Sa Sa works with influencers to promote Korean Beauty and Skincare Parade

Hong Kong-based cosmetics chain Sa Sa has collaborated with the Korea Trade-Investment Promotion Agency to bring to Hong Kong the Korean Beauty and Skincare Parade which is running until 2 December at all Sa Sa stores in the city and the Hong Kong website. The parade includes Korean beauty workshops that popular influencers will be invited to share Korean-style makeup tips. Sa Sa is also offering discounts for some of the best-selling Korean products at all stores in Hong Kong.

This year's parade features nearly 50 Korean brands including renowned brands such as Sulwhasoo, Dr. Jart, Banila Co, Dr G, VT, Derma B, Clio, Andlab, Cell Fusion C, Suiskin, covering South Korean skincare products that are popular among Hong Kong consumers as well as hair care and healthcare products. It is the first time for the brand to introduce haircare and healthcare products in the parade. Sa Sa said it is to enrich its product portfolio by expanding the personal care and healthcare product categories.

"This opportunity indicates the recognition and trust of many South Korean beauty brands towards Sa Sa. Korean products have been an important part of Sa Sa's product portfolio, and we are glad to see that consumers regard Sa Sa as a trusted source for purchasing Korean beauty products," said Simon Kwok, chairman and CEO of Sa Sa.

Meanwhile, the brand has narrowed its loss in the first half of this financial year ended on 30 September, while it is planning to close up to eight stores in Hong Kong and Macau in the second half of the financial year.

The company said its turnover from 1 March to 30 September amounted to about HK$1.60 billion, representing an increase of 24.2% year-on-year. Retail and wholesale turnover in Hong Kong and Macau increased by 26.9% to HK$1.09 billion year-on-year. Loss for the same period narrowed by HK$60.4 million to HK$181.6 million compared to the previous period.

Sa Sa said in response to the impact of the pandemic, it had implemented stringent inventory and cost management to conserve working capital. It also invested in online and Mainland China retail business as both fields have promising growth potential. Cost control measures include streamlining the physical store network in tourist districts in Hong Kong and the acceleration of digitalisation and automation to optimise its operations. Five to eight retail stores with excessively high rental costs or with fewer contributions are expected to be closed in the second half of the year.

Based on its plan, Sa Sa is expecting a decrease of 15 to 18 in the total number of stores year-on-year by March 2022. According to Sa Sa's website, it has 78 stores in Hong Kong in total, while there are nine stores in Macau.

Meanwhile, the company's online business has seen growth as its turnover reached HK$307.4 million, registering an increase of 65.2% year-on-year. The company’s online business continued to improve in the first quarter as it witnessed a faster year-on-year growth of 108.8%. It also increased by 64.0% as compared to the pre-pandemic period. The growth was primarily fuelled by China's “618 Shopping Festival” this year, driving outperformance in Sa Sa’s third-party platforms and WeChat mini-programme in Mainland China.

Moreover, turnover of the company's business in China increased by 12.7% in local currency terms to HK$143.6 million, while same-store sales dipped by 5.0% in local currency terms. The total number of stores operated in China as of 30 September 2021 was 69, representing a net increase of 21 over the last 12 months.

.

Related articles
Sa Sa International strategises to focus more health and fitness product portfolio
Sasa grows online presence with Shopee after pulling retail out of SG
Sasa's exit from SG: Lack of innovation or tough retail scene?