20 -12 - 201120 -12 - 2011

1. About Hong Kong Retail Management

Association (HKRMA)

2. Overview of Retail Industry2. Overview of Retail Industry

3. Retail Practitioners’ Study & Career Path

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About HKRMA

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About HKRMA

Our Representation

� Founded in 1983.

� The most representative retail association in Hong Kong.

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Mission

� To promote HK's retail industry through awards, education

and training.

� To present a unified voice on issues affecting retailers.

About HKRMA

HKRMA Service OfferingHKRMA Service OfferingHKRMA Service OfferingHKRMA Service Offering

1. Industry Representation• Legislative policy & regulatory measures

• Retail issues

2. Education & Training• Service & Courtesy Award

• Mystery Shoppers Programme

• Hong Kong Awards for Industries

4. Market Information• Monthly Retail Sales Statistics

• Seasonal Retail Surveys

• Website

5. Publications• Newsletter

• Year Book• Hong Kong Awards for Industries

• Professional Diploma in Retail

Management

• Workshops

• Seminars / Conference

• Study Tour

3. SME• Mystery Shoppers Programme

• Workshops / Seminars / Study tour

• Cases Sharing

• SME Portal

• Year Book

• Manpower Report - Salary Trends

6. Best Practice

• HKRMA Code of Practice

• No Fakes Pledge Scheme

7. Networking

• Luncheons

• Annual Ball

Laying Foundation for Sustaining Retail Growth

Seminars & Workshops Year 2011

12 Seminars & 24 Workshops

3,000 Participants

from over 1,200

Companies

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Professional Diploma in Retail Management (PDRM)

� Jointly Offered by the Association and the Chinese

University of Hong Kong – Tung Wah Group of

Hospitals Community College (CUTW)

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� Support New Diploma of Secondary Education

� API for 3-3-4 Academic Qualifications

Laying Foundation for Sustaining Retail Growth

� University & Institutes � Vocational Training Council

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� Support Workplace Attachment Programme

Embark on Qualifications Framework (QF)

Retail Industry Training Advisory Committee (ITAC)

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Working Group on

Writer Selection

Working Group

on SCS Content

Specification of Competency Standards (SCS)

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• Wholesale, retail and import & export, restaurants & hotels: 26.7%GDP Share

• Around 63,300*No. of Retail

Establishments

Source: Census & Statistics Department, HKSAR (Nov 2011)

• 252,000 persons* (7% of total labour force)

Retail Workforce

• 2010 (HK$ 324.9 billion)

• Jan-Oct 2011 (HK$329.3 billion) ( 25.2% growth year-on-year)

Total Retail Sales Value

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* Data as of June 2011

Retail Sales Value by Categories (Jan – Aug 2011)

Food, alcoholic drinks & tobacco

10%

Supermarkets11%

Books, newspaper & stationery

2%

Chinese drugs & herbs1%

Cosmetics & medicines

7%Others

8%

Source: Census & Statistics Department, HKSAR12

Fuels3%

Clothing, footwear and allied products

13%

Consumer Durable Goods (motor

vehicles, electrical goods, furniture,

others)16%

Department Stores10%

Jewellery, watches,clocks & valuable

gifts19%

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Favorable Factors Unfavorable Factors

�Shopping paradise

�Free trade market

�No sales tax

�High operating costs

�Surging Inflation

�Currency pegged to US Dollar

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�No sales tax

�Tourism

�Convention & Exhibition destination

�Currency pegged to US Dollar

�Skyrocketing rental

�Government Regulations,

e.g. Statutory Minimum Wage

Retail sales driven by robust tourismRetail sales driven by robust tourism

� 2010: Strong rebound

• Visitor arrivals: 36 million; +21.8% y-o-y

• Tourism Expenditure: US $27 billion (Shopping: 61.7% of total spending)

• Major Source of Tourist: Mainland China

� 63% of total arrivals

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� Total expenditure of overnight Mainland visitors reaches US$11.2 billion

(64.4% of total tourism expenditure)

� 2011: On the rising trend

• First 8 months’ visitor arrivals: + 16.2% y-o-y

• Whole year forecast: +8% y-o-y

Sources:

Hong Kong Tourism Board, HKSAR

Business Monitor International

Q2 2011: Q2 2011: �� Increase in rental lease renewal: mostly +25% to 50%Increase in rental lease renewal: mostly +25% to 50%

(some: +100%)(some: +100%)

Retail rents reached a rocketRetail rents reached a rocket--high levelhigh level

16 Source: Savills Research Hong Kong, August 2011

Inflation is eroding profit marginInflation is eroding profit margin

Overall cost of goods: + 10% to 20%

17 Source: Census & Statistics Department, HKSAR

Increasing pressure from Increasing pressure from

Government RegulationsGovernment Regulations

Nutrition Labelling

Scheme

Plastic Shopping

Bag Levy

(Imposed on

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Scheme

(since 1 July 2010)

(Imposed on

selected 2,800

retail outlets

since 7 July 2010)

Statutory

Minimum Wage

(since 1 May 2011)Competition Law

(forthcoming)

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Influx of International Brands

New Malls Established

New Store Formats

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New Store Formats

Healthy and Green Retailing

Market Polarization

Influx of International Brands

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New Malls Established

I Square

1881 Heritage

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I Square

ICC

Elements

New Store Formats

Upper-floor Stores

Pop-up Stores (Short-term lease outlets)

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Cube Shops

On-line Stores (Internet Retailing

Group Buying

Healthy and Green Retailing

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Market Polarization

High-end luxury brands are

supported by increasing Mainland

tourists

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tourists

Local consumers searching for lower

priced products for daily needs

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Uncertain global economy

High operation costs

Weakening consumer confidence

Competition from nearby regions

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Competition from nearby regions

Over-reliance on Mainland tourists

Closer economic tie with China

The world’s Shopping Paradise

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Excellent quality & service

New infrastructure projects

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In-Service Study

HKMA HKU SPACE

Pre-employment Study

Project Yi Jin – Certificate in Retailing

IVE - Higher Diploma in Retail & Merchandising Mgt

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Post Degree Level

HKU SPACE

Master of Science in Retail Management

HKRMAProfessional Diploma

in Retail Mgt

HKBUAdvanced Diploma in Business (Retail Mgt)

HKMAProfessional Diploma in Marketing & Retail

Mgt

HKU SPACEAdvanced Diploma in

Marketing & Retail Mgt

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Area Manager分區經理

Shop Manager店鋪經理

Asst Shop Manager店鋪副經理

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Shop Supervisor店鋪主任

Senior Sales高級營業員

Sales 營業員

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