pop up shop HONG KONG
contents B I R C H B O X O V E R V I E W 1 K 1 1 O V E R V I E W 2 N AT U R E 3 I N D U S T R Y O V E R V I E W 5 C U S T O M E R P R O F I L E 1 1 I N S P I R AT I O N 1 3 P R O D U C T A S S O R T M E N T 1 5 M A R K E T I N G 1 9 C O M P E T I T O R S 2 3 F I N A N C I A L B R E A K D O W N 2 7 P O P - U P S H O P 2 9
1
BIR CH BOX
B
ir chb ox kicked off the tr end of su b scr iption-ser vice r eta iling b a ck in 2010 pioneer ing in the b ea u ty ca tegor y . Essentia lly , the sa mple b ox r epr esents the mer ger of the tr a ditiona l gift set/ b ox ca tegor y w ith the sa mpling ca tegor y , pr oviding consu mer s w ith a choice of pr odu ct sa mples tha t ha ve n ot b een a va ila b le u ntil now . Bir chb ox sha melessly cher r y -picks ever y ca tegor y ( skin ca r e/ b ody ca r e, fr a gr a nce, ha ir ca r e, colou r cosmetics) to b r ing consu mer s compa nies tha t pou r time, r esea r ch, a nd love into their pr odu cts. Pr omoting u psca le hou sehold b r a nds su ch a s K iehl’s, K er a sta se, Jou er a nd Stila , the concept offer s clea r b enefits to cosmetics a nd per sona l ca r e
1
L O C AT I O N
“
FIR S T MU S E UM R E TA I L IN T H E W O RLD
K11
HO NG KO NG
A revolutio nary
m useum retail co ncept and a hybrid m o del o f art and com m erce f o unded by Mr. Adrian Cheng in 2008 . K11 is the wo rld’s f irst o riginal brand to pioneer the blend o f three eseential elem ents: A R T - P E O P L E - N AT U R E
2
“
2
N AT URE
K11
HO NG KO NG
3
V a r iou s gr een design a nd technology
concepts a r e ta ken into a ccou nt in the inter ior a r chitectu r e of K 11 pr ojects so a s to minimze the nega tive impa cts on the na tu r a l en vir onment a nd u pgr a de the over a ll qu a lity of u r b a n pu b lic pr emises. Design w ith a ga r den concept, K 11 fea tu r es a mu lti-dimensiona l na tu r a l la n dsca pe w ith a va r iety of loca l pla n ts, gr een r oof, ver tica l gr eening a nd u r b a n fa r ming. a nd cr ea tes a per fect integr a tion of na tu r a l spa ce a nd loca l cu ltu r e so tha t visitor s feel like indu lging in a n u r b a n oa sis a nd a r e inspir ed to consider the intima te r ela tionship b etw een hu ma n a nd na tu r e.
T his pictu r e honor s K 11’s su ccess for
incor por a ting na tu r e a nd or ga nic spa ces into their a r chitectu r a l design. N otice the incr edib le u se of lighting a nd moss w a lls to foster a b ea u tifu lly decor a ted r eta il envir onment.
INDU STRY OVER VIEW
3
P ositive economic conditions in Hong
K ong b oosted the con su mer w illingness to tr a de u p to pr emiu m b ea u ty a nd per sona l ca r e pr odu cts for the per ceived pr odu ct b enefits a nd b etter qu a lity .
