HMV is a 92-year-old music retailer which in January 2013 sought protection from creditors, after seeing its core businesses selling compact discs and digital video disks eroded by online competitors like Apple’s iTunes and Amazon.com. Known worldwide for its ‘Nipper the dog’ trademark, its first store on London's Oxford Street was opened by English composer Edward Elgar in 1921.
Two SAR shops first of bigger crop in regional plan to stop and sell the roses
Flower Mania is to open two retail shops in Hong Kong this month in its first step toward building a regional retail network.
Alfred Siu Wing-fung, founder and managing director, said the company planned to invest more than HK$90 million to develop a regional fresh flower and floral-gifts business.
It has already invested about HK$40 million in the two retail shops and in promotion.
Mr Siu, former majority shareholder of listed fitting-out contractor OLS Group, began developing a floral retail chain after being attracted by the high margins and steady income flow once a brand name is established.
Flower Mania, set up four months ago, sells fresh flowers through retail outlets, phone, fax and e-commerce channels, and operates a floral gifts retail chain.
It intends to build a brand name as strong as Starbucks for coffee or HMV for CDs.
It has targeted the HK$400 million Hong Kong fresh flower market and plans to target the mass market by selling flowers through a convenience store chain before Valentine's Day next February 14.
The market is not big enough to attract large companies, making the market fragmented among smaller players, which gave room to the company to expand, Mr Siu said.
The company hopes to hold a 30 per cent market share in five years and to expand into Taiwan, Singapore, Shanghai and Tokyo in 2002.
It plans to earn HK$300 million in sales in five years and to earn a profit of more than HK$100 million.