutique in 2014 in London’s Brompton Cross neighborhood, and fourth boutique in the summer of 2015 in Phuket, Thailand. In November 2015, Marie France Van Damme introduced a fifth branded boutique in Singapore’s Takashimaya Shopping Centre and sixth retail location in Phuket in July 2016.

    Made in Hong Kong & South China

    Marie France Van Damme is proud of the production capabilities it has built for itself in the past 30 years. With couture and tailoring facilities in-house and embroidery produced across the border in China, every production piece is fitted and quality verified by Marie-France to ensure that the Marie France Van Damme label fulfills the highest standards in the industry.

    About Elements Shopping Mall/Hong Kong

    Offering over one million square feet of pure shopping experiences, the Elements shopping mall is located in Hong Kong’s tallest building the International Commerce Centre (ICC) on the Kowloon side of Hong Kong. A lavish world offering of shopping, dining, art and entertainment, Elements shopping mall is located next to Hong Kong’s most famous attraction Sky100 Hong Kong Observation Deck and takes a new approach to Hong Kong’s shopping environment and is themed after the five Chinese elements. The five elements are Metal (Luxury brands and world-class dining), Fire (Entertainment), Water (International cuisine), Earth (Fashion) and Wood (Health, Beauty and Lifestyle) whereas each zone is individually designed. Elements boasts a range of sought after brands, dining options, an ice rink and a 1,600 capacity cinema –  currently larger than any movie theatre in Hong Kong.

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  • Mainland role for Hong Kong retail

    Mainland role for Hong Kong retail

    While there are fewer of them, visitors from Mainland China are still vital to Hong Kong retail, says a new report from analyst Nielsen.

    It says Hong Kong has 42.8 million mainland visitors every year, representing 75 per cent of its total tourists and generating 35 per cent of retail sales.

    In the past 12 months, according to the 2016 Mainland Tourists Syndicated Report, 17 million mainland tourists stayed overnight in Hong Kong, with 80 per cent of them taking two trips a year on average and spending HK$20,000 (US$2578).

    Nielsen says that while the figures show Hong Kong businesses “still have a big chance to win if they find the right way to attract mainland travellers”, cross-border eCommerce opportunities offer them cheaper, easier access.

    “The incidence of buying foreign goods via a Chinese cross-border eCommerce platform is higher than overseas platforms and physical visits,” says Nielsen Hong Kong MD Angel Young.

    “Those overnight visitors, who are short in number but stronger in buying power compared with the day-trippers, is a key group to watch,” Nielsen’s report says business owners in Hong Kong might need to adapt their advertising and feedback mechanisms to create better customer experiences for digital-savvy mainland travellers.

    “They should focus more on the pre-travel period as more and more mainlanders are planning independent tours to Hong Kong, with 95 per cent gaining the necessary information from online travel agencies and 49 per cent from social media. Many can’t wait to post pictures on social websites when they are still shopping, to share both positive and negative comments and discount information.

    “Business owners also have to improve in-store customer service, as the research shows that 80 per cent of the mainlanders’ purchases in Hong Kong are for their own use rather than for friends.”

    The report recommends targeting two specific groups: so-called “super mainlanders” and culture seekers.

    The super mainlanders have a “huge shopping thirst”, says the report. They make up only 23 per cent of tourists from the mainland but account for 54 per cent of total mainlander sales, spending an average CNY46,902 (US$6810) each per visit.

    Culture seekers travel to Hong Kong for concerts, the food, sightseeing and exploring places they have seen on television shows. While not shopping-oriented, they still spend 10 per cent more than other mainland tourists.

  • A new modern lifestyle luxury fashion event comes to Hong Kong

    A new modern lifestyle luxury fashion event comes to Hong Kong

    We are proud to present the inaugural evening of “FELICIA”, a trendy new fashion evening in collaboration with Marc Jacobs and Moët & Chandon taking place  between PLAY and STUDIO clubs Hong Kong.

