Are pop-up stores the answer for Hong Kong’s struggling retailers?
Online retailers are increasingly taking up short-lease space to increase the visibility and awareness of their brands
A new rental strategy is taking root among Hong Kong’s retailers, as they battle for survival in an industry squeezed by 17 consecutive months of shrinking volumes and retail rents that are among the highest in the world.
PopUp Angels, a Singapore-based startup, connects retailers with landlords through short-term leases ranging from two weeks to several months. Call it the Airbnb of shopping malls.
Hong Kong’s retail rents are “out of reach for most smaller retailers, so if there is an opportunity to rent space for a week or a month, many are willing to take that opportunity,” said Kit Chan, PopUp Angels’ co-founder.
Business has been brisk. Demand for pop-up space rose by 50 per cent in the past year, Chan said. Malls including Hysan Development’s Hysan Place, Swire Properties’ Pacific Place and Harbour City have reserved designated space exclusively for pop-up stores or events.
The availability of such space has also pushed online retailers temporarily offline, spurring independent fashion designers to take up short-lease space to increase the visibility and awareness of their brands.
Grana, a Hong Kong online fashion retailer founded in 2014, experimented with a pop-up store in the same year, allowing customers to try out its clothes and make online purchases through its in-store computers.
