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Tim Metcalfe

THE DEBUT IN CHINA  of leading Hong Kong health and beauty chain Mannings, which opened a store in Guangzhou, signals the prospect of dozens more stores to come and potentially hundreds of jobs in the mainland.

The move presents a unique opportunity for career retailers to get in on the ground floor of the expansion.

Mannings, which is wholly owned by Dairy Farm, part of the Jardine Matheson Group, can hardly be accused of rushing into the mainland, considering that it has operated in Hong Kong for 32 years and has 209 stores here.

What prompted the decision was the introduction last year of Hong Kong's Closer Economic Partnership Arrangement (Cepa) with China.

The retailer was the first in Hong Kong to win approval for its initial wholly-owned venture at Teemall  in Guangzhou.

Permission  was granted within just 10  weeks of applying. The chain is now implementing a major expansion programme.

The Guangzhou  debut, described by Jardine Matheson's  managing director  Percy Weatherall  as a new phase in the group's  development, was the first of 30 stores earmarked for Guangdong over the next two or three years, said Caroline Mak,   Mannings' chief executive  for Greater China.

More stores are scheduled to open in the next three months: three more in Guangzhou  and another in Shenzhen.  The other stores for southern China will be set up in  Dongguan, Foshan and Zhuhai.

The expansion  will create many jobs; the first six stores alone will require a workforce of about 200.

By the time Guangdong's full quota of about 30 stores is on stream,  about 1,200 jobs (including promotional staff for suppliers)  will have been created.

Ultimately, Mannings aims for a presence throughout China.

'At the moment, we are making preliminary studies in several other regions,' Ms Mak said.

While Beijing and Shanghai will be obvious extensions to the chain, Mannings has  no priorities about where it will move next.

'It's just a case of making commercial decisions about which region comes after southern China,' Ms Mak said.

While most vacancies are being filled on the mainland, Mannings is  looking for experienced retailers and graduates or recruits willing to learn, for its retail management training programme to manage  mainland operations.

'China lacks retail professionals,' Ms Mak said. 'Retailing over the border is only just taking off with the era of hypermarkets, supermarkets and chain stores still in its infancy. It means there is a big window of opportunity for Hong Kong retailing professionals who are willing to live in China.' Because  Mannings intends to run its China operation in regional cores, rather than under one big  national umbrella,  the expansion represents an opportunity to make a mark on the 'ground floor' of the company's growth across the border, Ms Mak said.

The chain seeks experienced  category managers responsible for products sold in China, store managers, project managers for start-up operations, property searchers responsible for finding viable sites for outlets, and human resources and finance executives. Public relations managers were  'very important for building our relationships over the border', she said.

Professional retailers can expect annual salaries in the HK$300,000 to $400,000 range. Graduates and recruits  trained in Hong Kong for six to 12 months under the retail management training scheme can expect $200,000 to $300,000 per annum once appointed. The packages  include accommodation and tax equalisation, ensuring staff are compensated in case of  higher tax rates in China.

'There are no short cuts to retailing,' Ms Mak said.

'Retailing is detailing and all about experience. You have to look at operations from both a strategic macro point of view, yet at the same time manage many small micro issues.'

For those going to work for Mannings in the mainland, the company has come up with a specially tailored concept which was developed over the past two years from in-depth studies of the market. 'We needed to understand what customers in China would want,' Ms Mak said. The company finally agreed on  a concept that focused  on both 'inner and outer beauty'.

'True beauty is not just about putting on makeup,' she said. 'You have to start with a healthy body by eating appropriate food and supplements and getting enough sleep and exercise. Once you have a healthy complexion, you can start on beauty products.'

To educate the mainland public, Mannings is placing three consultants in each store to offer free advice  on beauty as well as  nutrition and general health.

'We expect the introduction of this new tri-professional retail model to enhance our image as a specialist in the health and beauty field,' Ms Mak said.

The concept includes skin analysis machines in stores, makeup demonstrations, nutritional advice, health-check equipment and registered pharmacists providing complimentary consultations.

As for essential qualities for recruits, Ms Mak said: 'Experience is most welcome but not mandatory for those willing to undergo management training to become assistant store managers.'

GET IN ON GROUND FLOOR OF EXPANSION

Leading Hong Kong health and beauty chain Mannings launches in the mainland.

First retailer admitted to Guangzhou under Cepa.

30 stores scheduled for southern China.

Opportunity on 'ground floor' of China expansion.

Retail professionals required from Hong Kong for management; recruits or graduates sought for management training.

Salaries range from HK$200,000 to $400,000 (housing included).



Mannings heads to mainland