Tag: Hong Kong

  • YSL opens pop-up store to celebrates Valentine’s Day

    YSL opens pop-up store to celebrates Valentine’s Day

    YSL launched a limited store for Valentine’s Day 2019 in Central, Hong Kong, featuring on WhatsApp sticker, photo booth, and games. Obviously, pink and cosmetics are many girls’ favourite. So pink lovers will fall in love with YSL latest limited pop-up store in Central as the store is fully decorated in pink. Not only visitors will have the opportunity to get the cosmetics products, but they will also be able to take Instagrammable photos in front of different props and beautiful background.

    To participate in this event, visitor only need to register online to get a designated QR code and go during the reserved time slot. In addition to taking pretty pictures, visitors can also try YSL new collection of perfumes, blush, and lipsticks.

    One of the most attractive activities is to tailor-made unique WhatsApp stickers.

    In addition, making WhatsApp stickers, printing photos or buying any products in the pop-up provides points for playing the YSL’s clip doll machine. The higher the points, the more opportunities, so you can clip away YSL cosmetics products and take them home.

    The pop-up closes its doors just after Valentine’s Day.

  • L’Oreal Asia Pacific sales reported soars

    L’Oreal Asia Pacific sales reported soars

    L’Oreal Asia Pacific sales soared by a staggering 24.1 per cent on a like-for-like basis last year. Asia was the beauty behemoth’s fastest-growing market with all divisions of the business winning market share from rivals in the region. “The dynamism of Chinese consumers, combined with the good performance of premium brands and rapid growth in several other Southeast Asian markets as well as in travel retail, were the [region’s] main growth drivers,” the company said in an earnings statement.

    Singles Day in the fourth quarter especially boosted sales in China, along with the acquisition of Stylenanda in June.

    L’Oreal Asia Pacific sales, driven by China, overtook L’Oreal’s North America business, with sales exceeding €7 billion.

    Globally, L’Oreal achieved sales of €26.9 billion (US$30.3 billion) last year, an improvement of 7.1 per cent on a like-for-like basis and 8 per cent at constant exchange rates. Net profit reached €3.89 billion euros, an increase of 8.8 per cent.

    L’Oreal’s chairman and CEO Jean-Paul Agon said the results represented the company’s best year of growth since 2007, achieved in a beauty market which had “accelerated significantly” last year.

    All divisions achieved growth, with the standouts being L’Oreal Luxe and Active Cosmetics, which both recorded double-digit sales increases. In the Luxe division, the larger brands led the way, with Lancome sales crossing the €3 billion threshold. The Active Cosmetics division achieved its highest growth for more than 10 years.

    Consumer products sales, led by L’Oreal Paris and Maybelline New York, achieved solid growth and professional products a “modest increase” thanks to a significant acceleration in the final quarter, the company said.

    A growing investment in e-commerce is paying off, with sales online up 40.6 per cent last year, now accounting for 11 per cent of group sales.

    And travel retail broke the €2 billion barrier, increasing by 27.1 per cent.

    L’Oreal reported its gross margin increased significantly and, even after strong investments in research, innovation, and business drivers, its operating margin set a new record at 18.3 per cent of sales.

  • HMV saved by Sunrise Records, but some stores will close

    HMV saved by Sunrise Records, but some stores will close

    Canadian firm Sunrise Records has emerged as the buyer of collapsed music chain HMV, beating competition including Sports Direct owner Mike Ashley. The firm will buy 100 stores out of administration, securing 1,487 jobs. But 27 stores will close, resulting in 455 redundancies. Sunrise Records chief executive Doug Putman said he was “delighted to acquire the most iconic music and entertainment business in the UK.”

    No price was given.

    Canadian entrepreneur Mr Putman, 34, bought the retail chain Sunrise Records in 2014. He previously bought HMV’s Canadian business in 2017, expanding his small chain into a national operation with 80 outlets.

    Mr Putman is also President of Everest Toys, the largest toys and games distribution company in North America. He said that HMV was a “fantastic, heritage brand”. He also said the chain would be looking to stock more vinyl records, in response to customer demand.

