Tag: Hong Kong

  • What Hong Kong should do to boost our tourism sector

    What Hong Kong should do to boost our tourism sector

    People from other places may find it hard to imagine, but Hong Kong, although such a small city, can accommodate more than 50 million tourists each year. Of course, most of them are from the mainland.

    But the government should think of how to overhaul our tourism industry and rebuild Hong Kong into a place for cultural nourishment and entertainment activities, rather than just a big shopping mall.

    Chief Secretary Matthew Cheung said more than 52 million tourists visited Hong Kong in the first 11 months of 2017. That’s a 3 percent increase from the same period last year.

    He revealed in his blog that visitors from the mainland and the rest of the world both registered increases. The number of overnight visitors went up by 5 percent in the first 10 months of 2017, from the same period a year ago.

    More than 70 percent of the tourists came from the mainland, while those from other countries including Taiwan, South Korea, Japan and Europe just accounted for 30 percent.

    Hong Kong’s tourism industry, which employs more than 280,000 people, remains heavily dependent on mainland tourists, even after the sector has been hit hard by Chinese President Xi Jinping’s far-reaching anti-corruption campaign since 2012, which caused big-spending mainland shoppers to stay away from the territory. 

    But there are signs they are returning to the city this year. In fact, tourists from across the border treat Hong Kong as their supermarket rather than a place for leisure activities, given the perception that the quality of products and level of consumer protection in the city are higher than those on the mainland.

    But this over-reliance on mainland tourists has distorted the development of local tourism as landlords turn shopping malls originally intended to cater for the needs of the local community into attractions for mainlanders. Such orientation has not only affected the daily lives of local residents but has also turned Hong Kong into a shopping mall city, with malls housing similar retail shops and restaurants offering the same goods and services in all districts from Central and Mong Kok to Sheung Shui and Tung Chung.

    Chief Executive Carrie Lam’s administration understands the challenges facing the tourism industry, but it has not veered away from its old strategy of pouring money into hardware rather than building the city’s “soft power” to highlight the city’s uniqueness as a former British colony and China’s global gateway.

    One of the government’s biggest mistakes in trying to boost the city’s tourism industry is its decision to invest another HK$5.45 billion in Hong Kong Disneyland for its expansion plan. The investment only benefited Walt Disney while Hong Kong is left holding an empty bag as other Disneyland resorts in the region, i.e., in Shanghai and Tokyo, proved to be tough rivals.

    The government should instead promote its own uniquenes through a light show featuring our old districts.  We could, for example, try to bring back nostalgic memories of the old Hollywood Road in Central, showcasing the old office building of Wah Kiu Yat Po newspaper, the Dr. Sun Yat-sen Historical Trail, and other aspects of our storied past.

    While those buildings no longer exist in the real world, we could make use of new technologies such as augmented reality or virtual reality that allow tourists to visit the past by using their mobile phones or other smart devices.

    Perhaps, the government can partner with the newspaper society to come up with gimmicks like giving away old copies of Chinese newspapers – with the tourists’ pictures published on the front page – as souvenirs as well as a reminder of our rich history of press freedom.

    Such a model can be replicated in other different districts of Hong Kong to highlight the colorful tapestry of our culture and society that is older than the British colonial period.

    Another initiative to revive our tourism industry is to sponsor international sporting, cultural and entertainment events. The West Kowloon Cultural Zone could play a leading role in boosting our tourism industry by promoting Hong Kong as a cultural and entertainment hub.

    The government said it will come up with a comprehensive development plan for our tourism industry with new attractions and offerings. It’s about time we did.

  • Duty Zero by CDF off to strong start in Hong Kong

    Duty Zero by CDF off to strong start in Hong Kong

    CDF-Lagardère (CDFL), the joint-venture from China Duty Free Group (CDFG) and Lagardère Travel Retail, which won the contract to operate the duty-free liquor and tobacco stores at Hong Kong International airport (HKIA) has revealed initial performance of its Duty Zero by CDF-branded stores has been better than expected.

    As reported, the six Duty Zero by CDF stores, spanning 1,631sq m were launched by CDFL on November 18. According to the joint-venture, business performance in the first 10 days has been booming with sales revenue higher than expected.

    Purchasing strengths

    The succssful opening is believed to be due to the purchasing strengths of China Duty Free Group (CDFG) and Lagardère Travel Retail, which have been fully exploited in the commodity procurement process. This has led to a wider range of Chinese liquor and tobacco and imported liquor and wine collection being offered to consumers.