The a geing popu la tion in Hong K ong a lso continu es to en cou r a ge consu mer investment in b ea u ty a nd per sona l ca r e pr odu cts a s older people seek to ma inta in their y ou thfu l a ppea r a nce a nd ima ge. C onsu mer s a r e a lso enticed b y inter na tiona l a nd r egion a l b ea u ty tr ends, especia lly skin ca r e a nd colou r cosmetics tr ends fr om Sou th K or ea a nd Ja pa n. Hong K ong’s a fflu ent neighb ou r s su sta in sa les of b ea u ty a nd per sona l ca r e: the influ x of tou r ists fr om ma inla nd C hina for insta nce. 5
L o we r
new launches , pro duct development a nd pa cka ging inno vatio n. Beauty s pecialis t retailer s r ema ins the pr efer r ed distributio n channel D espite the f act that inter net r eta iling is b ooming in Ho ng Ko ng, sto re-ba sed r eta iling r ema ins str ong with beauty specialist r eta iler s the lea ding r eta il distributio n channel in 2014 w ith HK $6.7 b illion. Co nsum ers generally pr efer to visit stor es for their beauty and personal ca r e pu r cha ses for the va r iety o f pro ducts o n o f f er, the ta ngib ility of items on shelves, custo m er service a nd the fr ee tr ia ls of the products. Mo reo ver, celeb r ity endor sements a nd instore pro m o tio ns are common w a y s for r eta iler s to capture attentio n and impr ove volu me sa les in Hong Ko ng. Furtherm ore, tour ists fr om ma inla nd C hina , who account f o r a signif ica nt pr opor tion of b ea u ty a nd personal care sales , sho p for b ea u ty a nd per sona l ca r e products in s to re-based r eta il ou tlets. A po sitive perf o rm ance is expected du r ing the for eca st perio d Beauty and perso nal car e is poised to r ecor d positive value growth in co nstant 2014 ter ms over the for eca st perio d. Ho ng Ko ng’s ageing popu la tion continu es to f o ster rising im age co nsciou sness a nd, consequ ently , enco urage consum ers to invest in b ea u ty a nd per sona l care pro ducts in o rder to pr eser ve their y ou thfu l appearance. R ising disposa b le incomes a nd the increased s ophis ticatio n of consu mer s w ill a lso see them beco m e m o re willing to explor e va r iou s b ea u ty and perso nal care brands a nd pr odu cts, cr ea ting new o ppo rtunities.
pr i c e s a nd t h e absence of im port duties a nd r e t a i l t a x i n H o ng Ko ng and the appreciation o f C hi ne se Yu e n a g a i nst t h e Ho ng Ko ng do llar as well as t he wi d e se l e c t i on o f p r oduct f unctio ns and brands on o ffe r a t v a r i o u s p r i c e s t iers were the m ain attractio ns fo r t o u r i st s fr om m a i nl and China, especially to urists fr o m se c o nd a nd t hi r d- t i er cities, where retail co verage i s l i m i t e d. C o m pr e h e nsive internet retailing and f ree de l i v e r y se r v i c e s b y m a jo r beauty specialist retailers a l so he l p e d t o spu r sa l e s in 2014. Int e r na t i ona l b r a nds d o m inate beauty and perso nal care Int e r na t i ona l pl a y e r s dom inate beauty and perso nal c a r e i n H o ng K o ng . They have established brands a nd a st r o ng p r e se nc e in retail o utlets, which has e a r ne d t he m st r ong c o nsum er trust in the q uality o f t he i r pr od u c t s . R e g u l a r new pro duct innovatio ns to se r v e t he ne e ds o f e m e r ging co nsum er beauty regim es a nd no v e l t y r e m a i n c r ucial to their s uccess. So uth K o r e a n b r a nds a r e p a r t i cularly pro active in term s o f
6
DEMOGRAPHICS P o p u l a t i o n: 7 , 1 1 2 , 6 8 8 J u ly 2014
There are a substantial nu mb er of A fr ica n, India n and Pakistani m ino rities in the a r ea . In colonia l days , m any Indians set u p their b u sinesses or joined the arm y and po lice f or ce in Hong K ong, a nd their descendents co ntinue to live in the ter r itor y . In r ecent years, Ho ng Ko ng has also a ttr a cted Afr ica n tr a der s, especially tho se o f the Commonw ea lth, to tr a de in the territo ry. Majority of peo ple th a t live in Hong K ong w ill go sho pping o utside their distr ict of r esidence, with Mo ngko k, Causew a y Ba y a nd Tsim Sha Tsu i co nsistently attracting a mu ch higher per centa ge of co nsum ers than other shopping a r ea s.
