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Strategic approach helps legwear and lingerie brands pioneer move into the city’s first tier retail market
If you've walked through Hong Kong's traditional retail hotspots like Central and Causeway Bay, emerging hubs like Mong Kok, or malls in Sha Tin and Kowloon Bay recently, chances are you've spotted a Calzedonia or Intimissimi store.
The legwear and lingerie brands, under the umbrella of Italian fashion company Calzedonia Group, have been expanding across the city since 2015. Since May 2016, we have assisted them in successfully opening ten new stores in both prime shopping malls and high street locations, each with an accompanying warehouse space.
Considering Calzedonia's ambitious timelines, leasing ten stores in two years—each in a prime retail location—without compromising standards was no mean feat.
Tried and tested, strategic partnership
Amid a sluggish retail sales and tourism market, and with fierce competition for stores, this required a strategic approach.
As Calzedonia's long-term real estate advisor, we took a long-term view, encouraging Calzedonia to consider moves into secondary retail markets to further develop brand loyalty and business growth.
- Matteo Veronesi, Managing Director, Calzedonia Hong Kong Limited
We leveraged our comprehensive database of 12,500 Hong Kong retail outlets to analyse which retail districts are best suited to meet the client's customer personas, where their target customers shop, and undertook competitor analysis to identify where those target customers are spending their money.
"JLL's thoughtful long-term approach to our expansion plans has really paid off," says Matteo Veronesi, Managing Director for Calzedonia Hong Kong Limited. "The team have taken the time to really understand our business goals, and their market intelligence has been invaluable in helping us move quickly to secure stores in key retail locations across Hong Kong."
Among Calzedonia's recent wins—an Intimissimi store on one of the most desirable retail streets in the world, Kai Chiu Road in Causeway Bay, famed for its foot traffic and close to one of Hong Kong's flagship Apple Stores. Despite a significant number of contenders for the outlet, we were able to secure the space and negotiate a significant rental discount.
We did this by not only focusing on the dollar figure, but by using our market intelligence to ensure we identified the opportunity early and leveraging our reputation as a trusted and ethical operator in the market.
Upholding international standards
Our diligence in maintaining international standards was further demonstrated during the leasing of a Calzedonia store on Sai Yeung Choi Street in Mong Kok. When our retail agents gained access to inspect the property, they discovered an illegal mezzanine floor that had been built by an earlier tenant. We persuaded the landlord to remove the hidden cockloft, at his expense, ensuring Calzedonia didn't waste any money or time removing the structure.
Having convinced the landlord to pick up this extra expense, we were still able to broker a market-leading price for the property and negotiate a 45% decrease in monthly rent.
Going the extra mile
Our work with Calzedonia Group doesn't stop here—we continue to help them explore opportunities across Hong Kong. The client's satisfaction with our work, and the close client-agency relationship we've developed, means our partnership has now extended across the border into mainland China. Our retail leasing colleagues in the PRC have now successfully secured seven stores for Calzedonia Group in Shanghai.
"We look forward to working closely with the team in future to achieve further success," says Veronesi.
Shopping for a new city to expand your retail brand? Why not
download our Retail in Asia Pacific guide.
For more information on our retail leasing services,
visit our retail webpage or contact
JLL's work with Calzedonia Group was honored with Certificates of Excellence in the 'Retail Team of the Year' and 'Young Surveyor of the Year' categories at the
RICS Awards 2018 Hong Kong.
Head of Retail, Hong Kong
+852 2846 5809
Director, Retail Tenant Representation, Hong Kong
+852 2846 5810
Senior Manager, Marketing & Communications
+852 2846 5008