    “FELICIA” will be working in collaboration with Marc Jacobs for the launch of his new Resort 2017 collection in Hong Kong at a standout event. Conceived for local and visiting fashionistas, Felicia is specifically geared to these discerning customers needs providing a trendy, light hearted yet stylish evening.

    Generously sponsored by Moët & Chandon, who will be using this event as a showcase for their latest Moët Rosé Impérial Limited Edition With Flamingos, a  daring departure from their iconic bottle design. The evening is sure to dazzle as much as their new bottle.

    “FELICIA” was conceived to cater to the ever growing crowd of young trendy professionals working across the fashion, design and creative industries in Hong Kong. A place to meet, socialise and network “FELICIA” represents what it means to be a trendsetter in a modern age, uniquely positioned to attract the right crowd, we aim to please. Toungue-in-Cheek.

    As the first collaboration of many more to follow, we will celebrate the evening with smooth sounds from DJ Miya and DJ Patrick Rizarri, starting the evening off in the intimate STUDIO serving their signature cocktails before moving on as the party grows into the larger PLAY, which will be lavishly decorated by Marc Jacobs, inspired by their 2017 collection. Exclusive special edition Marc Jacobs gift bags will be given away to distinguished guests with table sales.

    Marc Jacobs is a well known international fashion designer originating from New York City, creating trendy wearable mens and womens clothes and accessories that often feature bright colours or fun motifs. #marcthenight

    Moët & Chandon is a french fine winery and a co owner of the luxury goods company LVMH. Creating some of the world finest champagnes since 1743, the company has  a rich history of heritage and luxury. #openthenow

    PLAY and STUDIO are two prestigious clubs and event spaces in Hong Kong with a focus on good music and the finest drinks the venues feature state of the art Matrix lighting and D&B sound equipment. #hifelicia

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  • McDonald’s China deal done

    McDonald’s China deal done

    A private-equity led consortium has been chosen to buy 20-year franchise rights for McDonald’s China and Hong Kong, Reuters is reporting.

    The successful bidder is a consortium led by private-equity firm Carlyle Group and Chinese conglomerate Citic Group, who will pay up to US$3 billion, according to an unidentified source who spoke with Reuters.

    A contract will likely be signed before Christmas.

    As reported in September, consortiums led by private equity firms Carlyle Group and TPG Capital were shortlisted as the bidding process narrowed the field. TPG had teamed with Beijing Capital Agribusiness Group, McDonald’s current China partner.

    Another private equity group, Bain Capital, had already dropped out.

    McDonald’s had previously said it was looking for long-term partners rather than private equity firms, which typically cash out after a few years.

    The deal covers some 2400 restaurants in China and Hong Kong. The 20 year franchise rights come with a 10-year renewal option.

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  • Hong Kong retail sales finally stabilising

    Hong Kong retail sales finally stabilising

    Hong Kong retail sales fell by the lowest rate in October in more than a year.

    Provisional figures released by the Census and Statistics Department (C&SD) show a decline of 2.9 per cent year-on-year, following a 4 per cent revised decline in September, (the original estimate was 4.1 per cent).

    “The year-on-year rate of decline in retail sales narrowed further in October, mirroring the similar performance of visitor arrivals in that month,” said a government spokesman commenting on the figures.

    “The stable job market and increasing household incomes also rendered support to local consumer sentiment.”

    The value of total retail sales in October was provisionally estimated at HK$36.1 billion. For the first 10 months of 2016 retail sales decreased by 8.9 per cent compared with the same period in 2015.

    Perhaps most significant was the clear bottoming-out of sales of jewellery, watches and clocks and valuable gifts after more than 18 months of heavy decline – the single biggest contributing category to the monthly retail sales data. Those sales edged down by a mere 0.1 per cent year-on-year in October.

    Electrical goods did most of the damage – down 21.7 per cent,while books and stationery were down 4.3 per cent and optical goods down 2.1 per cent. Medicines and cosmetics sales fell 1.8 per cent.

    On the positive side, the value of sales of commodities in supermarkets increased by 3.5 per cent and food, liquor and tobacco sales rose by 1 per cent. Footwear and accessories sales rose by 4.9 per cent and furniture and fixtures by 2.8 per cent.