    HMV owner Hilco, which took the company out of its first administration in 2013, has blamed a “tsunami” of retail challenges for the latest collapse.

    These include business rate levels and the increasing use of streaming services to deliver music and movies.

    HMV sold 31% of all physical music in the UK in 2018 and 23% of all DVDs, with its market share growing month by month throughout the year.

    However, the music industry expects physical entertainment sales to shrink by another 17% this year.

    Will Wright, partner at KPMG and joint administrator said: “We are pleased to confirm this sale which, after a complex process, secures the continued trading of the majority of the business.

    “Our immediate concern is now to support those employees that have unfortunately been made redundant.”

  • Kendall Jenner signed agreement with Penshoppe

    Kendall Jenner signed agreement with Penshoppe

    Global fashion retail brand Penshoppe has unveiled the latest addition to its roster of international ambassadors – 23-year-old world’s highest-paid supermodel and one of the most followed celebrities on social media, Kendall Jenner. The model initially appeared on Penshoppe’s DenimLab campaign in 2015, and is now headlining the brand’s Spring Summer 2019 Campaign with Zayn Malik, Paris Jackson, Nam Joo Hyuk and Sandara Park.

    “As we move from strength to strength, we couldn’t think of a better addition to our growing list of global ambassadors”, said Golden ABC’s VP for brand management Jeff Bascon. “It’s good to have you back, Kendall!”


    Penshoppe has more than 400 locations across Bahrain, Cambodia, Indonesia, Saudi Arabia, Myanmar, Thailand, Vietnam and the Philippines. The brand is available online in Singapore, Malaysia, Hong Kong, Taiwan and Indonesia.

  • Giorgio Armani open first pop up store at DFS Hong Kong

    Giorgio Armani open first pop up store at DFS Hong Kong

    Giorgio Armani Beauty is starting the year of 2019 strong by collaborating with DFS on celebrating Chinese New Year. In January, Giorgio Armani Beauty launched its first Chinese New Year pop-up stores at T Galleria Beauty By DFS, Causeway Bay and T Galleria By DFS, Canton Road respectively. Iconizing the brand’s 3 star products – the legendary Lip Maestro, the iconic My Armani To Go Cushion Foundation and the new bestselling fragrance – Sì Passione, the pop-up stores reflected Armani’s commitment to modernity whilst celebrating the traditional festival with the Asian consumers.

    A UNIQUE BEAUTY EXPERIENCE Visitors were able to indulge themselves in a unique Armani Beauty experience under the Chinese New Year festivity. They discovered New Year fortune and recommended Giorgio Armani Beauty products through the in-store digital app, try their luck on the app and receive attractive gifts upon purchase; and completed their memorable experience by getting the exclusive gift set of the 3 star products featuring My Armani To Go Cushion Limited Edition “Cushion Couture”. Customers also enjoyed professional make up consultation by Giorgio Armani Beauty Face Designers.

  • New shopping ambassadors at Hong Kong International Airport

    New shopping ambassadors at Hong Kong International Airport

    Shopping for travelers will be even easier at Hong Kong International Airport (HKIA) with the introduction of Airport Shopping Ambassadors. The Airport Shopping Ambassadors are stationed at key locations within the airport’s retail areas. They are well acknowledged on shopping and dining offerings at HKIA, providing a friendly and personalized service to travelers. The ambassadors can provide helpful advice or last-minute shopping recommendations, as well as hot-picks, latest promotions and dining options from a wide range of global and local cuisine.

    Travelers can also receive personalised shopping and dining itineraries online, simply by filling in the Airport Shopping Ambassadors enquiry page on HKIA’s website https://www.hongkongairport.com. After completing the online request section, together with flight schedule and other information, travelers will be able to receive the ambassadors’ recommendations within 48 hours.

    HKIA is an international and regional aviation hub connecting about 220 destinations around the world, including 50 Mainland cities. HKIA achieved record-breaking passenger throughput of 74.7 million in 2018.