    CDFL also suggested the implementation of the most “competitive pricing strategy” in the Asia/Pacific airport market contributed to its early success; liquor and tobacco products are now 15%-30% lower in price.

    Another key factor was the decision of CDFL to equip HKIA with an international management and operation team. This has ensured the smooth and successful operation of the newly opened stores.

    CDFG and Lagardère Travel Retail are also understood to have provided support and assurance to HKIA in relation to commodity mix, supply of goods, pricing strategy and personnel support. This was after CDFG adopted a similar strategy in terms of commodity procurement and pricing following its triumph in the recent Beijing Capital International airport tender.

    In addition, support from parent company China National Travel Service Group, the largest travel service provider in China, on elements such as passenger flow and integrated marketing also helped, according to the retailers.

    “Injected new confidence and expectation”

    When interviewed by Chinese media, China National Travel Service Group vice general manager Li Gang said: “The operation of HKIA represents a milestone and touchstone for the development of China’s duty-free industry.”

    Following its triumph in the HKIA tender, CDFG president Chen Guoqiant vowed to do everything possible to deliver a “satisfactory result” for HKIA and its customers.

    Hong Kong Airport Authority is understood to be please with pleased with the initial performance of the liquor and tobacco stores, which have “injected new confidence and expectation in the international development of China’s duty-free companies”, according to CDFL.

    Over 3,000sq m

    Meanwhile, two Duty Zero by CDF stores, have opened in the East and West lobbies targeting domestic passengers from airlines such as Air China and Hong Kong, European and American passengers respectively.

    Ultimately, eight duty-free liquor and tobacco stores covering 3,400sq m will be introduced, including the “most complete single malt whiskey mix among Asia Pacific airports” and “most complete Asian alcohol and beverage product mix among global airports,” according to CDFL.

    A Hennessy counter and store featuring Hong Kong afternoon tea and local food will also open, with all stores set to be operational by June 2018 and present a “more beautiful” image to consumers.

  • Hong Kong should vie to become R&D hub

    Hong Kong should vie to become R&D hub

    The Hong Kong government will step up efforts to promote innovation and technology. This was the message from Chief Executive Carrie Lam Yuet-ngor at the grand final of Alibaba’s startup competition Jumpstarter 2017 held in Hong Kong last week.

    Lam promised that her government is serious and determined to do this job well. But Jack Ma, founder and executive chairman of Alibaba, said entrepreneurs can’t wait for government policy, because when the government starts to move, it’s probably too late and the chance is no longer there.

    I think Ma is only half right. Startups should never let themselves be led by government policy.

    Big companies typically try to bargain with the government to obtain more benefits and they are often very well-funded. It’s very difficult for startups to compete with these big boys.

    Startups should hence look for alternative paths and niche opportunities instead.

    For example, Alipay and WeChat Pay went directly for the retail market as soon as they entered Hong Kong. Local startups can hardly do the same thing.

    If the Hong Kong government is keen to innovate with new technology, it should attract top global tech firms to develop R&D in Hong Kong.

    Currently, Facebook, Google, Microsoft, Tencent, Alibaba and Baidu have set up R&D centers in either Singapore or Taiwan thanks to generous packages offered by their governments.

    Hong Kong should focus more on luring these top tech giants to establish their R&D centers here. That would spearhead the city’s technology development.

    If the government is willing to invest in technology research, it would have greater bargaining power when negotiating with these giants.

  • Il Bisonte plans to open shops in Asia

    Il Bisonte plans to open shops in Asia

    Italian leather goods label Il Bisonte, owned by UK investment fund Palamon since 2015, plans to open a directly owned shop in Hong Kong as a way into China.

    Founded by Wanny Di Filippo in 1970, the company expects to close this year with revenue exceeding €27 million (US$32 million), says CEO Sofia Ciucchi, who was appointed in January. This would be up 27 per cent on last year’s revenue.

    As well as eyeing Asia, the brand has growth plans closer to home. It will open an 800sqm showroom next month on the top floor of Florence’s historic Palazzo Corsini, with a launch event celebrating the fact that Il Bisonte’s entire output is produced with a 30km radius of the city. The showroom will also house the company’s offices, while manufacturing and product development remain in Pontassieve.

    At the end of next month Il Bisonte will open a six-month pop-up store in Rue St Honore, Paris, and its two permanent Parisian stores will be later renovated.