    After netting out the effect of price changes over the same period, the provisional estimate of the volume of total retail sales in October 2016 decreased by 2.7 per cent. The revised estimate of the volume of total retail sales in September 2016 decreased by 3.8 per cent. For the first 10 months of 2016, total retail sales decreased by 7.8 per cent in volume.

    The government spokesman said that looking ahead, the near-term outlook for retail sales will still hinge on the performance of inbound tourism “as well as the extent to which local consumer sentiment will be affected by the various external uncertainties”.

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  • L’Occitane International profit jumps

    L’Occitane International profit jumps

    French skincare brand L’Occitane International’s interim net profit has jumped 33.9 per cent for its latest six months.

    Earnings for the period to September 30 climbed to €25.99 million (US$27.5 million) from €19.41 million year-on-year, while net sales edged up by 1.3 per cent to €551.7 million.

    Emerging economies Brazil, China and Russia were singled out as the top performing markets for the Provence-based company.

    “We are seeing accelerating store traffic in China and a tremendous growth in our sales on the Tmall market platform,” says L’Occitane Asia-Pacific president Andre Hoffmann.

    The mainland has become the company’s second-largest market after the US in terms of the number of outlets. Eight locations were launched in China in the first nine months of the year – the largest number across the brand’s nine major markets.

    Total sales from the mainland gained 5.4 per cent to €50.8 million from a year ago, accounting for 9.2 per cent of L’Occitane’s net revenue.

    More shops were opened in Japan and South Korea, but in Hong Kong sales plunged by as much as 11.2 per cent.

    Same-store sales overall fell 2.5 per cent, which the company blames on global economic political uncertainties. However, more positive signs included a strong performance on Tmall, as well as in the Black Friday sale, says CFO Thomas Levilion.

    L’Occitane eCommerce business grew by 6.8 per cent during the first half, making up 10 per cent of global retail sales.

  • Twin SME Fairs Open Today in Hong Kong

    Twin SME Fairs Open Today in Hong Kong

    Amid global economic challenges and intense competition, small and medium-sized enterprises (SMEs) need to upgrade and add value to their products and services to stay ahead. To provide SMEs with a range of supporting services and business opportunities and help them capture global opportunities, the Hong Kong Trade Development Council (HKTDC) is staging the 16th World SME Expo and the second edition of the Hong Kong International Franchising Show. The concurrent events opened today and continue through 3 December at the Hong Kong Convention and Exhibition Centre.

    “This year is the HKTDC’s 50th anniversary. Over the past half-century the HKTDC has always strived to create business opportunities for Hong Kong’s SMEs,” said Raymond Yip, Deputy Executive Director of the HKTDC. “As the finale events of the Council’s Golden Jubilee, the World SME Expo and the Hong Kong International Franchising Show are continuing the HKTDC’s tradition by providing a highly effective one-stop business platform for SMEs to capture worldwide opportunities. The International Franchising Show, in particular, is featuring more well-known brands and franchising concepts in its much-anticipated second edition.”

    Belt and Road Zone

    This year’s World SME Expo features more than 400 exhibitors from 35 countries and regions, many of whom are keen to learn more about the Belt and Road Initiative and the unprecedented opportunities that are set to emerge along the Belt and Road routes for companies around the globe. To help Hong Kong SMEs seize opportunities arising from the Initiative, the Opportunities Hall of the World SME Expo features a dedicated “Belt and Road Zone”. The zone has gathered more than 40 exhibitors from 19 Belt and Road countries, including those from Southeast Asia, South Asia, the Middle East, Africa and Central and Eastern Europe, to showcase their respective developments and partnership opportunities. It also spotlights the economic and trade cooperation zones and industrial parks in Malaysia, Laos, Indonesia and Belarus that have been set up with investment from the Chinese mainland. Visitors can learn about the investment environment, conditions and latest developments of these cooperation zones and industrial parks and identify new opportunities.

