Sa Sa International strategises to focus more health and fitness product portfolio

Sa Sa International is actively expanding its health and fitness product portfolio in Hong Kong. It has obtained the sole distributorship of the Korean health and beauty brand "BB Lab" for the markets of Hong Kong and Macau SARs.

BB Lab's collagen powder products are sold across Sa Sa's retail stores in Hong Kong and Macau SARs and its shopping website (Sasa.com), as well as various online sales channels. This is part of Sa Sa's strategy to introduce more health and fitness brands to enrich its product portfolio and seize ever-growing opportunities in the health sector. The group is determined to develop its health and fitness product segment and has actively introduced a number of popular products starting from the beginning of this year such as Zone ABC Juice with slimming effect, the Lemona Alive Lactobacillus, the slimming jelly from SNP, and the newly introduced collagen powder products from BB Lab.

This will offer consumers in the Hong Kong and Macau SARs more options in the health and fitness product category, said the brand. Currently, the group is selling around 300 stock keeping units (SKUs) of health & fitness products from approximately 100 brands in the Hong Kong and Macau SARs. It added that consumers are more health-conscious now due to the COVID-19 pandemic. Benefitting from the growing consumer demand, the sales of Sa Sa's health & fitness products in the Hong Kong and Macau SARs during the quarter of April to June this year increased by more than 110% year-on-year, and over 40% quarter-on-quarter.

The group is optimistic towards the market potential of the health and fitness segment. Through expanding this business segment, the Group believes that it will be able to attract more consumers, thereby boosting Sa Sa's market share in the Hong Kong and Macau SARs.

Simon Kwok, SBS, JP, chairman and chief executive officer of the Group, said, "As a one-stop beauty product specialty store, Sa Sa has always been committed to sourcing high-quality beauty products from around the world. We make timely adjustments to our product portfolio and introduce new products to satisfy ever-evolving consumer preferences.”

Kwok added that the COVID-19 pandemic has sparked consumers' ardent demand for health & fitness products, which is bringing new impetus for growth to the Group. “In the future, we will continue to introduce more exclusive brands to enrich our health and fitness product portfolio, aiming to bring more diversified and quality products to our customers. This move will enable Sa Sa to enhance market penetration in the Hong Kong and Macau SARs, and strengthen our overall competitiveness and business performance,” he added.

As part of the product portfolio expansion strategy, the Group has introduced five products from the Korean brand BB Lab to the Hong Kong and Macau SARs. Among them, the BB Lab collagen powder products and slimming tablets endorsed by the well-known Korean celebrity Yoona from Girls' Generation are particularly popular.

A pop-up store dedicated to selling BB Lab products is set up at Sa Sa Supreme, the lifestyle concept store of Sa Sa located in Causeway Bay, in the hope of attracting younger local consumers and bolstering sales, leveraging the celebrity effect. Apart from the physical retail stores and shopping website of Sa Sa, BB Lab products will also be distributed to various online sales channels of the group.

Meanwhile, Sa Sa International also has plans to close up to 20 stores in Hong Kong in the next three quarters but will focus more on its online business across markets. The company announced its annual results on 16 June. As of 31 March 2021, the total number of Sa Sa’s retail stores in Hong Kong and Macau SARs was reduced from the peak of 118 two years ago to 100, with a net decrease of 12 as compared to the previous year. All closed stores were in Hong Kong. Among which, over 80% were located at tourist districts such as Tsim Sha Tsui, Causeway Bay and Mong Kok, To control the expense, the company said it will focus on rationalising its store network and reducing store expenses to pursue its long-term goal of optimising cost structure. Moreover, Sa Sa International is planning to close 15 to 20 stores by the end of 31 March 2022.

Meanwhile in China, the company said as the pandemic has been well managed as compared to the rest of the world. During last fiscal year ended on 31 March 2021, Sa Sa International opened 17 new stores, among which seven were located in Southern China.

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