    Overseas plans include a possible second store in London and an opening in the US, most likely New York.

    Another main focus for the label is e-commerce, to which end it will expand its manufacturing and logistics infrastructure next year, building a 2000sqm warehouse in Pontassieve.

  • Shilla Duty Free opens six new shops at Hong Kong International Airport

    Shilla Duty Free opens six new shops at Hong Kong International Airport

    The Shilla Duty Free has opened six new retail outlets at Hong Kong International Airport (HKIA).

    The retailer sucellfully bid on the perfume and cosmetics and fashion accessories concessions earlier this year. Shilla says the new license marks it as the first operator to simultaneously secure duty free perfumes and cosmetics concessions across the hub airports of Incheon International, Hong Kong International and Singapore Changi.

    With the opening of the HKIA stores, Shilla has also announced its new vision for experiential retail – Beauty & You. Following the commencement of operations this December, the outlets will be transformed in phases into the new identity.

    Shilla’s Beauty & You concept is designed to combine “innovative store designs with a wide array of products, excellent service and exciting activities to delight guests at every stage of their shopping journey, giving a new innovative approach to travel retail in an airport”. Designed to represent how modern customers shop, the new Beauty & You store layout will incorporate both branded counters and non-branded areas, as well as immersive engagement zones.

    New brands

    With the grand opening of the new concept stores slated for the summer of 2018, the number of brands featured across the six stores will increase to over 200.

    “We’re extremely excited to expand The Shilla Duty Free network to one of the busiest airports in the world,” said Alice Woo, managing director of Shilla Travel Retail Hong Kong. “The airport served more than 70 million passengers annually and 1,100 aircrafts daily in the past 12 months. Hong Kong’s proximity to other Asian countries and mainland China also makes HKIA a powerful and promising hub for duty free sales. With the upcoming launch of Beauty & You, we hope to redefine the airport retail experience and customer journey through personalised service, interactive and engaging environment in one of the most robust travel markets in the world.”

  • Caelum Greene, the first multi-brand fashion store in Hong Kong

    Caelum Greene, the first multi-brand fashion store in Hong Kong

    Featuring mannequins stretched out in graceful yoga poses, Caelum Greene is hard to miss on Hollywood Road.

    Hong Kong’s first multi-brand athleisure and lifestyle fashion store soft-opened in June 2016, attracting a clientele of health-conscious customers who love looking and feeling good.

    After only 1 year of operations, Caelum Greene is launching its e-commerce site on 5 January 2018.

    Designed and curated for the modern-day mindful customer, the brands offered readily merge wellness with fashion. With two elegant yet cozy, eco-friendly locations in Hong Kong, Caelum Greene is looking to extend its ethos to a wider audience with its upcoming online presence.

    Serving as the bridge between the modern day gal and sustainably conscious designers, Caelum Greene’s online presence will continue to showcase its outstanding ethos and dedication to a better world.

    Caelum Greene carries brands offering versatile, high-quality fabrics made with the heart and mind. These include high-tech athleisure brands Daquini, MICHI, Monreal London, as well as fashion and lifestyle brands Tach Clothing and Filippa K. Caelum Greene is committed to actively giving back to the community, and its online experience will be no different.

    Continuing its partnership with Asia’s largest sustainable fashion NGO, Redress, Caelum Greene will donate a percentage of the online sales to the organization for every order placed. The aligned missions and collaboration will give clothing a second chance at life, filtering it through the system to be upcycled or recycled. The collaboration aims to prove that together, we can reduce waste in the fashion industry.

    Together, the online platform and brick-and-mortar stores will allow Caelum Greene to maximize its positive impact.

    Founder Charlotte Tsuei emphasizes that “it is important to me that wherever Caelum Greene goes, it brings positive and meaningful change to the community.”

    Charlotte Tsuei describes Caelum Greene as “an alternative to shopping more sustainably without compromising on style and quality.” The brands at Caelum Greene are carefully curated based on their style, quality, value, uniqueness and their core ethics similar to Caelum Greene. “We hope to able to move the needle, even just ever so slightly, towards a more sustainable future for fashion.”

  • Hong Kong International Airport Christmas Big Rewards

    Hong Kong International Airport Christmas Big Rewards

    To celebrate the upcoming Christmas holiday, Hong Kong International Airport (HKIA) is launching a series of shopping promotions, including delightful rewards of HKIA cash coupons worth up to HK$15,000.

