Fashion retailer diversifies into property to reap stable rental income
Chief executive says running a shopping mall is like running a fashion brand
Few people would link up fashion and property but Lawsgroup deputy chairman and chief executive Bosco Law Ching-kit found there were a lot of advantages in running a fashion manufacturer and retailer alongside property investment.
“It is about diversification and we can cope with different economic cycles by running three lines of business at the same time in manufacturing, retail and property investment,” Law said at one the investment properties owned by his family business, D2 Place One in Lai Chi Kok.
For four decades, the group has been a manufacturers for many big international brands such as GAP, and its factories around the world employ 20,000 workers. It also runs its own fashion retail brand, bread n butter, and has turned to property investments in offices and industrial buildings turned into shopping malls to collect rental income.
Running the three different types of business at the same time was challenging, Law said, as different management talent was needed to run the three different business, but it also helped diversify the risks.
When we do investment property, we are taking a very long-term view
“When the yuan is depreciating, mainland tourists may not come to our retail shops or shopping malls at D2 Place One, but then our manufacturing would benefit from the cheaper currency for our export prices,” he said.
The property investments also added stable rental income to the group when the fashion or retail business was down.