P o p u l a t i o n g r o wt h r a t e : 0.41% E t hni c g r o u ps: C hi ne se 9 3 . 1 % . Indonesian: 1.9%. Filipino 1.9%. O t he r : 3 % . M e di a n m o nt h l y h o u se h o ld inco m e$: $23,500 1 5 - 2 4 y e a r s: 1 1 . 5 % - - m a le: 417,300. Fem ale: 398,270 2 5 - 5 4 y e a r s: 4 6 . 9 % - - m ale: 1,430, 036. Fem ale: 1,905,585 M e di a n a g e : m a l e : 4 2 y e ars f em ales: 43 years O ft e n a b b r e v i a t e d a s TS T, is an urban area in so uthern K o wl o o n, H o ng K o ng . The area is adm inistratively pa r t of t he Ya u Tsi m Mo ng D istrict. Tsim Sha Tsui E a st i s a p i e c e of l a nd r eclaim ed f ro m the Hung Hom B a y now e a st o f T si m S ha Tsui. Tsi m S ha Tsu i i s a m a j o r tourist hub in m etro po litan H o ng K o ng , wi t h m a ny sho ps and restaurants that c a t e r t o t ou r i st s. M a n y o f the m us eum s in the territo ry a r e l oc a t e d i n t h e a r e a .
8
P S YC H O G R A P H I C S Th e H ong K o ng y oung individual is drawn to pa r t a ke i n sp or t s, sc ho o l activities, and especially a ny t h i ng r e g a r di ng sho pping. The Hong Ko ng yo ung i nd i v i d u a l i s a l so kno w n to be an independent and se l f- a ssu r e d t y pe c o m pared to the rest of the young A s i a n g e ne r a t i on. M e a ning that f ro m a yo ung age they a r e d r a wn t o a d a pt t o typical social principles and e xpe r i e nc e ne w t hi ng s, m aking them m o re adventuro us a nd i nde pe n de n t fr om the rest. They are interested in t he q u a l i t y o f a p r o d u ct, theref ore to the luxury and i m po r t a nc e o f a b r a nd im age. Mo re than ever bef o re t he y o u ng g e ne r a t i o n h as been drawn to the im age o f a b r a nd fo r wha t i t c o m m unicates to society rather than t he q u a l i t y o f a p r od u c t witho ut a kno wn brand im age. R e c e i v e i nfor m a t i on - Interpret inf o rm ation - Searching fo r a d di t i o na l i n fo r m a tion - Evaluate the alternatives - P u r c ha s e - R e - e v a l u a te the attitudes and intentio n - S t o r e t h e ne w a t t i t u des and intentio ns f or f uture r e fe r e nc e K o r e a n b r a nds are particularly pro active i n t e r m s o f ne w l a u nc hes, product developm ent and pa c ka g i ng i nno v a t i on. B e a u t y s p e c i a l i s t r e t a ilers rem ains the pref erred di st r i b u t i o n c h a nne l D e spi t e t he fa c t t ha t internet retailing is boo m ing i n H o ng K o ng , st o r e - b as ed retailing rem ains stro ng wi t h b e a u t y sp e c i a l i st retailers the leading retail di st r i b u t i o n c h a nne l in 2014 with HK$6.7 billion. C o nsu m e r s g e ne r a l l y p ref er to visit stores f o r their b e a u t y a nd pe r sona l care purchases f o r the variety o f p r o d u c t s o n o ffe r , the tangibility o f item s o n she l v e s, c u st o m e r se r vice and the f ree trials of the
9
products. Mo reo ver, celeb r ity endor sements a nd instore pro m o tio ns are common w a y s for r eta iler s to capture attentio n and impr ove volu me sa les in Hong Ko ng. Furtherm ore, t ou r ists fr om ma inla nd C hina , who account f o r a significa nt pr opor tion of b ea u ty a nd personal care sales , sh op for b ea u ty a nd per sona l ca r e products in s to re-based r eta il ou tlets. A po sitive perf o rm ance is expected du r ing the for eca st perio d Beauty and perso nal ca r e is poised to r ecor d positive value growth in co nstant 2014 ter ms over the for eca st perio d. Ho ng Ko ng’s a geing popu la tion continu es to f o ster rising im age consciou sness a nd, consequ ently , enco urage consum ers t o invest in b ea u ty a nd per sona l care pro ducts in o rder to pr eser ve their y ou thfu l appearance. R ising disposa b le incomes a nd the increased s ophis tication of consu mer s w ill a lso see them beco m e m o re willing to explor e va r iou s b ea u ty and perso nal care bra nds a nd pr odu cts, cr ea ting new o ppo rtunities.