  • Starbucks Hong Kong partners with Deliveroo to launch delivery services

    Starbucks Hong Kong partners with Deliveroo to launch delivery services

    Starbucks Hong Kong and Deliveroo Hong Kong, the online food delivery company, announced an exciting partnership to launch a pilot delivery service starting on 21st January 2019. The service will first roll out at 18 participating stores across Hong Kong Island, Kowloon, and the New Territories with plans to expand the program to more stores over time.

    To celebrate the launch of Starbucks delivery service, customers can enjoy free delivery from January 28 to February 3 – an exclusive offer for Hong Kong customers to try out this new offering.

    Also, new Deliveroo customers can enjoy HK$25 discount on each of their first four Starbucks orders on Deliveroo with the code “STARBUCKS100”.

    As the first retailer in Hong Kong to launch mobile ordering feature using its mobile payment technology, Starbucks has continued to embrace the relentless pursuit of digital innovations to meet the high expectations and demand for convenience in Hong Kong.

    The introduction of delivery services with Deliveroo will elevate Starbucks Fourth Place experience, the digital and mobile touchpoint that connects Starbucks with its customers. The delivery service is expected to reach over 30 stores in second quarter, offering convenience to more customers in Hong Kong.

    Deliveroo, the largest food delivery platform in Hong Kong, is growing and this year expects to work with 4,000 riders and 6,000 restaurants in Hong Kong. The company is intent on expanding its offer to consumers, in particular with partnerships such as this. Based on its exclusive data insights, Deliveroo knows that customers are increasingly searching for hot beverages and coffee on the platform. Searches surged by 185% in 2018 while orders for coffee and tea increased by a staggering 245%. Therefore, Deliveroo and Starbucks will go together brilliantly.

    As part of Deliveroo’s corporate offering, Deliveroo for Business, for companies across Hong Kong, Deliveroo will offer bulk Starbucks coffee deliveries to meet the rising in breakfast, lunch and teatime coffee orders in Hong Kong’s business districts. Given the rapid growth of Deliveroo for Business to date, Deliveroo believes this will be incredibly popular amongst Hong Kong workers. As part of this, 25 major businesses with more than 100 employees have already expressed interest in the new Starbucks-Deliveroo offer.

    The pilot delivery partnership allows customers to order and customize some of their favorite Starbucks beverage* and food items to their door step, including the option to modify size, number of espresso shots and dairy selections. We target to ensure every order meets the unparalleled experience and quality that customers are accustomed to in Starbucks stores.

    “We are continuously looking for ways to evolve and innovate our features that are relevant to our customers, thus we are happy to partner with Deliveroo who is as passionate as we are in food and beverage, to offer trusted delivery services and bring ease to our customers,” said Andrew Hui, General Manager, Starbucks Hong Kong & Macau. “The pilot delivery program is a seamless addition to our commitment to explore digital solutions, and the perfect complement to our in-store offerings, further extending the holistic Starbucks experience for customers to enjoy wherever they may be.”

    Brian Lo, General Manager of Deliveroo Hong Kong, said: “Deliveroo is constantly looking for new ways to ensure customers have access to amazing food and drink whenever and wherever they want it, and so we are delighted to work with Starbucks. This partnership will again show people that, on Deliveroo, every option and every occasion is catered for. Deliveroo is growing across Hong Kong and across the world, and with exciting new partners and new offers such as this, we are looking forward to expanding our reach even further. This collaboration will be available for our corporate customers on Deliveroo for Business, for workers who want that vital coffee.”

  • Li & Fung appoints Joseph Phi as new group president

    Li & Fung appoints Joseph Phi as new group president

    Li & Fung has appointed Joseph Phi as the company’s Group President. As Group President, Joseph will lead the company’s Supply Chain Solutions operating groups, including Business Development. He will continue as President, LF Logistics and to serve on the Board of Directors of Li & Fung. He will report to Spencer Fung, Group CEO.

    Joseph has a strong track record at tLFhe company having organically grown its logistics business over the past decade. He has nearly 20 years’ experience with the company and is well positioned to assume this important leadership role.

