Ventures Dialogue

A positive reaction to the wine duty exemption and various other wine industry supportive measures have seen Canada-based Wines to Go Ltd enter Hong Kong’s vibrant wine industry with the opening December 17 of its first retail shop in Hong Kong, located in the Mong Kok East MTR station concourse on the East Rail Line.

Wines to Go Ltd aims to bring a fresh and exciting selection of fine wines from around the world into Hong Kong and the Asia region. The company’s goal is to open up the market to wines other than Bordeaux and to let consumers discover other quality wines at competitive prices in an open and attractive space where wines are featured based on their style and taste profiles.

The company’s first wine shop in Hong Kong is the first such licensed premises to operate inside the MTR station. The wine retailer is endeavouring to present wine in a user-friendly location to capture passing young professionals who have a burgeoning interest in wine. The company plans to further expand its business in Hong Kong by opening several more shops along the MTR lines in the next 12 months.

President of Wines to Go Ltd, Mr Leo Baduria, said, “The trend in wine appreciation in Asia continues to grow and will affect the global wine industry in the coming decades. Our decision to expand Wine to Go Ltd into Hong Kong is the result of the rapid growth and promising prospects of the city’s wine industry. Hong Kong provides the best combination of efficiency, world-class infrastructure and sophisticated culture, the key determinants behind our investment in this city.”

Commenting on the strategic regional role of its Hong Kong operation, Mr Baduria said, “Hong Kong remains the best hub in Asia for the wine market because of its highly efficient systems and zero duty on wine. We will keep Hong Kong as our regional headquarters as we grow, enabling us to manage our business operations in other cities in Asia from our hub in Hong Kong.”

Officiating at the opening ceremony of Wines to Go Ltd’s first retail outlet in Hong Kong, Associate Director-General of Investment Promotion at Invest Hong Kong, Mr Charles Ng, warmly welcomed the company’s establishment in Hong Kong. He said, “We are delighted to have a Canadian wine retailer expanding its business into the Hong Kong market. The presence of Wines to Go Ltd not only enriches the portfolio of the wine industry in our city, but also enhances our position as a regional hub for wine-related businesses. Our investment promotion teams stand ready to provide further support and assistance to Wines to Go Ltd in its future business expansion here and regionwide.”

Mr Ng also said that since the exemption of wine duty in early 2008, many wine sector-related companies have set up or expanded their businesses in Hong Kong to provide support in areas such as trading, storage, distribution, auctions, etc. He noted that the new policy has also brought benefits to related economic activities such as tourism, catering and hospitality and exhibitions.

Photo by Robert S. Donovan

Hong Kong-based global consumer goods exporter Li & Fung Limited  and the Hudson’s Bay Trading Company  announced a global sourcing strategic partnership for Hudson’s Bay Trading Company’s four main retail banners, the Bay, Zellers, Home Outfitters and Lord & Taylor.

According to Jeff Sherman, Chief Executive Officer, Hudson’s Bay Trading Company, the consolidation of the company’s global sourcing requirements and activities into one North American shared services group with a best-in-class partner will accelerate the company’s overall business strategy to integrate and improve operating effectiveness of each of the retail brand merchandising entities.

“The signing of buying agency agreement with Li & Fung complements our shared services strategy to consolidate and align global sourcing needs into one group for all of our banners. By partnering with the world’s leading consumer goods sourcing company, we will be able to leverage Li & Fung’s scale and expertise,” said Mr. Sherman.

Mr. Bruce Rockowitz, President of Li & Fung (Trading) Company, said, “We are delighted to see the execution of this outsourcing deal with one of the oldest companies and one of the leading retail groups in North America. We are very excited about this strategic relationship as the four main retail banners are well-established and we see great potential in them. With our strong network of offices in over 40 economies, we are confident that we will be able to contribute to the long term success of Hudson’s Bay Trading Company in North America.”

The new buying agency arrangement with Li & Fung will go into effect in 2010.

Federal Finance Minister Jim Flaherty is on a high level mission to China with some of Canada’s heaviest finiancial hitters.  Not only have some of the key players in Canada’s banking industry joined him on the trade mission, but the head of the Bank of Canada, Mark Carney, is also on board.

For a country where the state plays a large role in business, this kind of high level mission is very important.  Canadian businesses have made successful inroads in China and have a very significant presence in Hong Kong, due in large part to a long and prosperous history between the two nations.  However, diplomatic efforts are necessary as well if we are to grow Canada-China trade.

This fact was made loud and clear by Dr. William Yip, a Hong Kong businessman with whom I met while in Hong Kong in January.  Dr. Yip chronicled a number of Canadian companies who have successfully leveraged connections to party officials into business success.  He explained that party opinions are very important.  What they think and what they know about your project carries a lot of weight.  Hence his statement that,

 ”in Western culture, all roads can lead to the room.  In China, there are lots of dead end roads – they tell you all roads lead to the room.”

Liberal International Trade Critic, Scott Brison, argues in today’s National Post that not enough has been done to strengthen diplomatic relations with China. 

Regardless of your thoughts on the past three years, a visit planned by Prime Minister Harper to China in November will be welcomed by the Canadian business community as a step in the right direction.

Canadian shoe retailer ALDO entered the Hong Kong market with the opening of its first flagship store on May 25th at the IFC mall, Central which houses over 100 international brands.

ALDO, the ALDO Groupe’s flagship brand, delivers total high fashion at prices that make keeping up with seasonal style a luxury within reach. ALDO footwear, handbags, and accessories are young in sprit, urban in mindset, and on the cutting edge of international style. Bursting with personality, ALDO is the lifestyle brand for people stepping up in the world.

The ALDO store at the IFC mall, which is the brand’s first foray into the Hong Kong retail market, will offer a wide product range of women’s and men’s footwear, handbags, and accessories to cater to every consumer’s fashion needs. Continue reading ‘Canadian fashion footwear giant ALDO puts best foot forward in the Hong Kong retail market.’

A small Toronto-based commercial interior design firm, full scale + partners inc., has started to export its success in Canada’s retail and restaurant sectors to China. Here at home, during the past four years it has worked closely with major players such as fashion retailer H &M. In fact, it has designed almost 15 outlets in Canada. H & M (Hennes & Mauritz AB) also enjoys a global retail footprint with more than 1,400 locations in 28 countries. 中文版請點擊這裡

That Canadian connection indirectly led full scale + partners to help H &M set up its 40,000 sq. ft flagship store in Shanghai in April 2007. But behind that dream international engagement was a steep learning curve.

“Things are very different in China,” says Yvonne Ho, principal of full scale+partners. The other principal is Jenny Lee.  ”For example, in Canada there is just one regulatory commission for the issuance of building permits,” she says. “But in China, there can often be various levels of government and local district departments that must grant approval prior to construction. The standards & requirements from each district may vary within the same city.”

“I have seen a project that requires 22 stamp & seal from local departments prior to construction. Frankly, it was a bit of culture shock for us.”

However, full scale+ partners had earlier cut its teeth in China collaborating with local design firms in Shenzhen, a city of 9 million people in Guangdong Province on the boundary between China and Hong Kong. “These projects helped us to gain a better grasp of Chinese market conditions and how the real estate sector works over there,” says Ho.

Full scale leveraged that experience into the successful completion of the H &M Shanghai flagship store. Negotiations began in late 2006 and the deal was signed in January 2007. Construction was completed in 67 days in time for the April opening. Continue reading ‘Success by Design’