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Hong Kong retailers Sa Sa and TSL Jewellery shift focus to e-commerce, mainland China to survive coronavirus pandemic
- To grow its flagging sales, Sa Sa has tapped e-commerce platforms and plans to use WeChat mini-program to interact with mainland customers
- TSL makes greater use of online channels, sets up live streams to interact with younger consumers and boosts cooperation with Chinese influencers
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With the coronavirus pandemic and recession deepening the sales slump, leading Hong Kong retailers are adapting to the new normal by seeking growth in mainland China and via online channels while closing stores and pursuing bigger rent concessions.
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“Covid-19 has brought enormous challenges and evolution to the entire retail industry as well as to Sa Sa,” Simon Kwok, chairman and chief executive of Sa Sa International Holdings, said on Thursday after the cosmetics retailer posted deeper losses. “[With] the gradual shifting of consumption patterns from traditional retail channels to online platforms, the group is determined to stride into the new retail era and reduce its reliance on physical stores.”
Sa Sa reported a loss of HK$242 million (US$31.22 million) for the six months ended September, compared to HK$36.5 million a year ago, according to an exchange filing. In a bid to cut costs, the company cut the number of retail outlets to 231 at the end of September from 244 last year.
To grow its flagging sales, the company said that it has undertaken many marketing initiatives in Hong Kong, tapped e-commerce platforms and plans to use the WeChat mini-program to interact with mainland customers.
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Kwok said as sales on the mainland had shown an improvement recently, the company planned to open six to 10 more outlets in China in the current financial year.
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