Main Topic: Hong Kong Retailers Adapt by Adopting

Hosts: James Stanworth , Clyde Warden

Hong Kong's retailing space is often perceived as ultra modern, catering to many nationalities, and the world is flat if you are an American or a Brit looking for that American and British retailing. Many of the shopping malls look like something right of the film Logan's Run ! Ultra modern Western retail formats that emphasize what we call inside-in with lots of entrance space, lots of empty space, and floors so clean you can use them as mirrors. Not far off though, are the retailing formats that play to the Chinese social psychology of renao. Packed stores with retail space pouring out into the sidewalk, what we call inside-out retailing. This format is obvious when combined with traditional categories, like herbal medicine, some DIY, and wet markets, but successful modern retailers have learned from these formats. James and Clyde went searched Hong Kong to find how modern retailers co-opt traditional Chinese consumer behavior by incorporating renao-based retail formats. They did not need to look far.

Professor Ho, Suk-ching 何淑貞 ž is a leading expert on how wet markets have adapted, and how supermarket retailers have adapted by adopting. In the case of Wellcome, not only is there a metaphor of a fresh market, as the Wellcomes in Taiwan have, but an actual fresh meat butcher stall is placed in the store.

 

From Shanghai, Clyde and James summarize their retailing observations in Hong Kong. Supermarkets have been very successful at adopting or co-opting traditional retailing values and customs.

Supermarkets in Hong Kong have adapted by adopting.

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The Show (Video & Audio):

Photos:

• 1) Ultra modern malls (looks like something out of Logan's run). 1) Ultra modern malls (looks like something out of Logan's run).
• 2) Marks and Spencer fits in nicely. 2) Marks and Spencer fits in nicely.
• 3) Classic inside in retailing format. 3) Classic inside in retailing format.
• 4) Throughout HK traditional forms of retailing can be found, here inside out. 4) Throughout HK traditional forms of retailing can be found, here inside out.
• 5) Chinese herbal medicine shop. 5) Chinese herbal medicine shop.
• 6) High density spilling outside (inside out format). 6) High density spilling outside (inside out format).
• 7) Wet market (road market). 7) Wet market (road market).
• 8) On Lockhart Road, this wet market has two entrances. 8) On Lockhart Road, this wet market has two entrances.
• 9) Government inspection notification. 9) Government inspection notification.
• 10) Large entrance right on to the road. 10) Large entrance right on to the road.
• 11) Vegetables and fruits on the first floor. 11) Vegetables and fruits on the first floor.
• 12) Easy access for inspection by shoppers. 12) Easy access for inspection by shoppers.
• 13) A night wet market. 13) A night wet market.
• 14) Shops with similar offering tend to group together. 14) Shops with similar offering tend to group together.
• 15) As in Taiwan, wet markets are not only about food. 15) As in Taiwan, wet markets are not only about food.
• 
• 17) Right next to the wet market, a ParknShop. 17) Right next to the wet market, a ParknShop.
• 18) For those packaged good, a steady flow of consumers. 18) For those packaged good, a steady flow of consumers.
• 19) Very small floor space in this supermarket (almost a convenience store). 19) Very small floor space in this supermarket (almost a convenience store).
• 20) Even here, the FRESH is emphasized. 20) Even here, the FRESH is emphasized.
• 21) Along one wall, fresh fruits for sale. 21) Along one wall, fresh fruits for sale.
• 22) Even through one street over is a wet market. 22) Even through one street over is a wet market.
• 23) The Wellcome we found as entering down a stairway. 23) The Wellcome we found as entering down a stairway.
• 24) Just after the entrance, fresh fruit and the meat area. 24) Just after the entrance, fresh fruit and the meat area.
• 25) The meat area looks dropped in from a wet market. 25) The meat area looks dropped in from a wet market.
• 26) Although it was nearly 9PM, fresh meat was still on display. 26) Although it was nearly 9PM, fresh meat was still on display.
• 27) Pork on hooks, just like a wet market. 27) Pork on hooks, just like a wet market.
• 28) The staff are still I the stall, starting to clean up. 28) The staff are still I the stall, starting to clean up.
• 29) The emphasis on FRESH is everywhere. 29) The emphasis on FRESH is everywhere.
• 30) Uniforms reinforce the Wellcome brand. 30) Uniforms reinforce the Wellcome brand.
• 31) The whole processing area is very visible. 31) The whole processing area is very visible.
• 32) Very little in the way of frozen or chilled meat. 32) Very little in the way of frozen or chilled meat.
• 33) Like Taiwan, laws require placing the fresh meat in chilled displays, but customers always want access. 33) Like Taiwan, laws require placing the fresh meat in chilled displays, but customers always want access.
• 34) Whole chickens ready for sale. 34) Whole chickens ready for sale.
• 35) Cuts of pork, which can be prepared any way you like by the staff. 35) Cuts of pork, which can be prepared any way you like by the staff.
• 36) James tests out the service. 36) James tests out the service.
• 37) Getting an education on chicken. 37) Getting an education on chicken.
• 38) Small differences in packaging turn out to be for different recipes. 38) Small differences in packaging turn out to be for different recipes.
• 39) Fruits and vegetables are laid out for inspection (very like a wet market). 39) Fruits and vegetables are laid out for inspection (very like a wet market).
• 40) The rest of the store is very compact. 40) The rest of the store is very compact.
• 41) Special sale items are moved into the isles, in imitation of inside out retailing. 41) Special sale items are moved into the isles, in imitation of inside out retailing.
• 42) Even with no people, the space is very renao, and inviting. 42) Even with no people, the space is very renao, and inviting.
• 43) Of course for Western retailers, this may be hard to accept. 43) Of course for Western retailers, this may be hard to accept.
• 44) Check out is organized, with a winding path for lining up. 44) Check out is organized, with a winding path for lining up.
• 45) Fast food with an international flavor is common in HK. 45) Fast food with an international flavor is common in HK.
• 46) Lines attracting lines are commonly found just like in Taiwan and China. 46) Lines attracting lines are commonly found just like in Taiwan and China.
•  

Show Links:

• An early paper by Prof. Ho: Development Of Supermarket Technology: The Incomplete Transfer Phenomenon
• A later paper by Prof. Ho: Supermarkets in Hong Kong- In Search of an Eventual State?
• Google Scholar list of Prof. Ho's publications (lots of great work here)

Bottom Line:

• Wet markets are serious competition to Western format food retailing chains.
• Easy to miss wet markets in Hong Kong if you do not know where locals shop.
• Same emphasis on freshness in Hong Kong as throughout Greater China.
• Fusion of traditional shopping values with modern formats is the trend.
• Key Chinese traditional retailing formats must be adopted for real success.
• Utilitarian values linked with Chinese traditions need to be paid attention to.
• Hedonistic consumption can be linked to more Westernized products (such as the more packaged goods).
• Traditional Chinese retailing influences are easily overlooked, but for local consumers, they are very important and should not be ignored.

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