Home stores open to strong demand (hktdc.com)


	Customers flock to Spotlight in MegaBox, embracing the Australian brand ‘unbelievably well'

	Steve Gilman, CEO of B&Q Asia, is welcoming bumper crowds to B&Q's Hong Kong flagship

Hong Kong's continuing robust growth and upbeat economic outlook is fuelling international investment in the city's property market.

A new report by global realty firm CB Richard Ellis notes a "great demand" for property investment in Hong Kong, with China key factor. The report states that investor optimism in the local economy and higher yield rates is boosting property investments across the board, but particularly in the high-end sector.

The buoyant property market is also reaping rewards for home improvement business. Australian fabric, craft and interiors chain Spotlight and UK hardware giant B&Q both launched their first Hong Kong stores this year, having waited for the right opportunity. That came with the completion of visionary retail, dining and entertainment complex MegaBox in Enterprise Square Five, Kowloon Bay.

Key market

Stephen Carter, CEO of Spotlight Pty Ltd, said Hong Kong was an important market for the group and a launchpad to the Chinese mainland. "Hong Kong is a very international market representing the centre of fashion for Asia," Mr Carter said. "All the major retailers are positioned in Hong Kong, and there is no better platform to test the Spotlight brand."

Spotlight had been "scouring Hong Kong" for the right location and the vertically integrated MegaBox provided "just what we were looking for".

"A lot of Australian companies have blundered into overseas markets by modifying their (existing) model," Mr Carter said. "We took a more guarded approach. MegaBox delivered the best opportunities for our brand in the incredibly competitive and exciting market of Hong Kong."

Savvy customers

The booming economy is delivering Spotlight customers in the form of a very affluent and powerful middle class, Mr Carter continued. Customers are savvy in terms of international trends and improving their home environment.

Hong Kong consumers have embraced the Spotlight brand unbelievably well, he said. This is invaluable for the brand's Greater China strategy as it indicates where the trends are. "We can tell where the mainland is heading, because Hong Kong got there first," he said.

Mr Cater added that Spotlight is talking a very long-term view in the region and is planning to develop more stores in Hong Kong and also the Chinese mainland as opportunities present themselves.

Business doubles

Steve Gilman, CEO of UK-based B&Q Asia, reports a stronger than expected response since the store's opening in June. "Customer flow is about double what we expected. On a busy Saturday or Sunday, we'll have 30,000 people come through the store," he said.

Mr Gilman says that the Kerry Properties-owned MegaBox was the "hot mall" of the moment, thanks to its exciting concept and innovative marketing by key tenants such as B&Q and Spotlight.

B&Q is encouraged by its customer response and their willingness to participate in the store's DIY workshops, a new concept for Hong Kong. "At the same time, we are listening to our customers, learning about how we need to improve or adapt to suit Hong Kong tastes."

Mr Gilman said that with the Hong Kong flagship successfully launched, B&Q is now turning its thoughts to extending the brand's reach to other parts of Hong Kong.