Transcript Experience sharing: Hong Kong - a profitable platform for

Experience sharing: Hong Kong a profitable platform for
entrepreneurs
Mr. Yu Pang Chun
Director & Deputy General Manager
Yue Hwa Chinese Products
Emporium Limited
1.The importance of the services economy in Hong Kong
and the significance of the retail industry to Hong Kong’s
economy.
• The service sectors generated 86% of Hong Kong’s Gross
Domestic Product (GDP) in 2000. Without the public
sector, services still accounted for about 74% of GDP
• The wholesale, retail and import/export trades, restaurants
and hotels was the largest group among the service sectors,
contributing for 26.3% of GDP in 2000
• Up to the third quarter of 2002, the total retail sales value
of Hong Kong, dropped 24% when comparing with 1997
2. Negative factors affecting retail industry
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Unemployment
Deflation (Property value dropped 68%)
Consumers buying in Shenzhen
Lack of consumer confidence
Hong Kong Retail Sales 1995-2001
Hong Kong Retail Sales
250.00
200.00
150.00
HKD Billion
100.00
50.00
Year
1995
1996
1997
1998
1999
2000
2001
Yue Hwa
1.Brief introduction of Yue Hwa’s history.
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Established in Hong Kong in 1959, occupied a retail space of
4,000 square feet with 40 staff
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Offered best quality Chinese products
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Started to own properties for department store operations
since the ‘70s
·
Diversification of business portfolio since the ‘90s
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Expanded business abroad since the mid-‘80s
2. Achievements
·
Grown from a single department store to an extensive network
of 14 retail outlets in Hong Kong and a department store in
Singapore
·
Expanded retail outlet space from 4,000 square feet to 250,000
square feet
·
Owned properties at prominent locations
business portfolio since the ‘90s
·
Successfully diversified business in Hong Kong and developed
new businesses overseas
·
Diversification of
3. Longevity
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A true great brand in retail industry, has stood the test-of-time
for four decades
4. Market dominance
One of the leading department store groups in Hong Kong, and
also one of the major Chinese products department store in the
region
·
5. Goodwill
Wide variety of choices
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Product quality
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Value for money
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Quality customer service
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Overall market acceptance
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Customer loyalty
6. Successful factors
Positioning and market segmentation
Successful positioning and segmentation strategies:
Business Process·
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Immense investments in new technologies for improving
business processes
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Outsourcing part of business processes
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Efficient logistic systems
Management
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Pursuance of efficiency
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Adoption of systems for departmental performance evaluation
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Maintenance optimum inventory level
Efficiency in human resources utilization
Efficient procurement systems
Adoption of staff incentive schemes
Providing appropriate staff training at different levels
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Location
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All outlets are located at the prime locations
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Efficient space utilization
Products
· Widest selection of quality Chinese-made goods
-- Chinese Medicines
-- Chinese delicacies
-- Chinese dress (Cheung Sam)
· Product quality assured
· Quality items produced locally and abroad
· Value for money
4. Recent developments
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Development of chain of specialty shops
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Development of private label product
--Chicken essence
--Herbal soup
--Moon cake
Outlook
· Hong
Kong is still the shoppers’ paradise
-- International city, mixture of oriental and western cultural
-- Matured retail market
-- Variety of choices
-- Trends setter
·
A stepping stone for entering into China market
-- Window of worldwide products for people in China
Asia’s World City
Hong Kong is a Shoppers’ paradise
Happy Shopping!
Thank You