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Apple retail to invade Hong Kong with massive two-story flagship shop

post #1 of 16
Thread Starter 
Apple plans to make a big splash this fall with its first retail store in Hong Kong, a sprawling, double-decker outlet that will serve as the latest anchor shop at the high-profile International Finance Center (IFC) Mall.

Located in the city-state's Central district, the IFC plaza spans 4.7 million square-feet and is home to some 200 high-end retailers and entertainment outlets, financial offices and Hong Kong’s most prestigious hotel and suite -- the 55-story Four Seasons Hotel Hong Kong.

According to M.I.C. gadget, Apple plans to spend more than $20 million on construction alone, in addition to another $100 million as part of a 10-year lease commitment, on the 15,000-square-foot shop that will occupy two floors in an anchor location on the mall's far east side.

When it opens this September, the shop is expected to employ more than 300 employees who'll be tasked with serving an estimate 40,000 customers each and every day -- more than 4 times the volume of an average U.S. Apple store. It's expected to arrive on the heels of a similar store scheduled to open in late August on Shanghai’s famous Nanjing Road, China's largest yet.

"A recruitment drive is underway but the store seems to be having problems recruiting people," according to the report. "There is not enough qualified people, and in Hong Kong, all the qualified ones are either rich or getting paid more elsewhere."

As such, it's rumored that Apple store employees will be flown in from all over the world to help launch the store around the same time that Apple is rumored to introduce its fifth-generation iPhone.







A leading travel destinations in Asia for mainland tourists, Hong Kong is widely regarded as a shopping oasis, rife with luxury shops that help lure some 80% of mainland tourists from their hometowns for shopping sprees that average $1540 on any given day. More than half of that sum is said to be spent on luxury clothing and electronics goods.

In addition to serving as an optimal travel destination for residence of China's Guangdong province over Beijing and Shanghai, its also cheaper for residence to purchase Apple goods in Hong Kong given current exchange rates.

For example, M.I.C. gadget notes that Apple's MacBook Air starts from HK$ 7,588 in Hong Kong but costs considerably more in China, where it starts from RMB 7,998.





The advent of an official retail store in Hong Kong should also help to stifle the region's flourishing grey market for Apple devices, where vendors routinely mark up prices for iPads and iPhones once Apple's local authorized resellers run out of stock.

Apple reportedly plans to followup the launch of its shop at the IFC Mall with a second Hong Kong location spanning and even greater 20,000 square feet at Hysan Place in Causeway Bay sometime in 2012.
post #2 of 16
I'm pretty shocked that they weren't already there.
post #3 of 16
Huge retail stores are nothing new for China.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #4 of 16
Perfect spot for it. The existing reseller in IFC must be disappointed, but not a bad spot to stop before grabbing Airport Express. Surprised Causeway Bay comes before West Kowloon though. I don't know/remember Hysan Place...

(edit-- Hysan Place looks to be a great spot, surprised I didn't notice the building (under construction) during the 7's...)
post #5 of 16
Will Apple become the new Starbucks? At this pace they will soon reach their saturation point.
post #6 of 16
Is China Mobile in Hong Kong?

This makes sense since Apple is launching the Iphone 5 in September according to an earlier Appleinsider post.
post #7 of 16
Quote:
Originally Posted by rp2011 View Post

Will Apple become the new Starbucks? At this pace they will soon reach their saturation point.

350 stores. A "saturation" point? Hardly.

Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone] exists, it doesn’t deserve to.
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post #8 of 16
From the first and second picture, I would imagine the store will have it own (glass) facade within the IFC instead of just a two separate floors connected by lift/escalator as traditional 2-storey mall stores would be. Should be great.
post #9 of 16
Quote:
Originally Posted by phoebetech View Post

Is China Mobile in Hong Kong?

No.

Additionally, Apple has the right to offer an iPhone 5 in multiple 3G flavors, including TD-SCDMA. The China Mobile iPhone may not even be a traditional iPhone, but a basic device that's 2G only, and smaller than the iPhone 4 or 5.
post #10 of 16
Quote:
Originally Posted by rp2011 View Post

Will Apple become the new Starbucks? At this pace they will soon reach their saturation point.

LOL in Asia-Pacific alone they need at least 50 more stores. Heck, at least 10-20 in China itself in the next 10 years.

This is all assuming there's enough product to supply all those stores and the demand for iOS devices and Mac laptops.
post #11 of 16
Tonton must be overjoyed! Where are you?
post #12 of 16
Quote:
Originally Posted by cloudgazer View Post

I'm pretty shocked that they weren't already there.

Me too, there are lots of high priced shops there. When you walk in to the Times Square mall and look up it is amazing.
post #13 of 16
Quote:
Originally Posted by nvidia2008 View Post

Tonton must be overjoyed! Where are you?

Yes, it's great news. It should make after sales service much better. And I live quite near IFC on HK Island side. It's a great location, and the obvious location.

That said, I'll still be spending most of my tech dollars in Mongkok and Wanchai. When I can get an iPod Touch case for HK$15 (less than US$2), there's not much reason to buy one at the Apple Store for HK$200.
post #14 of 16
KIRFers on the side walks will be ROFL.

"Like I said before, share price will dip into the $400."  - 11/21/12 by Galbi

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"Like I said before, share price will dip into the $400."  - 11/21/12 by Galbi

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post #15 of 16
Quote:
Originally Posted by aaarrrgggh View Post

Perfect spot for it. The existing reseller in IFC must be disappointed, but not a bad spot to stop before grabbing Airport Express. Surprised Causeway Bay comes before West Kowloon though. I don't know/remember Hysan Place...

(edit-- Hysan Place looks to be a great spot, surprised I didn't notice the building (under construction) during the 7's...)

You'd be surprised but Causeway Bay was probably chosen because of the foot traffic compared to West Kowloon. That stretch of road in front of the Sogo department store is one of the heaviest in the world. As it goes rental rates there are colossal also (because of it). I expect Hysan Place to be pitched as the newest and most impressive shopping destination in HK when it opens next year. Would be interesting to see how Apples actual presence in HK would affect other resellers and Apple support groups when they open.
post #16 of 16
Quote:
Originally Posted by mikemikeb View Post

No.

Additionally, Apple has the right to offer an iPhone 5 in multiple 3G flavors, including TD-SCDMA. The China Mobile iPhone may not even be a traditional iPhone, but a basic device that's 2G only, and smaller than the iPhone 4 or 5.

Apple sells unlocked phones in Hong Kong. You can get subsidized iPhones from several carriers (these will carry a contract), but the phones are still unlocked. When I go abroad with my HK iPhone, I almost always swap in a prepaid card (sometimes I have to cut it down to the mini-size).

I can't imagine anyone here buying a locked phone. Everyone carries GSM phones and we change carriers whenever we can get a better deal!
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