    At the event’s Solutions Hall, SMEs can find a range of practical business solutions, including m-commerce and e-tailing services, which are among the consumer trends shaping business models worldwide. Government departments and business chambers are also showcasing supporting services for different types of businesses.

    Close to 70 speakers share their business experience

    This year, the World SME Expo is organising more than 30 seminars and workshops. The “Innovation & Branding – The New Breed of SMEs” seminar series, co-organised with the Trade and Industry Department, features leading entrepreneurs discussing ways to develop products and services, adjust business operation models and forge successful brand transformation. Speakers include Eric Sun, Managing Director of Kinox Trading Limited, who is an expert in branding through O2O marketing, and Dr Alfred Ng, Chief Technology Officer of Suga International Holdings Ltd, who will speak about ways to harness the power of Internet of Things (IoT) technology to develop industrial ecosystems.

    The seminar series “Embracing The Latest Trend of E-Commerce”, gathers industry experts from Google, LinkedIn and Baidu to share insights into mobile apps, social media trends and digital marketing strategies.

    The HKTDC has also invited renowned entrepreneurs to share their business experience at the expo. Speakers include Quincy Wong, Chairman of Convoy Global Holdings Ltd; Vincent Tsui, Chief Marketing Officer of Next Digital Ltd; and Skye Chan, Founder of e-tailing shop Gift-ing.

    Hong Kong International Franchising Show

    Franchising is an established model of business expansion that is particularly common in the food and beverage, retail and other services sectors. With a growing number of middle class brand-savvy consumers, brands are choosing franchising as a way to expand their business. To cater to this trend, the HKTDC debuted the Hong Kong International Franchising Show last year to provide a one-stop platform for companies and entrepreneurs to find franchising opportunities, business partners and get expert tips on franchising.

    This year, the fair has gathered more than 100 exhibitors from Hong Kong, the Chinese mainland, Korea, Taiwan, the ASEAN region and Australia as well as Europe and the United States to showcase franchising opportunities in food and beverage, retail, education, health and beauty, and other personal and business services in three thematic zones: “Catering”, “Non-Catering” and “International”.

    Various well-known franchising brands have returned to the show, including Papa John’s Pizza, a US pizza chain; Trendyland Studio, which specialises in selling Disney products and providing Disney-themed photography services; and KamCha, a local Hong Kong food and beverage brand. New exhibitors include Sunshine 24, Hong Kong’s first 24-hour self-serve laundry chain; Cafe Cafe, a Canadian specialty coffee brand; Coerver Coaching, a football training system; InXpress, an international courier intermediary company; and Hong Kong’s School of Creativity.

    “Advice from the Wise” seminar series

    This year, the HKTDC has launched a new seminar series called “Advice from the Wise”. The series features industry experts from the US, Japan, Malaysia, Australia and the Chinese mainland sharing advice on how to enter the mainland market, new operating ideas for the catering sector and how to develop domestic services into franchises.

    At the “Round Table Meeting”, representatives from franchising associations in the Asia-Pacific region are set to analyse the latest franchising trends, including those in Singapore, Australia, Korea, Indonesia, the Philippines, the Chinese mainland, Taiwan and Hong Kong.

    Business matching services and networking events are arranged during the event to help visitors expand their networks. There is also a series of Brand Briefing Sessions for visitors to explore cooperation opportunities.

    Alongside the World SME Expo and Hong Kong International Franchising Show, two other concurrent events are underway, further enhancing business synergy for visitors. These events are the Business of Intellectual Property Asia Forum and InnoDesignTech Expo. Together, the four events provide a highly-effective one-stop value-adding platform for SMEs to capture global opportunities.

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  • Viu reaches 4m unique users in 1 year

    Viu reaches 4m unique users in 1 year

    PCCW has announced that its Viu OTT video service has reached 4 million unique users one year after launch.

    Viu is now available in Hong Kong, Singapore, Malaysia, India, Indonesia and the Philippines, offering a range of premium Asian video content.