    Joseph joined Li & Fung in 1999 and was previously executive director of Integrated Distribution Services Group Limited from 2004 until its acquisition by Li & Fung in 2011. He is Chairman of GS1 Hong Kong and a Director of its Management Board and is a Member of Supply Chain 50.

    He is an advisory committee member of Hong Kong Trade Development Council’s Logistics Services and honorary advisor of the Asian Logistics and Maritime Conference. He also serves as an advisory committee member of Eye Fund, a charitable institution in HK.

    Joseph graduated magna cum laude from the University of The Philippines (UP) with a Bachelor of Science degree in Industrial Engineering and attained a Master of Business Administration degree with top honors also from the same university.

    He is a 2011 recipient of UP College of Business Administration Distinguished Alumnus Award and 2013 recipient of UP Industrial Engineering Alumni Award and UP Alumni Engineers Global Achievement Award for Logistics. Between 2014 and 2018, he was an Adjunct Professor in the School of Business and Management at The Hong Kong University of Science and Technology.

    Joseph takes over from Marc Compagnon, who served as Group President and Executive Director of Li & Fung Limited from July 2014 and has moved to the Fung Group as Senior Advisor while remaining on the Board of Li & Fung Limited as a Non-Executive Director.

    Fung Group is the major shareholder of Li & Fung, whose core businesses operate across the entire global supply chain for consumer goods including sourcing, logistics, distribution and retail.

    Spencer Fung, CEO of Li & Fung said, “Our goal is to build the supply chain of the future to help our customers navigate the digital economy and to improve the lives of one billion people in the supply chain, and I am confident Joseph is the right person to build on the solid foundation that Marc has built and to take this to the next stage of development.”

  • Retail meets art in HK for Chinese New Year

    Retail meets art in HK for Chinese New Year

    Next week it Chinese New Year. It officially begins on February 5th, 2019, and ends on February 19th. This year will be the year of the Pig. It is the most important festival for Chinese people, so the city is fully decorated with festive installations. The retail world celebrates it with decorations and promotions. In Hong Kong, all shopping malls have already unveiled their gigantic installations.

    In the financial heart of the city,  the floral pinwheels have turned IFC into the Garden of Fortune.

    Dedicated to providing memorable and engaging experiences for guests beyond shopping and dining, the Chinese New Year is no exception for IFC mall as it presents The Garden of Fortune, a splendid installation featuring pinwheels to welcome good fortune and embrace new changes along with incorporating floral elements for a contemporary spin.

    From 26 January to 17 February 2019, shoppers can visit the interactive display and enjoy music performances to ring into an auspicious new year.

    Pinwheels have long been a symbol of luck with fascinating roots in Chinese culture. Traditionally associated with welcoming wealth, pinwheels are constructed using a variety of bright colors to greet the god of fortune, which are believed to bring prosperity and blessings to both homes and businesses. Playing on the Chinese tradition that pinwheels attract good luck, The Garden of Fortune is embellished with this auspicious symbol.

    The pinwheels are designed in the shape of peach blossoms, peonies and begonias – flowers that represent prosperity and fortune in Chinese culture – to empower guests with positive vibes as they walk through the Garden of Fortune.

    Upon entering the installation, guests are invited to play an interactive pinwheel game to start the new year with blessings to share and bestow upon friends and loved ones. ifc mall has collaborated with young local calligrapher, Rita Lee, to create downloadable “fai chuns” to share with family and friends after completing the game.

    Lee started learning Chinese calligraphy at the age of 6 and has nurtured her talent with over 20 years of experience. She is known for blending different styles to create art that balances the tradition of Chinese calligraphy with contemporary flair. “I’m excited about this partnership with ifc mall as it allows me to use my craft to extend blessings to all Hong Kongers who visit the Garden of Fortune,” says Lee. “The installation’s fusion of traditional pinwheels with modern floral elements also reflects the same juxtaposition in my style of calligraphy.”

