Martin Waters of British chain Boots has been delighted by the response in Hong Kong, where shoppers spend more than in the UK

Since British health and beauty chain Boots marched into Hong Kong last year, sales have been phenomenal. Now, the company is speeding up its expansion plans including a launch in the Chinese mainland.

By September - within the space of 12 months - the number of Boots outlets will have grown from the original six in 2002, to 32. Martin Waters, regional director for Boots Asia, attributes this success to Hong Kong consumers' penchant for known brands and quality products.

"Hong Kong is a very attractive and dynamic place to do business," said Mr Waters, whose company has 1,500 stores in the UK and a trading history of 154 years.

Boots opened as mini-stores within the key outlets of its local partner, long-established Hong Kong retailer Watsons.

 Demand for its products was huge, so much so that there are now 16 branches of Boots - the latest being in the upmarket shopping mall Pacific Place - and this number will double within the next three months. Shoppers have been drawn to the outlets by the stylish and eye-catching displays, trained assistants on hand to give advice, and the novelty of Boots renowned own-brand products.

The Hong Kong mini-stores carry a total of 850 lines across 10 different brands, with Boots No 7 and Botanics proving the most popular so far. The cheapest facemask retails for HK$20 (US$2.50), with the most expensive item, a No 7 make-up palette, selling for HK$850 (US$109).

"People in Hong Kong are really into new things," Mr Waters said. "If it is new and interesting then word of mouth spreads quickly. Our customers are aged between 20 and 40 with a natural pre-disposition for beauty and health products, and who like new products and name-brand products. The average customer spends HK$300 (US$39) - higher than in the UK."

Before the autumn, Boots will have stores in most of the main areas of Hong Kong - including outlying Yuen Long and Discovery Bay - with an outlet planned for nearby Macau, China. The company is confident that two of its new lines, Sleep and Detox, will prove to be popular with discerning Hong Kong shoppers in search of quality health products.

In addition to the stores, Boots also has a long-established sourcing operation which orders toys and other items from factories in China, particularly in the neighbouring province of Guangdong.

British chain store Boots targets Hong Kong market

Related links:
Boots www.boots-plc.com
Watsons www.hutchison-whampoa.com