S H O P P I N G B E H AV I O R S Th e H o ng K ong sho ppe r is kno wn as a un-utilitarian sho ppe r , a s t he y a r e fr om a m o re Westerniz ed and e c o nom i c a l l y d e v e l o pe d city, theref o re custo m ers visit m a l l s fo r t h e pl e a su r e of buying unplanned products a nd for t he sho ppi ng experience o f the m all as a who l e . The H on g K o ng sho pper pref ers spending tim e i n a sh o ppi ng m a l l c o m p ared to o ther Asian sho ppers t ha t i ns t e a d a r e t h e ‘ b u y and leave’ type o f sho pper, sho wi ng t ha t t he y kno w exactly what they want, with no i m p u l si v e b u y i ng . Hong Kong sho ppers are also kno wn a s i m p u l si v e b u y ers, as they buy a pro duct fo r p l e a su r e o r ne c e ssi t y disregarding the price and c o nse q u e nc e s. T h i s i s a l so som ething that co nventio nal C hi ne se b e l i e fs d o no t enco urage when it com es to i m pu l si v e b u y i ng a s i t is considered ‘redundant’. pr od u c t s. M o r e o v e r , c e lebrity endorsem ents and inst or e p r o m o t i o ns a r e c om m o n ways f o r retailers to c a pt u r e a t t e nt i o n a nd i m pro ve vo lum e sales in Hong K o ng . F u r t h e r m or e , t ou rists f ro m m ainland China , who a c c ou nt fo r a si g ni fi cant pro portion of beauty and pe r sona l c a r e sa l e s , sh o p f o r beauty and perso nal care pr od u c t s i n st o r e - b a se d r etail outlets. A po si t i v e p e r fo r m a nc e i s expected during the f orecast pe r i o d B e a u t y a nd pe r so na l c a r e is poised to reco rd po sitive v a l u e g r owt h i n c o nst a nt 2014 term s o ver the f orecast pe r i o d. H o ng K o ng ’ s a g eing po pulatio n co ntinues to fo st e r r i si ng i m a g e c o nsciousness and, co nseq uently, e nc o u r a g e c on su m e r s t o invest in beauty and personal c a r e p r o d u c t s i n o r d e r to preserve their yo uthf ul a ppe a r a nc e . R i si ng d i spo sable inco m es and the
increased s ophis ticatio n of consu mer s w ill a lso see them beco m e m o re willing to explor e va r iou s b ea u ty and perso nal care brands a nd pr odu cts, cr ea ting new o ppo rtunities. O n a bro ader note, the Asia n consu mer is know n to fit f o ur dif f erent categoriz es tha t a r e esta b lished on their type o f sho pping perf o r ma nces. Exclu sivity Seeker Indulgent T raveler V irtual Shopper Luxury Bargain Hunter The exclusivity seeker individu a l is b a sed a r ou nd the no tio n o f q uality especi a lly in lu xu r y . This individu a l loo ks into buying a produ ct tha t ca n b e ca tegor ized as luxurio us, theref ore this shopper der ives fr om a wealthy background. The indu lgent tr a veler on the o ther hand specif ically shops for lu xu r iou s goods like jewelry or watches, especia lly in a ir por ts. Instea d the V irtual Sho pper seeks to pu r cha se lu xu r iou s pr odu cts o nline. So cial m edia a nd online ca ta logs mostly inf luence this sho pper, w hich is w ha t dr a w s this ty pe o f co nsum er to purchase online instea d of elsew her e. The Luxury Bargain Hu nter pr efer s to pu r cha se products that have been discou nted or tha t a r e ta xf ree, m eaning that this consu mer s income is r ela tively low co m pared to a Exclu sivity seeker individu a l.
