Thirty-five years ago, Margaret Tancock was on her way from Britain to Argentina to find her fortune when she fell in love with Hong Kong. She has been here ever since. Having first tried her hand at several ventures, including restaurants and bars, she settled on the Body Shop, setting up her first stall in the Landmark in 1984. When she handed over the operation to her son, Marcus, 13 years later, there were 16 stores across Hong Kong. For most franchise rights, the franchisee has to pay the franchisor a large front-end fee; but for the Body Shop, things are a little different. 'You are offered the rights for free, if you are the right person,' Marcus Tancock said. During the early years struggling to keep her business afloat, Ms Tancock, who was also environmentally conscious, struck up a friendship with Anita Roddick, the founder of the Body Shop. The Body Shop International benefits from the robust business of its franchisees, mostly by selling products to them. The timing of Marcus Tancock's rise to power was unfortunate - Asia was entering a protracted period of recession. Hong Kong was no exception and the Body Shop Hong Kong saw sales fall by 20 per cent, Mr Tancock said. The recession may not have been all bad for retailers. Mr Tancock credits the crisis for some good changes in the industry. 'The quality of service has gone up, while price has gone down. The rent is much lower. Now we have five more stores and only employ half of the people,' Mr Tancock said. Better still, sales have gone up 15 per cent in the past four months. Encouraged by the performance of their newly opened store in Tuen Mun, the Body Shop Hong Kong plans to open three more this year and eight more next year. Mr Tancock said the Body Shop enjoyed a loyal following, especially of women between 18 and 25 who made an average of three visits each month. For a global brand, franchising was a highly effective way to get into a new market, as the entry strategy was very secure, implemented by people who were familiar with the local culture and market, Mr Tancock said. The Body Shop Hong Kong has received a verbal agreement to open stores in the mainland but is waiting for the Body Shop International's final approval. But for a company that lauds itself on ethical values such as human rights and environmental protection, entering into that market must involve more than financial considerations. Mr Tancock said the company had no concrete plan to enter the mainland until at least the end of next year, although feasibility studies have been done on this highly tempting market. - Clara Li
