Leading UK retail group Tesco has established Hong Kong as its global sourcing superhub by doubling the size of its office in Kowloon.
Managing director of Tesco Hong Kong Alan Wragg said there was no better place in the world for sourcing than the SAR. ˇ§Reliability is the key word. We know we are getting a good range of products at competitive prices.ˇ¨
Another advantage is proximity to the Chinese mainland, where Tesco sources most of its non-food items. These comprise 60 per cent clothing, 20 per cent toys and the remaining 20 per cent hard-line items such as do-it-yourself products, stationeries, gifts, electrical products and sundry items.
ˇ§We have been in Hong Kong for 33 years but we used to source via importers in the UK. By expanding our premises and using Hong Kong as our sourcing superhub, we are doing business directly with the Chinese mainland and we can see what we are getting,ˇ¨ Mr Wragg said.
Tesco Hong Kong has an 11,000 sq ft office with a staff of 75 to help source goods more competitively. It is the regional headquarters for non-food sourcing activities in other Asian Tesco offices including Thailand, India, Bangladesh, Sri Lanka and Mauritius.
Tesco is the second largest retail group in Europe. It has a turnover of 22 billion pounds (US$31 billion), of which 70 per cent is from UK stores. ˇ§The company is looking to diversify in overseas markets and expand non-food lines,ˇ¨ Mr Wragg said.
Currently there are 45 Tesco hypermarkets in Southeast Asia. He added that there were plans to open Tesco stores in the Chinese mainland in the near future as Chinaˇ¦s entry to the World Trade Organisation will result in a relaxation of trade regulations and create more business opportunities.