    Pacific Place has built “Where Fortune Takes Flight” to welcome the Chinese New Year 2019. Queenie said that her design ideas come from the traditional Chinese New Year Candy box and chocolate from her childhood. Thus, they became the patterns of the kites, flying in the shopping mall. Queenie used vibrant colors and energetic brush strokes to draw on the kites, symbolizing a colorful and fruitful new year.An exquisite spring garden filled with blossoming flowers and over 60 flying kites, symbolising “Where Fortune Takes Flight”. Exclusively designed by Queenie Law, the kites soar to the highest heights and spread Chinese blessings throughout the mall and into the new year ahead.

    In Tsim Sha Tsui, Harbour City will welcome the Year of the Pig with the “HAPPIG New Year” celebration, featuring a seven-metre tall gigantic “Wishing Treasure Bowl” at Ocean Terminal Forecourt from 25 Jan to 19 Feb 2019.

    The treasure bowl is structured with multiple frames, on which colorful ropes were tied delicately to create geometrical festive patterns from cherry blossoms to gold coins.

    The contemporary design is a stylish take on the Chinese New Year classic, wishing everyone joy and fortune for the Year of the Pig.

    Newly introduced this year is an interactive wishing experience, inviting visitors to win a lucky pouch by taking part in a mini game and donating HK$20 near the“Wishing Treasure Bowl” installation.

    Each lucky pouch contains a Good Fortune Card with predictions for the coming year, and a “Wishing Gold Coin” which can be deposited into “Make a Wish Piggy Bank” for making a wish. The coin will roll through a lucky tunnel connecting the piggy bank to the gigantic “Wishing Treasure Bowl”, bringing fortunate blessings to everyone for the New Year.

     

  • Place to reate your own watch

    Place to reate your own watch

    The Mills officially opened at the end of 2018, becoming a new landmark that combines historical and cultural retailing, attracting a number of local brands in Hong Kong. The Mills is a revitalization project from Nan Fung Group scheduled for completion and actually completed in 2018. A destination consisting of a business incubator, experiential retail, and a non-profit cultural institution may be relatively unfamiliar to Hong Kong people; yet The Mills’ vision and history is a purely Hong Kong story.

    It witnessed the manufacturing heyday in the 1960s, and now it carries the legacy towards a future of applied creativity and innovation. Visitors can explore the continuity of an authentic Hong Kong story, where themes of textile and industry are woven into experiences of innovation, culture, and learning.

    Eoniq successfully raised funds for launching a project a few years ago on the Indiegogo crowdfunding network, which is for customers to make their own personalized unique watches at The Mills. Through engaging in different workshops such as designing automatic tourbillon, printing dial and burning blue steel pointer, customers may experience the watchmaking process.

    In recent years, Swiss watchmaking brands have opened shops all over Hong Kong, however, the Hong Kong local watch industry has also had a glorious history during the 1950 – 1980.

    Although local watchmaking has already faded out, Li Junguo (Quinn), one of Eoniq’s founders, decided to set up his own brand with two partners in 2014.

    “I started building up the brand after I left my work at McKinsey since 2011. It is because I am interested in watchmaking, so I find some fine caliber factory online, and  contact the French freelancer to help me ordering from France as the people from Swiss watch factory usually only speak in French,” he said.

    After buying the caliber from the factory, the brand will assemble the watch according to the custom design of the guests.

    In fact, Eoniq had opened stores in Sheung Wan and Tsim Sha Tsui K11 before, but the shop could hardly afford a monthly rental fee of 1 million HKD in Tsim Sha Tsui.

    In terms of online sales, Eoniq’s customer profile is diversified and located in different regions, namely, Taiwan, Malaysia, Australia, the United States, and Europe.

    “The Mills was interested in Eoniq, knowing that we were assembling the watchmaking on our own, and asked if we could make the watchmaking process transparent so that the visitors could see the process of watchmaking. Thus, we have been given a space on the ground floor at The Mills, which became our current flagship store.”

    For the Automatic Tourbillon design workshop, customers can engrave their name, special phrase, signature or pattern on the watch. With the assistance of a watchmaker, guests can assemble the watch by themselves.