    Instant Rewards Promotion

    From 20 December 2017 to 2 January 2018, travellers can redeem and enjoy rewards of cash coupons worth up to HK$15,000 when making purchases by electronic payment at HKIA. Passengers making purchases with their UnionPay cards can enjoy additional rewards.

    HKIA’s mascot will be dressed up in full Christmas outfit and walk around in the terminal, ready to meet, greet and take snapshots with travellers to spread the festive spirit.

    Shopping and Dining Offers

    During the promotional period, HKIA will also collaborate with retailers to provide a whole host of fabulous shopping and dining offers. Travellers can get more details simply by scanning the QR code on promotional materials or by visiting our website:
    https://www.hongkongairport.com/eng/shopping/special-offers.html

    Free Delivery Service

    Travellers spending HK$1,000 or more in a single transaction at HKIA can enjoy complimentary local delivery service. Free delivery service to Mainland (for clothing, bags and accessories only), Japan, South Korea, Indonesia, Macao, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam is also offered to travellers who spend HK$2,500 or more in a single transaction. For details, please check with the staff at the retail outlets.

  • “Invader” First-ever Collaboration with Shopping Mall for Charity Project

    “Invader” First-ever Collaboration with Shopping Mall for Charity Project

    Renowned French urban artist, Invader attacked Hong Kong once again this September and brought us a new series of 32 impressive mosaic artworks. And for the first time he invaded Harbour City, the largest shopping mall in Hong Kong, installing 18 of them on various walls around the mall. Apart from the signature “space invader”, other themed-designs like “Anchor”, “Mermaid”, “emojis” and more match with each location and echo the spirit of Harbour City.

    Harbour City was surprised by the Invasion and successfully contacted Invader afterwards. Harbour City is honoured to invite him for an official collaboration on premium development and charity fund raising. It is Invader’s first-ever cooperation with a shopping mall and he tailor-designed the limited edition umbrella by adapting one of the new mosaic designs in Harbour City, the giant “Anchor” at Ocean Terminal Rooftop Carpark.

    Invader’s cool and playful style is demonstrated on the long umbrella. Silver grey “Anchor” is monogrammed on the charcoal black umbrella of which four of them are in bright yellow of the original artwork inspiring everyone. Printed on the umbrella strip is the response of Harbour City to his Invasion, “Dear Invader, your artworks are safe with us. Harbour City” to show the support and enthusiasm of Harbour City on art development.

  • Flagship Project of Lai Sun Group Novotown Welcomes New Strategic Partners

    Flagship Project of Lai Sun Group Novotown Welcomes New Strategic Partners

    Novotown, an integrated project with a mix of cultural and entertainment attractions currently under development in Hengqin Zhuhai by Lai Sun Group, today announced a slew of new strategic partners at a ceremony attended by Zengqing Luo, Deputy Director of the Administrative Committee of Hengqin New Area, and representatives of concept brands and media.

    Novotown’s strategic partners include China Mobile Group Guangdong Co., Ltd. Zhuhai Branch, CITIC Bank, Trans-Island Limousine Service Ltd. and travel partners Guangdong Gongbei Port China Travel Service Ltd., Guang Zhilv (GZL) International Travel Service Ltd. and Century Holiday International Travel Group. These partners will work closely with Novotown to craft and build a quality community in the Greater Bay Area.

    ‘Novotown is Lai Sun Group’s flagship project in the Greater Bay Area which aligns ideally with China central government’s Greater Bay Area development plan.’ said John Tse, Chief Executive Officer of Novotown. ‘We’re delighted that so many quality partners are coming onboard to support our grand vision for one of the most immersive and participative tourism and entertainment destinations in China, fostering high technology, travel, culture and creativity to benefit economic development of the area.’

    He added, ‘Novotown has great potential to become the landmark of Hengqin. Together with other lifestyle elements and infrastructure, I am confident that Novotown will become a quality living, leisure and creative destination for both domestic and international audiences.’

    China Mobile unveiled its plans to launch its first concept store in Hengqin at Novotown to elevate retail experience of its guests. In addition, the brand will also introduce a ‘smart mall’ concept to Novotown – by logging-in to the shopping mall’s Wifi system, customers can get access to comprehensive services, such as parking payment, restaurant and locker reservation, locating stores and receiving coupons, via app or website. The system also grants tenants access to certain customer data, which could allow them to better craft their marketing strategies.

