‘Keep going. Keep growing.’ Chapter 2: Why Four Seasons Teahouse turned to O2O marketing amidst lockdowns in HK

This article was done in collaboration with Facebook.

The past year has certainly been a challenging time for most companies, especially small and medium-sized businesses (SMBs). SMBs play a crucial role in the Hong Kong economy with 98% of its businesses being from the sector. Many of these SMBs also operate in the retail space.

Last year, with lockdowns being implemented across the city, many SMB businesses knew they had to beef up their digital strategies by leveraging on platforms such as social media, for example, to reach a wider pool of potential customers.

A recent study by KPMG, GS1 Hong Kong and HSBC titled “Retail’s Realignment: The Road Ahead for Omni-Channel in the Greater Bay Area” which zoomed in on Hong Kong’s retail scene – often the playground for many SMBs – also nudged players in this space to embrace digital marketing strategies.

The study found that the majority of the 2,053 consumers and 400 senior retail industry executives expected a seamless transition from an in-store experience to an online one. Moreover, about 73% of Gen Z consumers in Hong Kong said they wanted a swift response to product enquiries via online chat, and expected brands to use tech, including AI, to help shortlist new products. 

While consumers are clear in their needs, the study found that retailers are struggling to keep up, with 39% of businesses focusing on the integration between physical stores and online. 

The Hong Kong government is also clear on the important role SMBs play in its economy. One of the many programmes it created to support SMBs in the city is a low-interest loan guarantee programme amounting to a potential HK$50 billion of support. 

That said, one company in Hong Kong which has swiftly adapted its business strategy and embraced O2O marketing strategy has been Four Seasons Teahouse, which was founded by Vicky Lau, who works closely with her brother and business development manager, Danny Lau. 

In an interview with Facebook, in collaboration with MARKETING-INTERACTIVE, founder Vicky shared that during the pandemic, sales were heavily impacted at its physical stores, especially in populated areas such as Mong Kok. As such, the company knew it had to pivot and focus on online sales and further leverage the power of social media.

Danny explained that social media has become a crucial channel for the brand to reach out to potential customers and create a community. This has led to many of its current stream of customers and business being generated from Facebook. 

“Facebook plays an important role in building our brand and is a bridge between customers and the business,” Danny said. 

Aside from this, Four Seasons Teahouse also works with HKTVmall and Watsons to enable consumers to place orders online, and pick up the products offline at their physical stores across Hong Kong. This offered a flexible shopping experience to consumers. 

Danny said having a dual approach, combined with the power of social, is a strategy the company will keep pushing to meet the needs of its customers.

Learn more about the tools and resources to help SMBs here.