    Guests can also add personal elements to the dial, such as handwritten words or patterns, and there is a traditional printing machine to allow customers experiencing the traditional printing method on the surface of the watches.

    “Our brand is getting bigger, so I hired more masters in watches, including a watchmaker who had previously worked in Omega. In addition to allowing our guests to design their own watches, we want to let more people understand the value of watchmaking.”

  • Hong Kong retail rents tipped to turn

    Hong Kong retail rents tipped to turn

    Hong Kong retail rents are tipped for a modest rise of up to 5 per cent this year according to a research report from real estate advisor Savills. But the authors, Nick Bradstreet, MD, head of leasing and Simon Smith, senior director, research & consultancy, noted that this year has already got off to a positive start. “Landlords and retailers are wary given current uncertainties surrounding trade, stock market valuations, a weak renminbi and rising interest rates among other factors,” said Bradstreet. “But early indications are that the year has got off to a positive start.”

    Smith added: “The well-observed shift towards higher same day mainland visitor numbers and lower per capita spending continued last year and we believe that this year can expect more of the same.”

    Both prime street-shop and shopping-centre rents remained flat last year and rental growth had all but ground to a halt by the fourth quarter due to a weak sales performance, the report said.

    However, the new cross-border bridge and rail link led to a 40.3 per cent year-on-year rise in same-day mainland visitor arrivals in November to 3 million. The number of mainland tourists actually rose during the first 11 months of last year by 14 per cent.

    Smith said the increasing number of same-day visitors and a weak renminbi meant lower per-capita spending and unchanged retail rents by year end.

    “Retail sales growth decelerated to only 1.4 per cent in November, the slowest growth rate registered since June 2017; yet most retailers reported a better-than expected performance over the Christmas holiday period.”

    Thanks to the strong tourist demand, cosmetics and personal care products retailers are expanding rapidly in popular tourist districts such as Causeway Bay, Tsim Sha Tsui and Mong Kok. Food and beverage stores benefited, too, the report said.

    On the contrary, the fourth quarter saw zero rental growth over the previous quarter in prime street shops in most districts, except Tsim Sha Tsui (down -0.9 per cent quarter on quarter). Whilst shopping malls in Kowloon were largely responsible for the marginal decrease with a negative 0.3 per cent change over the third quarter, mall rents remained unchanged on Hong Kong Island and in the New Territories.

    “As a total of 2.3 million sqft of new supply will come on stream this year – the highest level since 2006 – the market fundamentals are expected to remain relatively stable.

  • The most expensive place to rent an office in the world

    The most expensive place to rent an office in the world

    Central, Hong Kong’s frenetic business and retail heart, crammed with skyscrapers, swanky malls and luxury hotels, is the most expensive district for renting office around the world. Although the office rent in Hong Kong’s Central district is already the world’s most expensive, and there are more and more companies moving out of the city centre to cheaper locations, prices are likely to remain sky high, or even higher.

    Hong Kong is the key financial centre in Asia, and Central is still the most important financial district in the city. Thus, the office rent in Central district is predicted to increase continuously.

    According to Raymond Chow, the Executive Director for Commercial Property at Hongkong Land, Central’s largest office landlord, “Central is still the home to the city’s most influential institutions, such as the Securities and Futures Commission, The Stock Exchange of Hong Kong and Hong Kong Monetary Authority, the connectivity of Central remains a magnet for leading players” he added,  “It is in a way that other districts cannot compare.”

    In June 2018, Central was ranked the most expensive office location in the world for the third year by global commercial real estate firm CBRE, thanks to the strong demand from mainland tenants, who would like to expand their business outside China and seeking Grade A office space.

    Office space in Central now costs USD $306 per square foot, 30 per cent higher than the second highest area, London’s West End, at US$235 per square foot.

    Of the top 10 most expensive premium rental locations, six were in Asia, including Shenzhen, Beijing, Tokyo, and Delhi.