    Meanwhile, CITIC Bank intends to open a branch at Novotown, providing financial services for the residents, tenants and travellers in the area.

    Trans-Island Limousine Service Ltd. will provide point-to-point shuttle bus services between Hong Kong and Novotown via the new Hong Kong-Zhuhai-Macao Bridge to encourage customer traffic, while Guangdong Gongbei Port China Travel Service, Guang Zhilv (GZL) International Travel Service and Century Holiday International Travel Group will also help to promote multiple travel products available at the destination to international, mainland China and Hong Kong tourists.

    Wenqiang Hu, Director and General Manager of Guangdong Gongbei Port China Travel Service Ltd., said: ‘We are very excited to be the strategic partner of Novotown. As travellers are more sophisticated these days, Novotown’s partnerships with world-renowned brands create a diverse range of themed entertainment experiences, which together with their comprehensive infrastructure, are the key elements that help us attract these travellers in such keen competition. We are happy to work closely with Novotown and promote it as a vibrant and creative lifestyle community in the Greater Bay Area.’

    In addition to strategic partners, a range of China’s popular concept brands was a part of the ceremony today. They included Super Species, Sports Infinite, and Hutaoli Music Restaurant & Bar.  

    Adjacent to Macau, Novotown is positioned as a cultural and creative incubator. Benefiting from China (Guangdong) Pilot Free Trade Zone and Special Economic Zone policies, Novotown has been actively developing a wide range of leisure facilities which helps elevate the quality of life in the Greater Bay Area. With the addition of other confirmed partners including Lionsgate, National Geographic, Taipei Wellness Clinic and Resort, Real Madrid Football Club, Porsche and a world-class institute, the Innovation Leadership Academy Hengqin managed by Harrow International (China), Novotown is gearing up to become a vibrant and creative lifestyle community in the Greater Bay Area.

  • HKCYIA Features in “Hong Kong Maritime Week 2017 Career Expo”

    HKCYIA Features in “Hong Kong Maritime Week 2017 Career Expo”

    Hong Kong Cruise & Yacht Industry Association (HKCYIA) took part in the “Hong Kong Maritime Week 2017”, a major annual event of the maritime and port industries in Hong Kong. Organized by the Maritime and Port Board in collaboration with the Shipowners Association and the Maritime Museum, HKCYIA was a major participant of the event with the setting up of an exhibition booth and the presentation of a series of talks at the “Maritime Career Expo”, a featured event of “Hong Kong Maritime Week 2017”. Held on November 25, the event provided youths and the general public with extensive information about cruise careers and industry developments. With the aim of introducing career opportunities in the maritime sector for youths, the “Maritime Career Expo” featured several sharing sessions given by captains, crew pursers and examiners, industry professionals as well as marine students, during which they shared their seafaring adventures, interview skills and industry information with the audience.

    As the event speakers, Laura Escobar and Joe Li, Purser Trainers of HKCYIA, both gave talks on the title of “How Interesting is Living and Working on board a Cruise?”. They presented the living and working conditions of cruise careers, job requirements and interview techniques, which were well received by participants, with enquiries about cruise careers and their prospects.

    In addition, 15 shipping and tertiary educational organizations set up booths at the Expo to provide information about educational opportunities and career pathways in the maritime industry. Participating organizations included Anglo-Eastern Univan Group, China Classification Society, Dalian Maritime University Alumni, Shanghai Maritime University Alumni, The Hong Kong Polytechnic University, Institute of Chartered Shipbrokers, Hongkong International Terminals Limited, Hongkong United Dockyards Limited, Maritime Professional Promotion Federation, Hong Kong Seamen’s Union, Maritime Services Training Institute, The Hong Kong Shippers’ Council, The University of Hong Kong School of Professional and Continuing Education (HKU SPACE), TurboJET, and Wah Kwong Maritime Transport Holdings Limited.

    The 8-day “Hong Kong Maritime Week 2017” offered nearly 50 activities put together by 57 local and overseas industry bodies, academic institutions and professional organizations for participants from the industry and general public. Event highlights included the anchor event “7th Asian Logistics and Maritime Conference”, business conferences and forums, visits, industry networking gatherings, competitions and exhibitions. The event was aimed at showcasing the strength of the local maritime industry, promoting Hong Kong as a preferred base for operating maritime business and enhancing the community’s awareness of the industry and its contributions to the economy.

