Source:
https://scmp.com/lifestyle/fashion-beauty/article/3030479/amid-protests-hong-kong-independent-fashion-retailers
Lifestyle/ Fashion & Beauty

Amid protests, Hong Kong independent fashion retailers seize opportunities

  • It isn’t all doom and gloom for the city’s retail sector, with several independent fashion retailers saying loyal local customers are still spending
  • Being smaller, they have agility and flexibility on their side, which helps them adapt to changing circumstances
Clothing displays at Vein, a boutique in Causeway Bay that stocks independent fashion brands from Scandinavia.

As Hong Kong nears its fourth month of civil unrest, the effects can be felt across all business sectors – but particularly in retailing.

In the past few weeks, international luxury brands and designers have cancelled or delayed high-profile events and openings in the city. Some have even closed stores, particularly in hard-hit areas such as Causeway Bay (Prada was one of the latest, announcing that it will close its boutique in Russell Street, the world’s most expensive shopping street).

With tourism from mainland China taking a dive, usually jam-packed malls like Harbour City in Tsim Sha Tsui have become ghost towns, particularly at weekends.

Such strife, however, can also bring opportunity – in particular, for the city’s independent retailers.

Hong Kong-based multi-label boutique Rue Madame at the IFC Mall in Central.
Hong Kong-based multi-label boutique Rue Madame at the IFC Mall in Central.

While it’s true that Hong Kong is a shopper’s paradise when it comes to global luxury brands, it also boasts a burgeoning group of home-grown fashion and lifestyle businesses, many of which were founded after the 2008 financial crisis.

“Hong Kong is an amazing place for an entrepreneur,” says Ariane Zagury, founder of Rue Madame Fashion Group. “I arrived without a network and without retail experience and now my company operates nearly 30 stores across eight brands.”

Ariane Zagury, founder of Rue Madame.
Ariane Zagury, founder of Rue Madame.

Zagury believes that small- to medium-size enterprises and independent retailers are crucial to Hong Kong. “We are bringing an ‘original flavour’, and things that cannot be found everywhere.”

Zagury, whose portfolio includes multi-label boutique Rue Madame and international brands such as Whistles and Phase Eight, has like many retailers experienced a slowdown in sales since the anti-government protests escalated in July.

On a number of days over the last few months, many stores across the city have been forced to close early for safety reasons, and disruption to public transport has made the situation even more challenging. Uncertainty is expected to continue to affect businesses over the coming months.

Extradition bill protesters on Lockhart Road in Causeway Bay outside the Sogo department store. Photo: Sam Tsang
Extradition bill protesters on Lockhart Road in Causeway Bay outside the Sogo department store. Photo: Sam Tsang

It isn’t all doom and gloom, though.

“We’ve seen walk-in customers make shopping-decision delays because they lack hope and desire,” says Melinda Wong, who owns a boutique, Vein, in Causeway Bay, which stocks independent fashion brands from Scandinavia. “On the other hand, we’ve seen the faithful customers show their generous support in buying new season items no less than usual.”

Unlike major brands that rely heavily on mainland Chinese tourists for business, independent retailers tend to have a bigger local customer base. And many of them, as Wong attests, are still willing to spend despite the hard times.

“At a time like this, it is more important to go out and shop local,” says fashion executive Catherine Ku. “Hong Kong is an economic hub – when we stop supporting our own businesses it becomes problematic.”

We believe that in this kind of market, we have to be even more opportunistic. Being smaller, you can step in quicker if there is a good opportunity like a good store location becoming available Ariane Zagury, founder, Rue Madame Fashion Group

A visit to the newly opened K11 Musea luxury mall in Tsim Sha Tsui on a recent Saturday afternoon showed it was business as usual there. Families and shoppers lined up to visit new boutiques such as the Moma store and Kapok, another local lifestyle retailer, which recently opened a 2,800-square-foot (260-square-metre) flagship store there, including a shop-within-a-shop for French homewares brand Astier de Villatte.

“Harbour City is dead but here it’s crowded, not only because it’s new but because most of the shoppers live in the surrounding area,” said a Hong Kong-based consultant for luxury brands. “Having local customers is the only way a brand can survive.”

Local lifestyle retailer Kapok’s new flagship store at the K11 Musea luxury mall in Tsim Sha Tsui.
Local lifestyle retailer Kapok’s new flagship store at the K11 Musea luxury mall in Tsim Sha Tsui.

Over in the prestigious Landmark Prince’s, flanked by Chloe and Chanel, is Tabla, an Indian-inspired lifestyle brand that opened in 1999. Founded by local entrepreneur Tania Mohan, the boutique has survived tumultuous times including the 2008 financial crisis and the last major period of pro-democracy protest in Hong Kong: 2014’s “umbrella movement”, which saw major roads in Admiralty, Causeway Bay and Mong Kong occupied for 79 days.

“Even though we have a strong presence globally, people in Hong Kong have always been our biggest supporters,” Mohan says.

“One change we have noticed since the protests is people’s shopping habits. Rather than go out during the weekends, they tend to do their shopping during the week when there is less disruption to transport.”

Tania Mohan at her shop Tabla in Central. Photo: Nora Tam
Tania Mohan at her shop Tabla in Central. Photo: Nora Tam

Unlike international luxury brands, local retailers may not able to rely on business in other markets to recoup their losses. But what they do have on their side is the ability to be more agile and flexible.

“As a small, independent company, we are a lean team with a lean process – everyone is empowered to make certain decisions,” Wong of Vein says. “We may not have the financial arm of a typical fashion company or conglomerate, but we do have the advantage of higher sensitivity and are able to respond quickly to changes, from customer preferences to shifts in the market.

“And there’s no chance of being overshadowed by common agendas like in big, complex organisations.”

The Pacific Place mall in Admiralty, host of many international luxury brands, closed on June 13 following protests the day before. Photo: May Tse
The Pacific Place mall in Admiralty, host of many international luxury brands, closed on June 13 following protests the day before. Photo: May Tse

For Wong, this has meant adjusting the volume of stock purchases for the upcoming season, while focusing more on curation. Mohan is planning to celebrate Tabla’s 20th anniversary with a special collection and catwalk show. Zagury, meanwhile, is hedging her bets and is planning a number of store openings and extensions later this year, including the debut of popular athleticwear brand Sweaty Betty, which will open in the IFC Mall in Central.

“We believe that in this kind of market, we have to be even more opportunistic,” Zagury says. “Being smaller, you can step in quicker if there is a good opportunity like a good store location becoming available.”