  • Greater China helps ease Tod’s Group European challenge

    Greater China helps ease Tod’s Group European challenge

    Luxury fashion retailer Tod’s says Greater China sales rose 3.2 per cent last year, to reach €218.7 million. Releasing annual sales results, the Italian-based company said Greater China sales growth accelerated during the fourth quarter, especially on the mainland which now accounts for 60 per cent of its Asian turnover. Hong Kong and Macau also performed well, although the company did not disclose detailed figures for the two territories.

    Tod’s consolidated global sales reach €958.2 million at constant exchange rates, which was essentially the same as for 2017. Tod’s and Roger Vivier were affected by currency fluctuations.

    Retail sales reached €622.3 million, with wholesale revenue comprising the rest. However same-store sales fell by 3 per cent, due to declines across Europe which erased the China growth. In Italy, consumers were spooked by political and economic uncertainties and greater Europe by lower sales to tourists.

    “Last year’s sales results were substantially in line with our expectations, despite the growing international economic and political uncertainties,” said chairman and CEO Diego Della Valle.

    By label, Hogan sales rose 1.8 per cent, Tod’s and Roger Vivier held steady and Fay slipped 3.4 per cent.

  • Revealing Subway Hong Kong’s new strategy

    Revealing Subway Hong Kong’s new strategy

    Subway Hong Kong has chosen a university campus to launch the first of its new-generation store concepts in Greater China. The Fresh Forward restaurant decor marks a modernisation for the iconic made-to-order sandwich chain which with a new development office in Hong Kong and Macau is achieving same-store annual sales growth of more than 20 per cent. The new development office management team, comprising CEO Christel LeBrun, GM Jamie LeBrun and director Mark Rutherglen have more than 50 years of Subway experience between them.

    Subway Hong Kong’s new Fresh Forward restaurant opened on level 3 of City University’s Lau Ming Wai Building in late August. It takes up a 900sqft site and seats 30 guests, making it one of the largest Subways in Hong Kong and Macau. The larger footprint is representative of the new development office’s strategy to develop the brand on a larger scale, unlike the smaller kiosk-style locations opened in the past.

    During the grand opening the store served more than 1300 customers, fulfilling 200-plus orders an hour during peak lunch periods. “Last year, we focused a lot of energy on better service, fresher products and cleaner restaurants,” said Christel LeBrun. “The way in which our sandwich artists and managers handled the volume on opening day is a testament to how far the operations have come in 12 months.”

    Subway Hong Kong expects that by the end of this year half of its outlets across the two territories will be remodelled to the new concept which Jamie LeBrun describes as “Subway stepping into the 21st Century”.

    Features of the new look include digital and interactive menu boards that have a more product-focused design and are controlled centrally via a content-management system.

    New fresh-vegetable and bread displays show customers how the chain’s products are prepared fresh in store each day.

    Brightly coloured furniture and eye-catching graphics on the walls create a more welcoming and “fresh” environment for dine-in customers, who can enjoy the convenience of power points for laptops and USB charging ports to recharge smart devices.

    “Our customers want good food, better value and clean restaurants. And we’re giving them that,” said Jamie LeBrun.

    Michael Kyprianou, director of development with Subway Hong Kong and a part owner of the City University store, describes the new concept as “an absolute game changer”.

    Future Fresh Forward stores in the two cities will be set up to cater better to online ordering.

    “With the move towards services like Deliveroo and Foodpanda, we have redesigned the back of house so where we have a prep bench, you can lift it up and you’ll have a salad bar so you can assemble orders at the back of the store for delivery,” says Jamie LeBrun. “So when orders are coming in online during peak hours, someone will be out the back preparing orders and not interfering with the in-store trade.”

    Jamie LeBrun says some Hong Kong Subway stores can earn up to 25 per cent of their sales online. “That’s how big the online space is. When it’s raining, no one wants to go out and pick it up. People have got short lunchtimes too – no one wants to go stand in line.”

    Menu evolution

    A major part of Subway’s success last year was a revamped menu which Jamie LeBrun says will continue to evolve to reflect local tastes and feature ‘limited-time offers’.

