A little bit of Mong Kok appears at Lego’s first Hong Kong store
Operator hopes to open three more outlets in coming three years despite retail downturn
A miniature Mong Kok built with thousands of plastic blocks graces Hong Kong’s first official Lego store, which opened its doors in Langham Place on Thursday despite the city’s flagging retail climate.
The Danish toy manufacturer’s local flagship is targeting adult enthusiasts as well as children, with management hoping its strong brand will keep footfall high despite the economic downturn.
Dr William Lo Wing-yan of Kidsland Holdings, which runs the Lego store, said there were plans to open three more Lego stores over the next three years.
“Toys are a resilient market during a downturn, more so than say fashion, jewellery or cosmetics, because adults can show more restraint when spending on themselves rather than when they spend on their children,” Lo said.
“Lego appeals to a wide demographic, from young kids to kid-adults,” Lo added, describing how at a preview session he saw some parents demonstrating greater enthusiasm for the toys than their children did.
“It’s a jolly and exciting store,” he said, confessing a particular fondness for the brand’s Star Wars-themed range.
Retail sales plummeted by 10.5 per cent in the first six months of this year in what has been the worst decline in 17 years, as a significant drop in mainland visitors and poor local demand prompted a slump in the once-booming sector.
The gloomy outlook is expected to persist into the closing months of this year, though tourist numbers have recently started to pick up again.
Lo said conditions brought about by the retail slump made opening a new store more favourable owing to lower rents and cheaper labour costs than last year.
Forecasting a greater variety of stores across Hong Kong as the likely result of brands downsizing, Lo said that the familiar experience of spotting several of the same stores on one street might become a thing of the past as market conditions entice more multinationals to set up shop.
“Entrepreneurs in Hong Kong should learn from the success of brands like Lego,” Lo said, balking at the idea that a greater global brand presence in the city might place further pressure on struggling local outfits.
“Over the last 10 years, people have got too inward-looking,” he said.
