Tokyo Best Buy opens second-hand shops in Hong Kong

Second-hand bag trader Milan Station is finding it increasingly tough to find Hong Kong shoppers prepared to fork out HK$50,000 for a second-hand bag.

But one Japanese retailer is betting increasingly budget-conscious locals will not turn up their noses at other types of used goods.

Japanese second-hand goods seller Best Buy Tokyo opened its first shop in Taikoo Shing this month, selling everything from used electrical appliances to clothing, shoes and jewellery.

Best Buy Tokyo plans to list in Hong Kong within four years but hopes it does not repeat the performance of Hong Kong's own homegrown used-goods seller Milan Station, which saw interim net profit plunge 99 per cent to just HK$386,000 a year after it went public in May last year.

"While the profit margin for used luxury bags is between 7 and 10 per cent in Japan, the margin for used clothing and household goods can reach 60 to 70 per cent," company director Kagayaki Goda said.

"In Japan, we even sell used handkerchiefs just to keep our clients happy."

While such a sales model may not apply to Hong Kong, Best Buy's vast market in Japan - it has 108 outlets - will provide an excellent destination for unwanted goods in Hong Kong. The variety of its product mix also means their shops do not always have to be in the best locations.