    Viu’s content library includes Korean content from the top four broadcasters, as well as Japanese, Malaysian, Indonesian, Taiwanese, Hollywood and now Thai content in some markets. The company differentiates with fast local subtitling, and by producing its own entertainment news in collaboration with Korea’s K1 Headlines.

    During the third quarter of 2016, Viu recorded over 218 million views, with users consuming an average of 1.2 hours of content per day or 12 videos per week.

    “As OTT takes root and continues to develop rapidly in Asia, Viu continues to stride forward with the launch of its service in the Philippines, a vibrant market with over 30 million viewers who regularly watch videos online,” PCCW Media Group MD Janice Lee said.

    “We are confident that our Philippine launch will replicate the growth and success we have experienced in the region.”

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  • APTRA Insights Seminars attract more than 270 people

    APTRA Insights Seminars attract more than 270 people

    Over 270 people attended the 2016 Asia Pacific Travel Retail Association Insights Seminars, organised in collaboration with KPMG. The aim was to glean valuable insights into consumer behaviour and other issues relevant to the duty-free and travel retail community.

    In total, 160 delegates attended the research seminars in Sydney and Hong Kong on November 15 and 18 to learn from the data presented by APTRA, KPMG, m1nd-set and guest speakers TravConsult. A further 110 delegates attended similar seminars in Singapore and Mumbai earlier in the year.

    M1nd-set owner and CEO Peter Mohn (pictured below) shared insights into the shopping behaviour of the Asia Pacific traveller, with a detailed analysis of millennial travellers, their paths to purchase, information sources and technology usage in travel-retail. He revealed, for instance, that “web-rooming”, where consumers research online before buying in-store, has become more important than “show-rooming” (where they research in-store. but purchase online). He urged brands and retailers to ensure both shopping experiences are of a consistently high standard.

    KPMG International representative Willy Kruh shared research into the technology landscape in retail today and how to engage with the increasingly connected consumer. He looked ahead to a retail environment, which is likely to include drones, robotics, artificial intelligence, 3D printing and hydroponic growing techniques. He also provided an analysis of the millennial and generation Z consumers who dominate the market.

    Anson Bailey of KPMG China provided detailed observations of the connected consumer, specifically in China, and said that an omni-channel approach was essential. He commented that the next step is an omni-business model with seamless integration of all functions centred on the consumer. The marketplace will, he said, be driven by value, convenience and experience.

    At the Sydney seminar, attention homed in on the Australian retail market. In Hong Kong, the luxury market was the focus with additional input from Bernstein Investment Bankers Head of Luxury Goods Mario Ortelli.

    He described the size, breadth and breakdown of the luxury market and said they expected a more normal 3-4% annual growth rate over the next five years with increasing importance of Chinese consumers. These currently account for 30% of global luxury spend.

    Asian market tourism and retail specialists TravConsult’s Trevor Lee and Lilly Choi-Lee exposed various cultural keys for engagement with specific Asia/Pacific nationalities and advised delegates to aim for a positive customer experience. These keys may include staff members who speak Chinese regional dialects and other means of connecting with the traveller. They focused on China, Indonesia, the “dark horse”, and India, as examples of nationalities with distinct characteristics, but who share a passion for retail and tourism.

    APTRA Executive Officer Michael Barrett updated delegates on recent advocacy campaigns in which the association and its partner organisations have been involved over recent months and reported several notable successes.

    Delegates enjoyed mingling during the networking cocktails, sponsored by Brown-Forman and Pernod Ricard, when they were able to muse over information they had gleaned.

     

  • Hong Kong still suffering a retail slump, despite signs of recovery

    Hong Kong still suffering a retail slump, despite signs of recovery

    The retail downturn here is showing signs of recovery ahead of the holiday shopping season, but a further weakening of the Chinese yuan against the dollar could return to haunt the industry.

    Retail sales fell for 20 months in a row to reach 36.1 billion Hong Kong dollars ($4.65 billion) in October. However, the contraction in retail sales narrowed to 2.9% year on year, marking the smallest drop since July last year.

    Leading the decline were sales of electrical goods and photographic equipment, which plunged 21.7% on the year. Sales of luxury items such as watches and jewelry — popular among wealthy mainland spenders — edged down 0.1%, ending a streak of double-digit declines since September last year.

