eGG, the fast fashion optical boutique is proving such a hit with trend-chasing Chinese and Hong Kong consumers the brand is headed for Southeast Asia expansion.
The chain, owned by Hong Kong listed Stelux Holdings, reported a 178.8 per cent increase in Mainland China sales last year, prompting a fast tracking of store roll-out plans in that market and beyond.
Stelux says after such a positive performance from the chain in the year to March it will open more than 30 new stores in the coming year.
And it will expand the brand into Singapore, Malaysia and Thailand within the next 12 months.
Even in the lacklustre Hong Kong-Macau retail market, the chain excelled: With the store network expanded from 10 to 15, turnover increased 52.4 per cent to $71.4 million. Same store growth was 40 per cent.
Stelux believes the concept is popular with young Asian shoppers because it captures consumer preference for trendy and fancy optical eye wear.
Stelux has eGG stores in Hangzhou, Suzhou, Wuxi (Eastern China); Chongqing, Sichuan (Southwestern China); and Beijing, Tianjin, Shenyang, Dalian (Northern China).
“We expect to see a good performance from eGG Hong Kong and eGG Mainland China in the coming fiscal year, as encouraging momentum has been carried through into the first quarter of 2016,” the company said.
While still essentially in startup phase, a fast store rollout program is racking up the costs, but individual stores are trading profitably.
eGG Hong Kong came very close to break even, incurring a small loss of $700,000, compared with a loss of $7.3 million the previous year.
In the Mainland, driven by new store openings, eGG’s turnover rose to $42 million and same store sales rose 27 per cent.
Despite the continual rollout of new stores – there were 24 operating as at the end of June – the Mainland China loss narrowed slightly to HK$15.3 million, from $16 million, but store level profit was achieved in April and May 2015.