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Lane Crawford: Store all out to woo shopaholics By Francesco Guerrera in Hong Kong Published: September 19 2005 16:53 | Last updated: September 19 2005 16:53 
But the images, unusually risque in a city where outdoor advertising is more commonly used to warn citizens of the dangers of dengue fever, also marked a radical departure for Lane Crawford, one of Asia’s oldest department store groups. Until its decision to sponsor the scantily-clad models advertisements – and host Agent Provocateur in its flagship store – the company’s most famous slogan had been “The place to buy anything from a pin to an anchor”. That was in 1889. Half a century earlier, Thomas Ash Lane and Ninian Crawford, two Scottish entrepreneurs, founded the company in a bamboo shack to sell supplies to the sailors and colonial staff passing through Hong Kong’s bustling port. Since then, Lane Crawford has passed into local hands – it is part of the private empire of the tycoon Peter Woo – added four stores in Hong Kong and one in Shanghai, and became a natural destination for the shopaholic dwellers of the former British colony. But, like other iconic retailers around the world such as Harrods and Galeries Lafayette its long-standing position as market leader had dulled Lane Crawford’s image, leaving it open to attacks from nimbler, more vibrant rivals. Recognising the danger of being left behind by Hong Kong’s fickle shoppers, the company has, over the past two years, tried to revamp its strategy and product offering. The person charged with taking Lane Crawford into a new era was Mr Woo’s 28-year-old daughter Jennifer – an appointment that raised eyebrows in Hong Kong’s business community. Nevertheless, the makeover is timely as Hong Kong is witnessing a flurry of retail activity with plans for new “concept stores” from the likes of Louis Vuitton and, more worryingly for Lane Crawford, the opening of a new Harvey Nichols, a direct competitor controlled by local entrepreneur Dickson Poon.
“We feel that the IFC store can be favourably compared with the most prestigious stores around the world,” says David Riddiford, a former executive at the UK’s Selfridges who is Lane Crawford’s senior vice- president. “However, it is unusual for a department store brand to have multiple locations in one city. “There is only one Harrods in London, there is only one Galeries Lafayette in Paris. “With four locations in Hong Kong, we have the opportunity to differentiate each store by offering different destination offers in each store.” Hence the emphasis on lingerie in the IFC store and the HK$120m spent to refocus another centrally located outlet on casual wear. From the few financial details Lane Crawford is willing to disclose, the strategy seems to be paying off. According to a statement from Victor Kan, the finance director, the company’s turnover in the 12 months to March was a record HK$1.9bn – a 19 per cent increase on the previous year. Sales growth was in double digits for all comparable stores, probably helped by the rebound in Hong Kong’s economy and a surge in the number of tourists from China. Lane Crawford’s strategy of focusing on own-bought merchandise rather than allowing brands to set up concessions in its stores – a model used, among others, by Harvey Nichols, is suited to periods of economic expansion. As long as customers queue at the till, the risk of being stuck with unsold stock remains low and Lane Crawford can reap a higher margin on products it has already bought. But with the Hong Kong market becoming increasingly competitive and saturated, Lane Crawford is looking for expansion in neighbouring China. Mr Riddiford says the company is looking to build flagship stores in both Beijing and Shanghai. “In Beijing and Shanghai, we are looking for sites of between 60,000 square feet and 100,000 square feet. “Our aim is to have a full-service department store, which requires more space than the current Shanghai store of 25,000 square feet,” he says. A big splash in China might help Lane Crawford achieve its stated aim of being “Asia’s most talked about style destination”, however winning over the region’s sophisticated shoppers might require more than just talk and sexy women. |
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Over the past few months, Hong Kong’s male motorists have been haunted by visions of giant women in revealing lingerie. Positioned in strategic traffic spots, the billboards have heralded the arrival of the famously lascivious Agent Provocateur brand to the territory.
