Thematic visits
Written by: Lin Leqian
2020-04-11 11:00
Date of last update: 2020-04-11 11:00In the current epidemic, the public has no intention of going out for consumption, and the retail industry is in distress. However, household items such as masks, tissues, and alcohol hand-washing liquid have become "commercial goods". Japan City recently sold masks and other epidemic prevention materials, which has significantly driven the market. Sales.
The epidemic has changed the daily lives of Hong Kong people, from grabbing limited-edition shoes to masks; from shopping in malls, to spending on online platforms. In the 29th anniversary of this year's Japan Town, Wei Lixia, the chairman and chief executive officer, said in an interview with "Hong Kong 01" that the physical store is always the group's "DNA". Even in the event of an epidemic crisis, she still boldly expands her business and expects to make a profit. Open 10 branches each year.
Wei Lixia started as a part-time employee, worked in a home shop in North Point when he was studying at university, and later became a partner with his boss Liu Baihui. He founded Japan City. The parent company's international home furnishing retailer (1373) was listed on the main version in 2013, and its current market value exceeds 1.3 billion yuan. She believes that "people, goods, and shops" are the three most important elements of retailers, recalling the expansion during the SARS period, attracting a large number of talents, and laying the foundation for the next 10 years of development. Unfortunately, the epidemic happened again after 17 years. She also holds an optimistic attitude and thinks it is a good time to make bold investments.
Wei Lixia, Chairman and Chief Executive Officer of Japantown, believes that physical stores are always the Group's "DNA", so the business is still boldly expanded under the "epidemic market". ﹙Photo by Gong Jiasheng﹚
Repositioning "can't just use homeware as solicitation"
The epidemic is a huge test for the retail industry. Visitors to Hong Kong have plummeted, local consumer sentiment has been sluggish, and the industry has no choice but to lay off workers and go bankrupt. Wei described the epidemic as having little impact on Japantown, which sells consumer goods. The Group also seized the opportunity to sell masks, alcohol hand rubs, and disinfection and cleaning products, which significantly boosted overall sales. She also pointed out that the Group developed an online platform in its early years, which just played a role in the epidemic. The passenger traffic increased by about 5 times after the Lunar New Year. Guests can always check product information and order at any time, and combined with the store network in Japantown, choose to visit the store for free Pickup or delivery.
In the epidemic market, many people changed to online shopping, but she still believes that physical stores have their advantages. "The convenience that Hong Kong people want is very unique. Overseas countries or the mainland will pursue delivery speed. However, in Hong Kong, even if the delivery is no longer Fast, they may not be convenient to sign at home, so it is more convenient for them to pick up goods at the store at any time. In addition to selling durable and high-priced household items, the Group also introduced more personal care products with lower unit prices and expendable And stationery. At present, it accounts for more than 40% of all commodities. "The threat of online shopping is great. We have to change the type of commodities. We can't just use homeware as a solicitation, transform Japantown and take the convenience of life as a new store."
Wei Lixia said that because there are uncertainties in the current supply chain, he will try to put in more stocks to make preparations. ﹙Photo by Gong Jiasheng﹚
Open 10 branches in the next fiscal year
After experiencing the 2003 SARS and 2008 financial crises, and this new pneumonia outbreak, Wei Lixia believes, "Every test is a good growth experience. This year is the strongest year for people, goods and shops in Japantown. This environment is an opportunity for bold investment to prepare for the next 5 to 10 years of development. "She said that due to uncertainties in the current supply chain, she would try to prepare as much cash as possible to prepare for stocks, which is expected to increase at the end of the year.
Among the three brands currently under the group, Japantown has 281 branches in Hong Kong, and the new brands "123 by ELLA" and "Duolaibu" have 31 and 5 branches respectively. Japantown has been in the mass market for a long time, selling cheap household items, Wei Lixia introduced, "123 by ELLA" is mainly for the young and feminine market, focusing on the individual, selling cosmetics, skin care products and electronic products, etc. "The main focus is on snacks and personal care products. She pointed out that the group will continue to purchase goods through parallel imports. In the future, it will first focus on the development of new brands and increase its market share in the form of multi-brands.
Wei Lixia said that the epidemic is a "painful battle" for the industry and a challenge that will inevitably come in the long run. ﹙Photo by Gong Jiasheng﹚
The epidemic brings pain, and the industry must seize the opportunity to change
The retail market is bleak. Wei Lixia believes that the epidemic is a "painful battle" for the industry and a challenge that will inevitably come in the long run. "Looking back after a few years, it may be because of this attack that the retail industry can find new Direction, if there is no opportunity to force everyone to change completely, the industry will continue to use the established model of the past more than ten years, and has been lagging behind the overseas and domestic markets. "She bluntly said that the retail industry is too dependent on tourists, and there is too much bubble in the rents of the busy districts and streets In the same way as shopping malls and shops, locals cannot enjoy shopping, but instead choose to consume on foreign websites, which also stifles the development of new local brands.
She believes that companies need to change their sales strategies as soon as possible, including sales targets and models. "To attract local consumption, at least be self-sufficient. Companies must be able to defend themselves in times of crisis. The current scale of merchants is" bigger and more dead "and creative. Of small businesses may seize the opportunity. "
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