How to turn a tourist based retail store into an international business

Essay by ikarireiUniversity, Bachelor's March 2004

download word file, 11 pages 4.0

Downloaded 167 times


Everybody knows that Hong Kong is a "shopping paradise" in the eyes of tourists. However, many tourist-based discount stores have been regarded as the "gimmick" business and seldom gain the attention of general public. With very little chance to succeed, Simon Kwok parlayed a 40 square feet counter into a multimillion-dollar global cosmetics empire, the SA SA INTERNATIONAL HOLDINGS LIMITED. The purpose of this report is to analyze the path to foreign markets and the business strategies of the company.

Background Information

SA SA INTERNATIONAL HOLDINGS LIMITED is a leading provider of beauty and health products and services in Asia. Headquartered in Chai Wan, SA SA is a Hong Kong based international enterprise that have a business network consists of 5 countries. The GROUP was established in 1978 by husband and wife team, Simon and Eleanor Kwok. At that time, they found that cosmetics specialty store is not available in the Hong Kong market; only beauty counters in department and drug stores were selling cosmetics and toiletries.

The couple thought that it had a great potential for this kind of business. Then, they invested 20,000 dollars to open a 40-square-feet store in the busy Hong Kong shopping district of Causeway Bay, and later on, became a pioneer in the chain stores concept to sell cheap cosmetics and toiletries by offering discount. Other competitors benefiting from this concept include Bonjour Cosmetics, Rainbow Cosmetics and Goodyear Perfume Centre.

History of the company

In 1986, Mr. Kwok quitted his old job and engaged wholly in SA SA development with his wife. They introduced an innovative retailing formula based on choice and convenience - the "self-service" and "one-stop-shop" concept. This idea was triggered during their supermarket shopping, "self-service" open shelves and make-up corner were set up throughout the stores, allowing customers to touch...