As of February 6, 2013, It operated approximately 260 stores and counters. The Group employs over 4,800 staff in Hong Kong, Macaw, Mainland China, Singapore, Malaysia and Taiwan. The Group offers over 600 brands with 16,000 Items of skincare, fragrance, make-up, products under international brands including own-brands and exclusive products such as Elizabeth Arden and Issue Programmer. It also offers round-the-clock online shopping services (www. Sass. Com) along with product and corporate information Source : (1) as as Official website (2013) : http://Webb . as. Com/corporate/Eng/whereas/coin/retail. Jsp (2) Bloomberg Businesswomen (2013) : http://investing. Businesswomen. Com/research/ stocks/snapshot/snapshot. Asp? Tick Customer Base Sass emphasize they offer of money’ to the customer. By offering quality items in competitive price throughout the market, Sass serves reasonable priced products for teenagers, young adults to luxuries brand for business woman, demanding user. Sass online shop (www. Sass. Com) serves customer whom enjoy the convenience of shopping online. They attract customers to try their products.
Position in market Sass is the leading cosmetics retailing and beauty care service group in Asia. They provide one-stop cosmetics specialty store and offer a broad product range with a full price spectrum. As As Official Website : 1) Political Forces : Government Regulations – Individual Visit Scheme implemented in 2003 Tourists boost Beauty and Personal Care retail industry The tourist sector is a force because strong influxes of Mainland Chinese tourists continue to pour into Hong Kong, especially since the individual visit scheme was implemented in 2003.
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This group of visitors helps drive strong sales in beauty and personal care retail channels. The increasing number of tourists from mainland China boosted the industry performance, especially in skin care, to a great extent. High quality assurance is the major selling point of Hong Gongs beauty and personal care products. Tourists from mainland China trust the beauty and personal care products sold in stores in Hong Kong. 2) Economic Factors – Strong economic performance The robust economy managed to squeeze GAP growth of 5% in 2011, continuing the steady momentum of economic upturn.
Hong Gongs retailing industry (including cosmetic retailing) was one of the main contributors with double-digit growth in current value terms. Inflation Beauty and personal care recorded strong growth in value sales in 2011. Growth was faster than 2010 mainly because high inflation led to an increase in unit prices, while the recovery of the economy stimulated spending by local consumers and tourists. Currency : Exchange rate of ARM to HECK Tourists from mainland China benefited from the exchange rate of ARM to HECK and buy more in Hong Kong.
Low Unemployment Rate The steady economic growth provided healthy Job opportunities and reduced the unemployment rate. As a result, a rise in income fuelled domestic consumption in the city. As As is benefited by the economic growth. 3) Social-cultural : Growing interest in socially responsible products As As do not focus on socially responsible products. However, other brand competitors such as “The Body Shop International Pl” is a global manufacturer and retailer of naturally inspired, ethically produced beauty and cosmetics products which is the trend. ) Technological : Internet Retailing Internet retailing is developing fast, recording double-digit growth rates. Online sales are expected to continue to grow. The high growth rates registered by internet retailing are due to the high penetration and rapid development of internet and e- commerce in domestic and foreign markets. As Sac’s online shopping services Law In addition to the minimum wage enacted in May 2011 and renewed in May 2013, Hong Kong was characterized by a low unemployment rate and high consumer confidence.
These factors caused people in Hong Kong who have a higher income Penn more for personal satisfaction. as as SOOT analysts 1) STRENGTHS : Prime Locations : Most of the As As stores are located in the shopping districts attracts the tourists from mainland China Long-term partnership with suppliers : With 35 years of experience in cosmetics, As Sac’s well-established network and relationship with suppliers, often buying in large quantities given them strong bargaining power, so they can offer competitive prices to customers.
Own global sourcing and purchasing team : With their own global sourcing and purchasing team, the group manages to have exclusive brands and private labels, it increases the brand selections and add more exclusivity for the group. “One Stop Cosmetic Specialty Store” Concept : As As prospers on its successful and proven “one-stop cosmetics specialty store” concept, offering customers with a wide range of quality products. Good Employee Training : As As considers employee training as crucial to the continued success of their operations and business expansion.
Training is focused on product knowledge and service skills and in turn providing the best customer service possible. 2) WEAKNESSES : reduces. Other brand competitor such as “The Body Shop International Pl” is a global manufacturer and retailer of naturally inspired, ethically produced beauty and cosmetics products which is the trend and became popular. 3) OPPORTUNITIES Government Regulations – Individual Visit Scheme implemented in 2003 Since the individual visit scheme was implemented in 2003, this group of visitors helps drive strong sales in beauty and personal care retail channels.
Tourists from mainland China trust the beauty and personal care products sold in stores in Hong Kong. Government Policy favors Tourism Industry Hong Kong government policy favors tourism industry and thus attracts more visitors by establishing more scenic spots such as Hong Kong Disneyland and Among Ping 360 cable car. Opportunities in Mainland China China market is an undeniable potential market whilst Hong Kong market is still attractive under Government’s favorable tourism policy. Technology : E-commerce : It’s e-commerce arm, www. Sass. Mom provides online shopping service to customers as well as a strong marketing tool for the Group. Local Events : As As participate in local Beauty Exhibition which give them more opportunities in business. Demand for men’s skin care products: Demand for men’s skin care products is expanded rapidly and contribute significantly to the good performance of the industry. Http;//www. Remuneration. Com/beauty-and-personal-care-in-honking-china 4) THREATS : High rental : High rental and operating cost in major market Hong Kong is a big challenge to As As. Brand Switching is another challenge for As As.
Competition from other cosmetic retailers, e. G. Bonjour Holdings Limited, Angel etc. Bonjour is the key competitor owns 41 retail stores in Hong Kong, Macaw and Guanos. Bonjour offers over 20,000 beauty and healthcare products, covering a broad range of items. CONCLUSION As As manage to gain positive growth annually and stand at a leading position in the beauty retailing industry. They maintain excellent relationship with suppliers. Own global sourcing and purchasing team is the reason for the persistent gaining of superior performance over time. As Sac’s internal and external factors are visualized.