     

  • INFINITI LAB Hong Kong 3.0 primes startups for success in the future of retail

    INFINITI LAB Hong Kong 3.0 primes startups for success in the future of retail

    INFINITI Motor Company, Ltd. and Nest, a leading venture capital firm and innovation partner, concluded the nine-week INFINITI LAB Global Accelerator 3.0 today with a Demo Day. The seven startups, with two from Hong Kong and the remaining five from Canada, Germany, Mexico, Sweden and the US, pitched their business to more than 100 investors and key retail partners in hope of securing partnerships and funding to propel their businesses to the next phase. Among the investors and partners were retail companies DFS, Nielsen, Hysan, Shanghai Tang and Bluebell Group who attended to hear the startups’ plans to develop technologies that enhance the customer journey for ‘The Future Consumer’.

    INFINITI LAB is a global program that works with startups around the world to address locally
    relevant challenges. During the INFINITI LAB Global Accelerator 3.0, seven startups were chosen from more than 130 applications across the globe to participate in the program, including two from Hong Kong. During the nine-week program, each startup has been exposed to established investors in Asia, and benefited from an intensive business coaching and mentoring program.

    Dane Fisher, General Manager, Global Business Transformation & Brand, INFINITI Motor Company

    “At INFINITI we are constantly striving to innovate to deliver the most personal and rewarding
    customer experience. As INFINITI LAB continues to grow globally, so does our opportunity to
    develop great solutions for our customers and lead innovation in the mobility space. The INFINITI LAB 3.0 is not only helping us to find technology partners to develop the future retail experience, but also inspiring us to become a more agile organization”, said Dane Fisher, General Manager, Global Business Transformation & Brand, INFINITI Motor Company.

    Lawrence Morgan, Nest CEO said,” We are extremely proud to be part of the founders’ entrepreneurial journeys. The unique strengths and solutions the cohort have will truly transform the retail tech landscape for the future consumer, today.”

    The seven startups that successfully completed the Global Accelerator 3.0 were invited to INFINITI’s global headquarters from five different countries. Among the startups involved in the program were Rover Parking from Canada, invited to join following their involvement in the Toronto INFINITI LAB accelerator program earlier this year. Other startups include Wyzerr (USA), actiMirror (Hong Kong), ManoMotion (Sweden), Cove (Hong Kong), Synapbox (Mexico) and Thinqs (Germany).

    As a result of this program, Thinqs has validated their online-to-offline search model in the Asian
    marketplace, and have gained interest from a number of Hong Kong retailers. actiMirror and Rover Parking have secured investment funding connections, and Rover Parking is in discussion to partner with INFINITI to expand their parking network in Canada.

    Cove is in negotiation with property development companies in Hong Kong to launch a pilot project together with INFINITI using INFINITI vehicles to provide a shared mobility solution; while both Synapbox and Wyzerr have already piloted their products within INFINITI and
    have developed global service packages to attract wider corporate partnerships.

    ManoMotion has partnered with V777, an INFINITI LAB 2.0 alumni startup to develop
    a revolutionary prototype – combining advanced hand gesture recognition with Virtual Reality to
    create a concept for the future of digital showrooms. V777 technology was used to launch INFINITI’s all new QX50 at the recent LA Motorshow. ManoMotion is also in discussion to explore longer term product collaboration with INFINITI.

    INFINITI LAB Hong Kong 3.0_Startups

    Ross Garvie, Head of INFINITI LAB said; “This year, focusing on “The Future Consumer” we worked with startups looking at data analytics, shared parking, AR displays, gesture recognition and facial recognition. Each startup was selected as they share INFINITI’s vision to improve the future of retail and enhance the customer journey”.

  • Hong Kong shopping centre rents predicted to rise

    Hong Kong shopping centre rents predicted to rise

    Hong Kong retail rents are expected to inch up in 2018 according to projections by Savills.

    In a media briefing on Tuesday, Savills senior director of research and consultancy, Simon Smith, predicted a rise in prime retail shop rents of up to 3 per cent, following a decline of 2 per cent this year.

    “The domestic economy is supporting demand as unemployment is low and consumer confidence is high as incomes grow and house prices hit new records,” Smith said.

    “Retail sales are beginning to show signs of life while mainland demand is also returning after two to three years of downward adjustment.”

    At the end of last year, Smith forecast a prime street retail rent decline of between 5 per cent and 10 per cent, but despite some high-profile rent renegotiations, they held up.

