OPSM general manager Alan Smith says Hong Kong experience will help the group to learn more about doing business in China

Having established a strong presence in Hong Kong, the company is now eyeing further expansion in the region in line with its long-term strategy.

"Hong Kong is a major gateway to China. It has a good legal system, a strong, stable business culture, and is a very well run city state," said Alan Smith, OPSM group general manager international.

"As a retailer, we are also impressed by the shopping centres in Hong Kong and the well developed retail structure. Pacific Place on Hong Kong Island is world class, and New Town Plaza at Sha Tin is also excellent. Both are very effective in what they do, and this is important for OPSM, which doesn't just seek to sell to tourists, but to meet the needs of a whole cross-section of people."

Understanding the market

Mr Smith said the company would use Hong Kong to learn more about doing business in the Chinese mainland.

"We want to learn about and understand the market there. There are a lot of horror stories about investing in China, as well as cultural issues that Westerners do not appreciate. Hong Kong gives us a base that is close to the action, and also provides us with excellent resources. There is nothing I'd look for in Hong Kong that I wouldn't eventually find, and the quality is good."

Hong Kong is also next door to Southern China, where most of the world's spectacle frames are now made. 

Last year, OPSM acquired 47 Optical Centre stores in Hong Kong as a stepping stone to expansion in the region. It plans another 300 stores in the Asia-Pacific over the next five years, entering China in the latter half of that timeframe.

"The acquisition was a key move for us as there was no strong pan-Asia optical chain present," Mr Smith said. "We wanted to be the sales and profit leader in each market we're in, and we've achieved that in Hong Kong. Now, we will be looking to further develop our markets in Singapore and Malaysia."

But it is the market potential of China's emerging middle class that is causing the most excitement, he said.

Growing consumer demand

"The industrialisation of China has produced major changes in its society structure. The people want more consumer goods, along with better services, and when it comes to eyewear this also involves technical training, better products, and better selling solutions."

While adding that China is also a challenging market to operate in, Mr Smith said OPSM is helping to prepare by investing in cross-cultural training to help staff understand the cultural and business issues involved.

"If anyone looks at China and expects to do spectacular things in one or two years, then they are dreaming," Mr Smith said. "You have to earn your place in the market, particularly in the retail sector, as retail deals with the locals. You must be effective in that community."

Related link:
OPSM www.opsm.com