Source:
https://scmp.com/business/companies/article/3018402/bargain-hunters-flock-opening-japanese-discount-chain-don-don
Business/ Companies

Bargain hunters flock to opening of Japanese discount chain Don Don Donki’s first shop in Hong Kong

  • The chain’s owner, Pan Pacific International, says it plans to open more stores in the city
  • Some shoppers and analysts question the likely success of a shop that stays open around the clock
Located inside the Mira Place mall on Nathan Road, the bargain store featuring a wide range of products from groceries to make-up. Photo: May Tse

Japanese discount chain Don Don Donki opened its first Hong Kong shop, in Tsim Sha Tsui, on Friday, attracting hundreds of tourists and locals eager to snap up a bargain.

Located inside the Mira Place mall on Nathan Road, the bargain store featuring a wide range of products from groceries to make-up – like its Japanese counterparts – attracted hundreds to its grand opening.

Don Quijote, the international chain store operator that came up with the concept of Don Don Donki for its Southeast Asian market, is owned by Pan Pacific International Holdings. The group plans to expand its business in Hong Kong, eyeing the large number of mainland tourists.

First in line as the store opened its doors at about 10am was Andy Cheung. A regular visitor to Japan, Cheung said he is sometimes disappointed that certain brands can’t be found in existing Japanese stores in Hong Kong.

“I hope we can find these brands in Hong Kong’s Don Don Donki,” he said.

Ronald Chan was one of many people that sneaked out of work to attend the grand opening.

“I work at Mira mall nearby, but I’m sure a lot of Hong Kong people would sneak out on a Friday to get such great deals,” he said.

The chain is known for its steep discounts on food and other items. Don Don Donki’s Japanese grapes, for example, were priced at HK$39 per pack, as opposed to HK$100 per pack at most other supermarkets.

Don Don Donki currently operates five stores in Singapore and one in Bangkok under that brand name, making Hong Kong’s the sixth instalment of the popular chain in Asia.

Takeuchi Mitsuyoshi, operational director of Pan Pacific Retail Management, is optimistic about the new store’s prospects.

“We are confident the new Hong Kong store in TST will go on to be a massive tourist draw and local attraction in Hong Kong,” he said.

Tiffany Lung, an analyst at Hong Kong-based retail innovation company Tofugear, said the store offers a fun assortment of goods including beauty, sushi and other food products. “The [design] of the store replicates their Japan branches. It’s almost like the HongKongers have been transported to Japan,” she said.

According to Jeanette Chan, the senior retail director at JLL, the 24/7 business model could be very successful.

“When Hong Kong people visit Japan, they sightsee in the day and shop duty-free at Don Don Donki at night. In Hong Kong, people can work during the day and shop at Don Don Donki at night,” she said. “Or if office workers have [early] shifts and the supermarkets aren’t open when they finish, workers can buy something here.”

Chan expects the company to open more stores in the city soon.

Not everyone was so confident in the shop’s future success in Hong Kong.

Ogino Asuka, who has visited the store in Japan, said he had noticed a lot of people go out at night in Japan. “I don’t think that would happen so much in Hong Kong,” he added.

Lung pointed out there were only a few Hong Kong stores that adopt a 24-hour model. “Hong Kong is technically a city that never sleeps. It will be interesting to see if the store can keep up its 24/7 model,” she said.