10
4
CUST OMER PRO FILE
精神 MEET LING S P IRIT UAL BEIGN
AG E : 2 2
S EN I O R YE A R IN CO L L EGE
L I V I N G O F F H E R PA R E N T S
AT T E N D S A R T G A L L E R I E S A N D FA S H I O N E V E N T S
AWA R E O F S U S T A I N A B I L I T Y
E N J O Y S C U LT U R E D I V E R S I T Y 12
5
INSPIR AT I O N
13
6
PRO DUCT AS S O R T MENT B ir chb ox
posts its b est seller s online b a sed on r a tings fr om cu stomer s a nd consta nt r eview s on their pla tfor m. W e’ve dicided to cr ea te a pr odu ct a ssor tment tha t concentr a tes on b r inging ou r hong kon g cu stomer s a ll of these b u t w ith a specia l focu s on b b cr ea ms a nd a nti-a ging fou nda tion s a nd tinted moistu r izer s a s these ha ve seen a consta nt gr ow th in popu la r ity thr ou ghou t the a sia n demogr a phic.
15
B IRCH BO X B ES T SELLER S
“
“
5 S T A R R AT I N G S
16
Co nsum ers are increasingly interested in pro ducts that serve m ultiple f unctio ns in o rder o save tim e and keep co sts do wn. This is a particularly attractive propositio n f o r co nsum ers in Ho ng Ko ng who lead busy lif es tyles . Skin care and co lo ur cos m etics are the catego ries in which hybrid pro ducts are m o st com m o n. While consum ers pursue a goo d appearance, they also want care f or their skin. Pro ducts such as 2-in-1 eye shado w, f o undatio n with concealing pro perties as well as BB cream s and CC cream s are co m m on pro ducts which are po pular am o ng Ho ng Ko ng co nsum ers. Skin care and co lour co sm etics with o verlapping benef its led the rise of m ultif unctio nal beauty and personal care pro ducts in 2014. The po pularity o f BB cream s and f o undatio ns with anti-ageing technolo gy is underpinning this trend.
18
7
MARK ETING T
o intr odu ce ou r Hong K ong PopUp Shop w e ha ve decided to pa r tner u p w ith Lu sh C osmetics in or der to ha ve a str onger ma r keting la u nch. Lu sh C osmetics is a UK b r a nd focu sed on cr ea ting pr odu cts fr ee of a nima l cr u elty a nd testing. Their ha ir a nd skin pr odu cts a r e ha ndma de, fr esh a nd 100% vegeta r ia n. The r ea soning b ehind Bir chb ox for Lu sh is b eca u se of the su sta ina b le envir onment tha t K 11 foster s, so it su its the a ssocia tion per fectly . W e decided to ha ve b oth a digita l ca mpa ign a nd a phy sica l invite to pr omote the new ly la u n ched Popu p stor e. C u r r en t cu stomer s w ou ld r eceive these invites a lon g w ith their infor ma tion b ooklet inside their Bir chb ox on the month pr ior to the ina u gu r a tion.
19
D I G I TA L L A U N C H
M A L L F LY E R S
BO X IN VITES
FRONT I N S TA G R A M M O C K U P BAC K
I N - S T O R E S I G N AG E
22
8
COM PETI TORS K11
HO NG KO NG
L oca ted in the hea r t of Tsim Sha
Tsu i, K 11 A r t Ma ll is a shopping complex w ith seven stor ies of tota l 340,000 squ a r e feet floor a r ea . W e ha ve decided to loca te ou r pop-u p shop on the 5th floor w hich ha s a n a r ea dedica ted to a ll things b ea u ty a nd hea lth ca r e r ela ted. Some of ou r next door competitor s inclu de: Bor ghese, Ha ir C or ner , Ingr id Millet, L’Occita ne, Ju r liqu e a nd Pa u l & Joe Bea u te. Str eet competitor s loca ted in the vicinity of K 11 inclu de loca l b ea u ty depa r tment stor es like C olou r mix a nd dr u gstor e w holesa ler s like Sa sa a nd Bonjou r .