    Some brighter spots include supermarket sales, which were up 3.5% on the year, helped by stronger local consumption. But sales of clothing, as well as cosmetics and medicine, both dived back into negative territory, shrinking 5.1% and 1.8%, respectively.

    The government attributed the better-than-expected retail sales to improving tourist traffic. The number of mainland Chinese visitors to Hong Kong declined 3.5% year-on-year in October, against a 5% decline a month before. Overall tourist arrivals were down 2.4%, according to official statistics. “The stable job market and increasing household incomes also rendered support to local consumer sentiment,” a government spokesperson said on Thursday.

    Describing the October figures as “rays of hope” for the industry, Retail Management Association Chairman Thomson Cheng Wai-hung expected sales in the next three months to stabilize with the coming of high-spending holiday seasons such as Christmas and the Chinese New Year in late January.

    But Cheng said February will be a more critical time for the industry, referring to the impact of the yuan, which recently slid to an 8.5-year low. With the Hong Kong dollar’s peg to the stronger greenback, after the anticipated hikes in U.S. interest rates, “our goods would be more expensive for the mainlanders,” Cheng added. “It’s a big negative for us.”

    A positive dimension is that Hong Kong retailers that do sourcing in Asia are likely to benefit from the region’s weaker currencies resulting from the rate hikes, leaving them “more room” to counteract the currency impact with promotional discounts, Cheng said.

    Nonetheless, a turnaround might seem unlikely for some retailers. Hong Kong-listed French premium beauty brand L’Occitane saw Hong Kong as its worst-performing market across Asia-Pacific. Sales in the territory declined 11% on the year from April to September, little improved from the 12% slump reported in the same period in 2015.

    “Our Hong Kong business remains challenging, with a continued drop in mainland Chinese tourist traffic and heavy discounts offered by competitors,” said Chief Financial Officer Thomas Levilion on Tuesday, following L’Occitane’s announcement of a modest 1% increase in overall sales, which were helped by growth markets such as Brazil and Russia. With a net opening of 17 stores in Asia, the group shut down two stores in Hong Kong in the April to September period.

    Hong Kong mid-tier fashion retailer Bauhaus also closed four of its 80 stores at home and in Macau in the period, citing “stiff headwinds” in the retail market. Its net loss more than doubled to HK$60 million in the half year ended in September, dragged lower by an 18.5% fall in Hong Kong sales. The group slashed its headcount by nearly 14%, with the biggest reduction in Hong Kong.

    Bauhaus may also consider relocating some of its stores away from the prime shopping districts to trim costs. “More seriously, intensive discount-driven retail dynamics in recent years have gradually diminished the effectiveness of certain traditional promotional campaigns,” said Chairman Wong Yui-lam in a statement on Nov. 25, adding that there has yet to be “any significant indicator of a rebound in the near term.”

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  • Revenue grows for Fairwood Holdings

    Revenue grows for Fairwood Holdings

    Revenue grew 6.8 per cent for fast-food company Fairwood Holdings in its six months to the end of September.

    Fairwood’s positive result coincides with a strong performance from rival corporate restaurateur Cafe de Coral reported earlier this week.

    Fairwood’s interim results show revenue reaching HK$1.257 billion (US$162 million) compared with HK$1.176 billion for the corresponding period last year. Profit attributable to equity shareholders increased by 1.8 per cent to HK$103.8 million.

    Executive chairman Dennis Lo says the company has focussed on “elevating every aspect of the customer experience” while maintaining a happy culture for its staff members.

    “All of these have been the key in fuelling our satisfactory organic growth and driving the dynamism of our brand.”

    He says the Hong Kong restaurant business performed exceptionally, with revenue growing by 8.7 per cent. In response to customer support, the group opened seven more stores in Hong Kong during the review period.

    The group has also enhanced its signature products, launched new and seasonal dishes, and offered table service for dinner in all stores. “The service has set a new standard for the fast-food industry, and has been very well-received by the public,” says Lo.
    There are also plans to expand its specialty restaurant segment, including a second branch of its new Japanese-Western restaurant ASAP.

