Dymocks plans growth despite changing habits

Dymocks, the largest English-language bookseller in Hong Kong and Australia, sees room for expansion in the city despite punishing competition and changing reading habits.

The company, which has operated in the Great China region through a joint venture with SCMP Group since 1999, is seeking to bring back the number of stores to about 12 after three were closed last year when their rental contracts expired, said Jannie Tam, general manager of the joint venture, Dymocks Franchise Systems (China).

Fifteen years after its inception in Hong Kong, the internet, smartphones and tablets are dramatically reshaping reading habits, with soaring rents making an already challenging operating environment even tougher for booksellers.

"It's no longer a purely book business," Tam said. "It has evolved into a cultural business with entertainment elements."

Founded 135 years ago, Dymocks operates more than 70 stores in Hong Kong and Australia, with the stores in Hong Kong primarily run by franchisees.

In the city, the bookseller differentiates from its competitors Page One, Bookazine, Swindon Book and Eslite through store location, a reader loyalty programme and growing non-book merchandising.

Tam said Dymocks prefers prime locations for new stores but the ultimate choice depends on the franchisees, rents, and clientele.