23
M A L L COM P E T IT O R S
HONG KONG
24
S T REE T COM P E T IT O R S
KEY
K11
SASA
BONJOUR
CO LO U R M I X
9
FINAN CIAL B R E A K DOWN
27
R E Q U I R E M E N T S P R I C E P E R I T E M / D E S C R I P T I O N P R I C E
R E N T A N D F L O O R P L A N
P L A N N E D P O P - U P S H O P S Q U A R E F O O TA G E 3 0 X 2 3 $ 17 PER S Q UARE FT IN P RIME L O C AT I O N H O N G K O N G
$ 11 , 73 0
U T I L I T I E S ( L I G H T I N G A N D $ 3 0 0 A M O N T H $ 3 0 0 WIFI) I N S U R A N C E $ 1 , 0 0 0 P A R T I A L R E C O V E R Y O N I N V E N T O R Y ( M O N T H L Y ) $ 1 , 0 0 0 P O S A N D C R E D I T C A R D F E E S
3 0 C E N T S P E R T R A N S A C T I O N $ 870 A S S U M I N G W E H AV E A N AV E R A G E O F 1 0 0 T R A N S A C T I O N S A D AY F O R A F U L L M O N T H .
M E R C H A N D I S I N G F I X T U R E S ( C A S H W R A P , P R O P S , P A I N T M A K E U P B A R , B O X S T A N D S )
M A K E U P B A R A A N D C O L O R B O X E S $ 2 , 2 7 1 CASH W RAP $ 1 , 353 P R O P S A N D PA I N T $ 8 0 0
$ 4 , 4 24
S T O R E S I G N A G E A N D D E C A L S M E T A L C O U N T E R T O P F R A M E S $ 5 . 2 5 A P I E C E ( A S S U M I N G I N E E D 4 ) P R I N T E D M AT E R I A L $ 1 , 0 0 0
$ 1 , 021
I N V E N T O R Y $ 5 0 0 , 0 0 0 W O R T H O F I N V E N T O R Y F O R T H E W H O L E M O N T H
$500,000
M A R K E T I N G A N D P R O M O T I O N (SOCIAL MEDIA, PRINT A DV E R T I S I N G A N D LO G O LICENSING)
$ 5 0 0 , 0 0 0 W O R T H O F M A R K E T I N G S T R AT E G I E S
$500,000
F O O D A N D D R I N K S ( L A U N C H E V E N T S )
B L A N C O C AT E R I N G H O N G K O N G $ 1 , 2 0 0 FO R 75 T O 175 P EO P LE
$1,200
28
10
POPUP SHOP O
u r Pop-u p shop concept w a s designed a r ou nd the idea of mob ile a nd tr a n spor ta b le spa ces. W e decided to b r ea k in to a n old shipping conta iner a nd r e-pu r pose it to cr ea te a fla w less r eta il spa ce tha t emb r a ces a ll inicia tives su ppor ting the envir onment. The a esthetic melds a minima listic ta ke on fixtu r es a nd inter ior elements w ith color a ccents a nd or ga nic finishes. Ar chitectu r a lly w ise, ou r r eta il spa ce extends thr ou ghou t the entir e low -level w hich a mou nts to 29’3 x 22’8 ft. The r ooftop a r ea ca n b e a ccessed thr ou gh a n ou tdoor sta ir w a y a n d enga ges cu stomer s to sta y a nd lou nge a r ou nd a dding to the Bir chb ox exper ience. This a r ea is idea l to hold envents a nd host the la u n ch event.
29
F LO O R P L A N
LO W L E V E L
ROOF-TOP
TOP VIEW
31
SIDE WING 1
SIDE WING 2
33
WA L L S C H E M AT I C
AERIAL VIEW
ISABEL ASEN SIO DA N I E L L A A R C I L A S OFIA MOLINAR O