    Automation expanded

    To manage costs and improve efficiency the group has engaged in global sourcing, menu and production planning, and flexible work scheduling. It has also expanded the automation of its central food-processing plant.

    Despite a challenging business environment, profitability was maintained in China, with a store opening in Guangzhou during the first half. Expansion will be focussed on the residential districts of Guangzhou and Shenzhen.

    “Connecting to senior citizens has always been an integral part of our corporate culture,” says Lo. “To show our appreciation toward senior citizens for their past contribution to society, we have issued more than 50,000 discount cards since 2014 as part of our Care for Seniors program, together with many other initiatives.”

    To address the needs of senior citizens as well as the physically challenged, Fairwood has created stores that address their needs by offering priority seating, stick hooks, handrails in toilets and non-glare menu boards.

    “Aside from treating customers well, Fairwood believes it is equally important to foster a happy work environment,” says Lo. The group has established focus groups to collect staff members’ opinions and feedback, and offered customer-centric training programs, advancement opportunities and team-building activities. “Such efforts have contributed toward achieving higher staff retention across all levels.”

    At the end of September, the group had 128 stores in Hong Kong, including 121 fast-food outlets and seven specialty restaurants, plus 10 stores in China.

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  • Grana pop-up for Fashion Walk

    Grana pop-up for Fashion Walk

    Online fashion disruptor Grana will open a new pop-up store at Fashion Walk on December 9.

    The new Grana pop-up will be different to its Fitting Room by Grana store in Sheung Wan. The Causeway Bay store will target millennials with what founder Luke Grana describes as a “more personal brand experience” enticing customers to ‘see, feel and try’ before making their purchases in-store for later delivery.

    Described as “The Soft Spot – #granaworld experience”, the three key elements to the store are:

    • The See Wall, a gallery displaying how Grana’s luxury garments are made straight from the original source to the final construction of its Winter Collection & #ShowMeWhere images.
    • A Feel Bar, a sensory experience with different types of soft fabrics and textures;
    • A Try Space where shoppers can find the right fit and fabric offline before buying online.

    The eCommerce retailer has partnered with design and architecture brand Alt-254, to renovate its new 1668 sqft showroom to build the Grana experience and bring the online-to-offline concept to Fashion Walk. Grana will use the showroom space to introduce new fabric origin stories as a creative way to engage fashion conscious consumers on the story behind its new collections over the next four months.

    The new Grana pop-up on Paterson Street, is the brand’s sixth in Hong Kong.

    “With the increasing demand from consumers for quality basics in Hong Kong, the new showroom space is an opportunity for us to create a different retail experience for shoppers to have the Grana experience, learn about our minimalist collection, unique fabric stories and honest pricing model,” said Luke Grana

    “I’m very grateful for the support from Hang Lung Properties to pop-up in such an iconic location”, he said.

    Grana is a direct-to-consumer eCommerce fashion brand designing wardrobe essentials in-house, using the finest fabrics from around the world. Grana offers global shipping directly to 12 countries within two days.

    Headquartered in Hong Kong, Grana was founded by Luke Grana and Pieter Paul Wittgen in October 2014. To date, the startup has raised US$16 million in funding from 500 Startups, Alibaba’s Hong Kong Entrepreneurs Fund, Golden Gate Ventures and MindWorks Ventures.

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  • Meitu’s Hong Kong IPO to value China photo app maker at up to $4.5 billion

    Meitu’s Hong Kong IPO to value China photo app maker at up to $4.5 billion

    Chinese photo app and mobile phone maker Meitu Inc is set to launch an up to $735 million initial public offering in Hong Kong, IFR reported on Monday, citing people close to the deal. Meitu, better known for its apps that let users retouch and beautify selfies and other photos, is offering shares in an indicative range of HK$8.50 to HK$9.60 ($1.10-$1.24) each, added IFR, a Thomson Reuters publication. The IPO is slated to be priced on Dec 8.

