American entrepreneur Nancy Floto has found Hong Kong a perfect sourcing base for her niche Christmas business

An American entrepreneur has found a niche business selling Christmas fantasy to Hong Kong. Florida native Nancy Floto started her retail shop appropriately named Christmas Fantasy three years ago and has not looked back since.

"I looked around Hong Kong and asked myself what was missing. It didn't have any Christmas things. I grew up with themed Christmas trees in Florida and had to bring back things from the US to decorate my trees every year," explained Nancy.

Hong Kong is a wonderful sourcing base, she said. "The Chinese mainland is nearby and I source from all over Asia - India, Thailand and the Philippines. Most of these items are exported to the US and I'm able to convince the manufacturers to let me have them in small quantities ranging from 72 to 244 items."

Sourcing typically starts in February. Looking for retail space is the most difficult part as she needs it for only three months. She started in Alexandra House in Ice House Street which gave her wonderful exposure because of the heavy traffic. This year, she has opted to open in Landmark right in the heart of Central's shopping district.

"The shop will be here from 22 October until the end of December and because Hong Kong is so cosmopolitan, different nationalities buy Christmas things at my shop. They regard it as more of a festive occasion rather than a religious thing," she said.

Demand for niche business

Nancy added it has been a learning curve with consumer tastes. "The 8.5 ft tall trees are going fast and people do not want thin Christmas trees, they want fat ones so they can hang a lot of baubles. Artificial trees and pre-lit trees are also very popular because they are environmentally friendly and are not messy." 

Business has been the best this year so far in her four years of business. "The economy is doing well and about 90% of my customers are repeat customers. There was one year when I did not open for business and I was deluged with phone calls asking where to buy my Christmas Fantasy items," she said.

The demand is obviously there for a niche business like hers. Already, some US companies have contacted her to do the sourcing for them. She is also thinking of expanding her business online to make it easier to order Christmas Fantasy items online.

"Hong Kong gives people like me a lot of energy. I would never have the same opportunity to do this business in the US. For starters, I would not be able to source so efficiently.

"It's so easy to start a business in Hong Kong. People are willing to help and want to actually see you succeed. A lot of companies have their showrooms in Hong Kong and that's good for sourcing," added Nancy.

Nancy is contactable at christmasfantasy@christmas-fantasy.com