    “Product innovation is the cornerstone of future success for our business.”

    An avocado promotion in stores last year with three popular combinations – Roast Chicken and Avocado, Bacon and Avocado and Turkey, Bacon and Avocado – achieved sales 200 per cent higher than forecast.

    This year, Subway Hong Kong promises a new product every six weeks, including limited time offers such as Black Pepper Beef, Shrimp and Avocado and Rotisserie Chicken sandwiches.

    “Currently in restaurants you will find a Japanese Curry Chicken that offers a great warm flavour for these colder months,” says Christel LeBrun.

    Late last year, the company expanded the core menu offer adding coffee to new restaurants through a partnership with Kolb, offering fair-trade coffee beans and fresh milk in hot or cold drinks made in store.

    This year, Subway Hong Kong plans another menu-centric initiative called ‘restore the core’ – the first part of this initiative will be an analysis of existing items and optimising the menu based on what is popular and what can be removed. The second part is then to improve on the products left on the menu.

    Also this year, Subway will be more engaged in the community by sponsoring major ‘active lifestyle and sporting’ events around the territory to boost its profile and make consumers aware of its new outlet design and menu.

    “We are looking at a few events that complement the Subway brand to partner with this year, we are eager to get back into the event space and engage more with our customers,” says Jamie leBrun.

    On World Sandwich Day the company plans to launch a promotion with proceeds donated to those in need via the St James Settlement in Hong Kong. “A number of restaurants were doing 130 sandwiches an hour, every hour for eight hours on the day last year,” says Christel LeBrun.

    Franchisee search

    The development office has several new outlets scheduled to open during the next six weeks, including a new Fresh Forward outlet on Hollywood Road, Central.

    New franchisees are being sought to to help expand its store network now the brand has revamped its decor and upgraded its menu.

    “We are looking for new franchisees that are team players to help grow the brand in the right way,” explains Christel LeBrun.

    “People that are looking to own their own business or be their own boss. Training is provided so it doesn’t matter what background they come from. We have doctors, lawyers, graduates, teachers, parents and everyone in between,” adds Jamie LeBrun.

    Four new franchisees joined last year with another 10 sought this year with the longer-term goal to have 100 outlets in the two territories within 10 years.

  • Mainland China, US and Japan fuel I.T Group sales growth

    Mainland China, US and Japan fuel I.T Group sales growth

    I.T Group sales slipped in the company’s home market, but the fashion retailer is achieving high growth in Mainland China, the US and Japan. Unaudited sales data for the three months to November show an 8.5 per cent year-on-year improvement in Japan and the US and 6.8 per cent growth on the mainland. Hong Kong and Macau sales slipped by 1.8 per cent in the same period.

    Figures for the nine months to November are even better in the US and Japan, up 11.1 per cent, while sales growth in the home market reached 4.8 per cent and on the mainland 1 per cent.

    I.T Group operates its own brands, including Chocoolate and 5cm, concept stores Izzue and Double-Park; international brands it has local licences for including Kurt Geiger and Camper; and A Bathing Ape, which the company rescued from Japanese owners in 2011.

    Chairman Sham Kar Wai said “complex macroeconomic conditions” affected the business in all three regions during the third quarter.

    “Our Hong Kong and Macau operations registered negative same-store sales growth as a result of multiple typhoons, and weaker consumption appetite during the period. In contrast, our Mainland China business delivered positive same-store sales growth, and our Japan and  the US regions continued to progress on a positive trend.”

    He said the group continued to execute measures to safeguard its gross margin, including holding back discounting.

    “However, enhancements to gross margin was overshadowed by the negative impact of the depreciation of currencies of our merchandise purchase. As a result, gross margin decreased during the period.”

    Sham Kar Wai said the company has been even more cautious about the overall operating environment over the last few months, as the recent escalation of trade dispute between Mainland China and the US has cast “greater uncertainties on the future economic outlook”. “Moreover, the warm weather in Hong Kong and Macau may further weigh negatively on the consumer spending momentum across the region.”