Sa Sa International Q1 sales fall 56 percent; focus shifts to domestic consumer

Sa Sa International Q1 sales fall 56 percent; focus shifts to domestic consumer

THE WHAT? Sa Sa International has reported a 56 percent drop for its 2020 Q1 wholesale and retail sales to HK$892.4 million (US$115.1 million). 

THE DETAILS The Hong Kong-based cosmetics company has seen a huge decline in Chinese tourist sales, which dropped by 80.8 percent, with its overall transaction volume falling by 43.4 percent. 

However, the company reported a 4.1 percent YOY rise in local custom, with Hong Kong customers now a prime focus for Sa Sa. 

Taking to an exchange filing, Simon Kwok Siu-ming, company Chairman and CEO said, “Local customers now account for most of the group’s revenue … [we] will continue to adjust its product mix to meet their demand for protective and pandemic-related products, and other beauty products.”

THE WHY? Company sales have been hit by two factors; the Hong Kong anti-government protests have reportedly affected sales while the COVID-19 pandemic has also impacted revenue. 

As a result Sa Sa is looking to reduce its presence in Hong Kong as well as looking for short-term rental concessions from landlords on leases set for expiration, according to South China Morning Post. 

According to the filing, “In view of the persistent severe operating environment, the group will continue to implement strategies for reducing costs, so as to maintain its competitiveness and reduce losses.”

IN CONVERSATION WITH...

FORMULA FRIDAY

FASHION

TRAVEL

WELLNESS

PROFESSIONAL BEAUTY

OPINION

TOP 50 BRANDS