Sa Sa to launch stores on mainland
16/2/2004 17:46
Hong Kong's largest cosmetics retailer Sa Sa International Holdings
Limited announced the plan to move in Chinese mainland market and said it will
open one to two stores in cities such as Shanghai, Beijing and Chengdu this year
on a trial basis, today's West China City Daily reported.
The group has
submitted the proposal for retailing business license on the mainland, the same
report said.
Under the mainland expansion plan, which is expected to cost 50
million HK dollars (US$6.4 million), Sa Sa will open about 30 outlets on the
mainland in some four years, according to the group's spokesperson.
Despite
Sa Sa's reputation for availing lower prices than other cosmetics retailers, the
group's offers on the mainland stores will be about 20-30 percent higher than in
Hong Kong, the group's senior official said.
That's because most of Sa Sa's
products are international brands such as Lancome and they won't be entitled to
the zero tariffs under the Closer Economic Partnership Arrangement program,
which is slated for Hong Kong produced products. The CEPA program kicks off from
January 1.
Sa Sa's products, mostly produced overseas, will be subjected to
an import tariff of 20 percent according to China's rule.
Established in
1978, Sa Sa has opened 62 stores across Asia, selling 15,000 products under
400-plus brands, including cosmetics, perfume and personal care products.
It
went on the Hong Kong Exchange in 1997. Its revenue exceeded 1.6 billion Hong
Kong dollars last year.
Jane Chen/ Shanghai Daily news
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