No haircut for niche Hong Kong salon chain, which is eyeing expansion in city despite economic uncertainty
- We aim to open another four to six branches, quick haircut specialist QB House’s executive says
- We will continue to open shops at ideal locations with reasonable rent, says local snack chain 759 Store
Japanese quick haircut salon chain QB House is confident it can sustain profits in Hong Kong despite the city’s economy slipping into a technical recession in the third quarter last year. The company was banking on Lunar New Year demand.
“We didn’t make any changes to our expansion plans for 2020. We still aim to open another four to six branches,” said Stanley Mo, managing director of the company’s Hong Kong operations. “There are still many areas in the city where we see potential growth. If you look at the map, we still have not tapped into places such as Tung Chung or Kwun Tong. We also hope to add branches in areas with more customer demand.”
A subsidiary of Tokyo-listed QB Net Holdings, the company offers 10-minute haircuts at HK$70 (US$9), and has 63 outlets in shopping malls and MTR stations. The company usually serves up to 200 customers a day at each branch during the peak season just before Lunar New Year.
According to Chinese customs, cutting or washing hair on the first day of the new year is taboo as it means washing away one’s good fortune. The company gets brisk business in the run up to mainland China’s and Hong Kong’s biggest annual holiday. Hair salons usually close for at least four days after Lunar New Year, with locals coming back for a trim a month later.
Hong Kong’s tourist arrivals fell by 14 per cent in 2019, while retail sales dropped 23.6 per cent in November year on year, according to the latest government figures, because of anti-government protests that have now lasted eight months. Jewellery retailer Chow Tai Fook Group and cosmetics chain Sa Sa International announced plans to scale down their businesses in the city.
