New World Development reaps rewards from online sales experiments to counter Covid-19 crisis

Developer has generated HK$10.5 billion in retail and property sales since March, using online channels

Company to offer 783 units in the first phase of The Pavilia residential project in Sha Tin from next month, Cheng says

Reading Time:2 minutes

New Word's residential development The Pavilia Farm atop Tai Wai MTR Station in Sha Tin, Hong Kong. Photo: Xiaomei Chen

Published: 7:45pm, 30 Sep 2020Updated: 11:07pm, 30 Sep 2020

New World Development (NWD) is seeing the fruits of its digital experiments to overcome the Covid-19 crisis after scoring substantial sales from online channels while footfall and tourist arrivals suffered amid lockdown and travel restrictions.

The Hong Kong developer has generated more than HK$10.5 billion (US$1.6 billion) in retail revenue from its network of shopping centres in the city and property projects in mainland China since March. The amount included HK$300 million from its flagship mall in Tsim Sha Tsui and 9 billion yuan (US$1.32 billion) from its Shenzhen Prince Bay housing project in Shekou.

“If you react quickly, Covid-19 opens up new business opportunities that will put you in a much better position when it eventually subsides,” executive vice-chairman Adrian Cheng Chi-kong said during a financial results briefing on Wednesday. “We cannot control the virus, but we can control our reaction time to new measures and the changing habits of our customers. “Speed and decisiveness is everything.”

Executive Vice-chairman Adrian Cheng Chi-kong attends a sustainability forum in January 2020. Photo: Jonathan Wong

To boost retail sales for its mall tenants, NWD is cooperating with them through live-streaming and other online promotions for all 12 of its K11 malls in Hong Kong and mainland China.

Its K11 Musea flagship in Tsim Sha Tsui has generated more than HK$300 million of sales within 10 days this month after an aggressive digital promotion. The mall achieved a 35 per cent jump in sales in the second quarter while the broader industry slumped, Cheng noted.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x