    Meitu did not immediately reply to a Reuters request for comment on the IPO terms. The deal will value Meitu, which counts venture capital investors Qiming Venture Partners, IDG-Accel China and Tiger Global among its backers, at up to $4.5 billion, IFR said.

    The IPO will be a rare technology sector IPO in Hong Kong. Between one-quarter to one-third of the shares will be sold to cornerstone investors, IFR said. That would be much lower than some of the large new listings in the city, including the $7.6 billion IPO of Postal Savings Bank of China (PSBC) in September that had 77 percent of its deal bought by cornerstones.

    Large investments by cornerstone investors hurt liquidity for IPOs once the shares start trading, as the stock is locked up for a minimum of six months. The cornerstone money can also pressure the stock as the expiration of the lock-up period nears. China Merchants Securities, Credit Suisse and Morgan Stanley were hired as sponsors of the IPO.

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  • Asia’s premium restaurant festival returns to Hong Kong Central Harbourfront

    Asia’s premium restaurant festival returns to Hong Kong Central Harbourfront

    This second edition of Taste of Hong Kong is set to be even bigger and better with more restaurants, dishes, artisan producers and culinary experiences to savor.

    “It was no question for us that Hong Kong should be the home of Taste Festival’s first Asian location – the city’s exceptional food culture and wealth of culinary talent is internationally recognized as some of the world’s best. The success of the inaugural event, which attracted around 15,000 visitors, solidified Hong Kong’s position and status as one of the world’s top food capitals, proving the city’s impressive appetite and knowledge for top tables and world class cuisine. Seeing Hong Kongers embrace the festival with such a high level of excitement, we decided to make the second edition 25% bigger. Taste of Hong Kong 2017 will be raising the bar once again, bringing some popular favourites and introducing the latest and greatest local and international culinary talent and trends with more premium dishes, exclusive offerings and culinary experiences for taste buds to discover,” says Simon Wilson, Head of IMG Culinary Asia.

    “Many of our Standard Chartered clients enjoyed the 2016 gastronomic festival and we recognise that gourmet food is the way to the hearts of our clients. This is why we want to continue to bring this experience to them and are proud to celebrate our 2nd year of collaboration with IMG,” said Samir Subberwal, Managing Director & Head, Retail Banking, Hong Kong.

    A not-to-be-missed highlight in the social calendar for all Hong Kongers, the world’s greatest restaurant festival will bring Hong Kong’s most celebrated restaurants together to serve a premium menu of more than 50 signature dishes on tasting plates and iconic one-off festival creations. Hong Kong has no shortage of food variety with a significant number of openings every year, building a community of fine hospitality in the industry. New additions to the Taste of Hong Kong 2017 menu include dishes from Kaum at Potato Head, Mercato, Okra, Rhoda and ZUMA. Culinary stars who have had a taste and are returning for more this year are Amber, Arcane, Café Gray Deluxe, CHINO, Duddell’s, Tin Lung Heen, Tosca and Yardbird.

    Discerning Hong Kongers will enjoy access to world class cuisine across the festival as well as the opportunity to shop at The Gourmet Market and the chance to learn a couple of tricks at the Taste Theatre from the region’s finest chefs over the weekend. Festival-goers can take a break and mingle with like-minded foodies while listening to a line-up of live entertainment in one of the many lounge areas at the festival.

    No party is complete without the best champagne. After more than 15 years of work, Laurent-Perrier will unveil the quintessence of its own style at Taste of Hong Kong 2017. This is the first time the La Cuvée will be seen in Asia, chilled and ready for oenophiles to enjoy with the finest Hong Kong cuisine.

    Etihad Airways, the official Airline partner of Taste Festivals will be running their “Taste the world” competition between restaurants at the event. They will send one Hong Kong chef to compete alongside 12 other world-class chef’s in the final of the ‘Taste the World’ competition at Taste of Abu Dhabi in 2017.

    Taste Festivals is celebrated in 22 destinations including Paris, London, Rome, Dubai, Sydney and Sau Paulo.

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