Royal Selangor Pewter not deterred by high Hong Kong rent levels
Royal Selangor Pewter opens on Hollywood Road, drawn by up-and-coming area's high foot traffic, despite the high store rental costs
Hong Kong's shop rents are high, but international retailers are willing to pay a premium to secure a foothold in the market, according to Chen Tien Yue, the executive director of Malaysian-based pewter manufacturer and retailer Royal Selangor International, which has set up shop in Central.
"We know Hong Kong rents are not low," Chen said, but the company's expansion in Hong Kong was a strategic move.
The ratio of rents to staff costs was about five times higher in Hong Kong than in some of the other cities the company has shops in, he said. "It is quite extreme and an unusual market."
Royal Selangor will use its 2,000 square foot shop in Hollywood Road to showcase its full range of products for corporate clients.
Together with Gough Street, Hollywood Road has become a magnet for international tenants looking for a trendy location that charges lower rentals than Central.
The high density of shopping traffic offered an opportunity to save on costs, Chen said.