Italian luxury discount mall operator RDM opens outlet in Hong Kong to tap mainland shoppers

RDM, the Italian-owned operator of three luxury discount “Florentia Village” malls in mainland China, is opening a new Hong Kong outlet on Saturday, despite the sharp downturn in visitor and local spending in the city’s retail sector.

Maurizio Lupi, managing director of RDM Asia, said the new 60,000 square foot site, will be run in boutique style. Its clients include upscale luxury brands including Prada, Salvatore Ferragamo, Versace, and Kenzo.

The company has chosen the KC100 complex close to the Kwai Hing MTR station, which Lupi says will benefit from its proximity to mainland immigration checkpoints and Hong Kong airport.

He is targeting half a million customers this year, half of which will be mainlanders, a quarter Hong Kong residents, and a quarter travellers and expatriates.

Total tourist arrivals to Hong Kong last year dropped 4.5 per cent year last year to 56.65 million, according to Tourism Commission Board. Among them, mainland visitors declined 6.7 per cent to 42.78 million, but non-mainland tourist arrivals rose 3.1 per cent to 13.87 million last year.

That trend continued in December, with the number of mainland visitors growing 6.1 per cent to 3.95 million, and non mainland tourist arrivals rose 3.1 per cent to 13.87 million.

“Our brand is growing fast in China, so having the same type of operation in a different approach with a very strong mix of luxury brands, we are sure to attract customers from China visiting Hong Kong,” he said.

The outlet has the capacity to be expanded 30,000 to 50,000 square feet, he added.

He also played down the fact that mainland travellers to Hong Kong have been declining sharply, noting the company is confident of attracting sufficient targeted customers.

In mainland China, he expects double-digit turnover growth in 2017.