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Storefront, the world's leader for short-term rental spaces collaborates with the one-stop source for retail intelligence in Asia, Retail in Asia.
Retail in Asia keeps its readers updated with the latest news, trends, reports, events and openings on everything that is happening across the Asian retail landscape.
Its readers are retailers, and stakeholders working around the retail industry. Therefore, if you are targeting the same audience, they could tell your story through sponsored articles, interviews, advertorials, and content marketing solutions.
Storefront partners with Retail in Asia to offer an exclusive media package for pop-up openings as well as a 20% discount to all of their services.
For further information, please contact their advertising department.
In addition to media coverage, Retail in Asia has launched a new consulting arm, providing services such as market research, trend studies, distribution planning and financial planning. The Retail in Asia consulting team is made up of industry professionals with over 50 years of combined experience in the retail and digital sector.
For more information, please visit the InTelligence page or contact to their intelligence team.
CASE STUDY SERIES : Why open a pop-up shop in Hong Kong?
Thanks to this strategic partnership with Storefront, the Retail In Asia team is developing case studies to provide you with a better understanding of Storefront listings and their potential for your business.
Hong Kong is a vibrant city with a consistent rhetoric of newness, which characterizes its retail landscape. It is also strategically located in Southern China, allowing access to the growing Chinese economy and making it an attractive entry point for many western companies entering into Asia. However, the retail haven is not without its cost, the typical rent commitment in high-rent areas is 3 years (36 months), with an annual increment of around 10%. The commitment or the lease liability could range up to millions of HK dollars.
When targeting Hong Kong, market research is a pillar in the definition of a successful strategy.
This case study series, featuring different locations, shows how pop-up shops are a useful tool to test the market for new brands at a lower investment and risk, but also to experiment creative branding activities for brands who want to relaunch their products among HK millennials and fashionistas.
CASE STUDY 1
Wondering about a 1,020 sqft in Central? It a prime area for fashion!
Contemporary Central Pop-Up Shop
Central is home to many international brands and it is an iconic landmark in Hong Kong.
Daytime, Central is a dynamic location. It hosts high-end shopping malls such as IFC and Landmark, and it is the financial centre. Night time, Central becomes the expat destination for fine dining and parties. Given the high daily traffic, and its privileged location for offices in the heart of the city, retailers target the area to position their brand in the high-end segment and attract affluent working class.
Find this Space
For example, Adidas now occupies the 36 Queen’s Road iconic corner retail space for a monthly rate of HK$ 4.3m. This is a 13,000 sq ft retail location that was previously rented by Coach for a monthly rent of HK$ 5.6m. The total rent commitment upon signing a lease to consider would be HK$ 171m.
A way of deciding whether it is worth the investment is to open a pop-up store in a similar location.
Temporarily renting a corner store located in a prime area of Central, with similar visibility and opportunity to attract in-store traffic to experience a product, could allow brands to test their business concept. Brands can collect information on the market and target customers, all while having the opportunity to generate sales potentially several times that of the West.
Based on a Retail in Asia internal simulation, an average performing store in Central could generate sales from HK$1.0m or above per month if correctly positioned for the market. In which case, the profit excluding marketing and depreciation would be in the range of 40% of sales at this location. Even if sales drop to HK$600K, the project would still be able to generate a 12% profit excluding marketing and depreciation. In comparison, a typical focus group marketing study would cost up to HK$100K per study, with potentially ambiguous results that add little to the final market entry decision.
In addition to financial benefits, a pop-up shop provides the opportunity to test products and the marketing strategy, and to generate feedback directly from the customers. In this case, the value of 3 to 6 months of operational data can easily dwarf the value of marketing research.
Retail in Asia has a team of research analysts and market professionals who can help create localized plans tailored to your business, assess sales projections, produce a profitability study for your brand, but also choose the right innovative technology to improve the in-store customer experience and increase the traffic through digital media plan.