    Smith’s data is based on ‘spot’ rents which are different to the headline-grabbing rent reductions achieved by some retail groups in Central and Causeway Bay during this year.

    “When you read about a 50 per cent rent cut, that is usually the renewal of a three-year lease. My rents are ‘spot’ rents and the 2 per cent is this year alone.”

    However, Smith expects shopping mall rents to slip over the next year, giving the narrowing gap with strip-shops. After a decline of just 1 per cent this year, he is tipping a fall of up to 5 per cent next year.

    In terms of sales of retail real estate, Smith predicts an increase in prices of up to 5 per cent next year following a decline of 4 per cent this year, which was well below the 5 to 10 per cent he expected in late 2016.

  • Handsome by Hyundai heading for China

    Handsome by Hyundai heading for China

    Handsome, the fashion unit of South Korean retailer Hyundai Department Store Group, has signed a deal to help accelerate its move into the Chinese consumer market.

    An agreement between its fashion label The Cashmere with Hong Kong’s retail/brand-management/distribution firm ImagineX Group involves supplying five coat styles to Club Monaco outlets in China.

    ImagineX represents such brands as DKNY, Jo Malone and Salvatore Ferragamo, and has more than 250 points of sale throughout Asia including Singapore and Taiwan.

    Thehandsome.com

    Handsome has previously taken its System and System Homme brands abroad. It has also clinched a deal with Artifacts, a boutique store in Taiwan that has six outlets in Taipei and Taichung. Earlier this year, the two clothing labels were picked up by department stores and shopping malls in China as well as the Galeries Lafayette department store in Paris.

    Handsome entered the Chinese market early this year by partnering with Hangzhou Zhiheng Industrial.

    Founded in 1987, Handsome was bought by Hyundai Home Shopping Network in 2012. It owns a string of fashion labels including Mine, System and Time.

  • Line Friends to open Pop-Up stores in Seoul City

    Line Friends to open Pop-Up stores in Seoul City

    A Line Friends pop-up will open at luxury speciality store BoonTheShop in Seoul on Saturday.

    Running until January 14, the Korean character brand’s outlet will introduce its latest merchandise, BT21. The range includes dolls, cushions, fashion items, limited-edition postcards, posters and bag charms – all based on a set of characters created by K-pop boyband BTS and the Line Friends team.

    LINE FRIENDS

    The same line will also start selling at Line Friends’ New York flagship on the same day via a “BT21 Zone”, and at other stores in Hong Kong, Japan, Taiwan and Thailand, as well as online early next year.

    BT21 was initially launched as stickers on Line App with more than 17 million downloads and 200 million Twitter exposures. The first Line Friends’ collaboration with artists, the BT21 range joins signature characters such as Brown, Choco and Cony.

    LINE FRIENDS Unveils BT21 Merchandise at Its Flagship Store in New York (PRNewsfoto/LINE FRIENDS)

    Line Friends has 91 stores in 11 international markets.

  • DHL and Air Hong Kong sign 15-year block-space agreement

    DHL and Air Hong Kong sign 15-year block-space agreement

    DHL Express extended its Air Hong Kong (AHK) agreement, which grants DHL Express access to AHK’s overnight air services. The new agreement extends to 2033.

    As part of the deal, DHL Express and AHK formalized a reorganization announced in July, under which majority owner Cathay Pacific will buy out DHL Group’s 40 percent stake in AHK. Under the terms of the new agreement, DHL will also purchase AHK’s eight A300-600 freighters, which will be leased back to AHK. The deal goes into effect on Jan. 1, 2019.

    Once the deal takes effect, DHL will initially have the same access to AHK’s capacity granted by its current agreement, but over time will have more access to flexible aircraft deployment and route selection to support DHL’s growth in the Asia-Pacific region.

    “With Hong Kong’s merchandise exports between January and September 2017 growing by 8.5 percent compared to last year, we’re keenly aware of the upward momentum that the region’s trade lanes are facing,” said Ken Lee, DHL Express Asia Pacific CEO. He added that the deal offers the “greater flexibility” DHL needs to handle any unpredictable changes or demand increases in the region.

    In addition to the AHK deal, DHL Express recently announced an expansion of its Central Asia Hub at the Hong Kong International Airport. The expansion adds 8,000 square meters and improvements including automated x-ray inspection machines and material handling systems. The expansion is scheduled for Q1 2022 completion.