Hong Kong Sa Sa enters Beijing store in the first half of the year does not conflict with mainland cosmetic brands

Cosmetics retail giant Hong Kong Salsa Group will soon land in Beijing. Yesterday, the reporter was informed that Sasha International (178.HK) head Guo Shaoming had launched an expansion plan over the weekend. Salsa will open its first cosmetic store in Beijing in the first half of this year and plans to open 100 stores in the next three years and five years in the Mainland. Home shop.

On February 2, 11 people, including Guo Shaoming, chairman of SaSa International Holdings Co., Ltd., Huang Guangyu, chairman of Gome Electrical Appliance Group, and Li Yanhong, chairman of Baidu Group, won the "Entriches Entrepreneur Award". In an interview with reporters at the award ceremony, Guo Shaoming threw out Sa Sa's latest expansion plan. He said that Sa Sa Cosmetics intends to open a branch in Beijing in the first half of this year. According to reports, the first shop in Beijing has an area of ​​approximately 218 to 327 square meters, and it is still looking for a suitable location. Guo Shaoming said that in the next 3-4 years, it plans to open more than 100 stores in the Mainland, with a total investment of 200 million yuan. Apart from Beijing and Shanghai, Chengdu and Chongqing, which have stronger purchasing power, are also considered.

In March 2005, Sa Sa opened its first mainland store in Shanghai for the first time. Currently, Sa Sa has five stores in Shanghai. Guo Shaoming pointed out that the mainland's cosmetics market capacity is more than 10 times that of Hong Kong, and Sa Sa will use its brand reputation in the Mainland to speed up its store layout.

Guo Shaoming said that the current purchase of mainland tourists accounted for 45% of Hong Kong's Sa Sa store sales. In the future, there is still an increasing trend year by year. It is estimated that the company will bring an average growth of 10% each year. He said that the shopping patterns of customers in the Mainland are changing, from focusing on the Golden Week to making special arrangements for shopping on the weekends or holidays, so the company’s revenue growth is no longer focused on Golden Week. He disclosed that another four new stores will be opened in Hong Kong and Macao this year, bringing the total number of retail stores in Hong Kong and Macau to 60.

Salsa’s fame in areas such as Hong Kong, Macau, and Singapore relied on discounted sales. After the scale has grown, it has gained more bargaining power and can get the most favorable purchase price. Some brands that are exclusively sold and represented by Salsa are There is great flexibility in pricing. However, it will be difficult for Sa Sa's mainland stores to find Hong Kong-style low prices.

Although the mainland market is large, the operating costs are much higher than those in Hong Kong. In addition to retail and import tariffs, Guo Shaoming pointed out that the biggest burden is the product inspection costs, and the cost of each type of testing should be between 15,000 and 20,000 yuan. Because of the high cost, the retail price of salsa in the Mainland is also 15% to 20% higher than Hong Kong.

Guo Shaoming frankly stated that unlike the low-cost advantage in Hong Kong, the Mainland Salsa will bring more cosmetic brands to consumers, maximize the advantages of “one-stop cosmetics purchase” and provide more cosmetic categories. According to reports, the current price of the Sasa in the Mainland is improving, and some products in Shanghai stores have already implemented the same price between Shanghai and Hong Kong.

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Do not conflict with mainland cosmetic brands

It is understood that most of the brands sold in Sa Sa stores are skin care products and exclusive agents that are used only by high-end beauty salons, and therefore face less competition with other department stores.

Sa Sa International (178.HK)'s interim report from 2006 to 2007 pointed out that in the mainland market, the Group's strategy is to focus on professional skin care brands. This strategy helps the group distinguish from its peers while introducing more exclusive brands. The introduction of exclusive health inspection procedures for domestic distribution of goods is an important part of the Mainland business. The Group has completed about 550 exclusive inspections of products for sale, and another 200 products are being processed. In addition to sales in Sa Sa stores, the Group will set up counters for its exclusive brands in department stores, aiming to open up more sales channels for its exclusive brands. The exclusive brand Suisse Programme beauty counter has opened in Chengdu Seibu Department Store.