759 Store
 | |
| Public | |
| Industry | Retail |
| Founded | 2010 |
| Headquarters | Hong Kong |
Key people |
Founder and CEO: |
| Website |
www |
759 Store is a Hong Kong chain store selling groceries and snacks. The name 759 is the Hong Kong Stock Exchange code for its parent company, CEC International Holdings Limited. Its Chinese name originated from the Japanese drama Oshin. 759 stores mainly import Japanese, Korean and other foreign food items and sells them more cheaply than other supermarkets in Hong Kong.
History
The first 759 store opened in Kwai Chung Plaza on 7 July 2010. Following this, 11 branches in Hong Kong and 90 branches in total were opened by July 2012. Between one-third and two-thirds of 759 Store's products are imported from Japan or. 759 Store has also expanded into other places, such as Korea, Taiwan, and Europe. As it expands, it is importing more items from different places like Taiwan and Korea. Under a membership scheme, its members can get even more economical deals. In December 2012, there were more than 120 759 stores.
The company announced that in December 2013 it would open a 759 Store Household Market, selling household goods and small appliances. As of December 2013, it operates 160 convenience stores in Hong Kong; another 12 were planned to open by April 2014. The company also operates two 759 Store Supermarket stores (with five planned to open in January 2014), selling groceries and household items. As of March 2014, it operates 187 convenience stores in Hong Kong [1]
Founder
Coils Lam Wai Chun (Chinese: 林偉駿, family name: Lam) (born 1958) founded the company after an active business career built around his electronics manufacturer he founded in 1979.[2][3] He was the founder of Coils Electronic Co., Ltd. (高雅線圈製品公司), an electronic-component company that had been running for 30 years. Under pressure during the 2008 financial crisis, including losing an element of control of the company, he started the 759 chain, under CEC.[4]
Business strategy
The early mission for 759 Stores was to fight against large-chain supermarkets. 759 Stores practises a 'Small Profit, Quick Return' strategy: selling each product at a wafer-thin margin with the aim of gaining through the sale. In 2012, 759 Stores had achieved its goal of high turnover and income reached HK$3.5 billion. With the support of its parent company, CEC International Holdings Limited, 759 Store is capable of surviving even with its current low profit rate. 759 Store's unexpectedly low selling prices have threatened other small shops and invited critics to comment that 759 Store has become a killer of small entrepreneurship, which it denies.
More than 95 percent of products sold in the chain are imported directly, bypassing local distributors who the firm believes may be susceptible to anti-competitive pressure by Hong Kong's established retailers.[5]
In April 2016, 759 announced the closure of 15 of its stores, blaming an appreciating yen and increased operating costs. The chain also adjusted pricing policy to make the discounts more consistent - a mark-up of around 35 percent on the dealer price, rather than the previous three levels of mark up, from 32 percent to 40 percent.[6]
Controversies
Coca-Cola incident
In early October 2011, Coca-Cola's Hong Kong franchise holder Swire Group stated that 759 Stores were selling Coca-Cola below its suggested retail price, and demanded that the chain raise its Coca-Cola retail price. 759 Store owner Lam at first declined, however, Swire Group later exercised its monopoly power over the beverage and increased the wholesale price of a can of Coca-Cola from HK$2 to HK$2.2.
On 10 October 2011, Lam decided to stop selling Coca-Cola.[7] Swire Coca-Cola later admitted they provided suggested retail prices to customers of various sales channels for their reference. This incident caused a stir and urged the establishment of the Competition Bill to protect the small businesses in Hong Kong.
References
- ↑ Wong, Imogene (2013-12-23), Growing 759 widens focus, The Standard
- ↑ 759 Profile & Executives - CEC International Holdings Ltd. Bloomberg. Retrieved on 2014-01-22.
- ↑ Wai Lam: Executive Profile & Biography - Businessweek. Investing.businessweek.com. Retrieved on 2014-01-22.
- ↑ "Lam Wai Chun". Hong Kong Celebrity Network. Retrieved 22 January 2014.
- ↑ 'New law no contest for supermarkets' power', SCMP, 13 June 2014
- ↑ Hong Kong snack chain 759 to close stores, cut discounts as it faces stronger Japanese yen and reduced sponsorship, SCMP, 28 April 2016
- ↑ "Company statement of Swire Coca-Cola HK on the incident of "759 Store"" (PDF).
External links
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Wikimedia Commons has media related to 759 Store. |