Kwok Siu-ming: Transforming a 5-Square-Meter Cosmetics Counter into Hong Kong's Beauty Retail Leader

Origin

In 1978, Kwok Siu-ming started his business at a 5-square-meter cosmetics counter opened by his father, with daily revenues of only 32 HKD, barely enough to sustain one person's livelihood. At the time, Hong Kong's cosmetics market was dominated by department store counters with high pricing and limited brand choices; Kwok Siu-ming discovered that a one-stop, multi-brand discount model had market potential. In the initial stage, no brand was willing to officially supply goods, requiring him to acquire products through various unofficial channels, gradually accumulating customers through low profit margins with high turnover and price advantages.

Milestones

Turning Points

• Started from a 5-square-meter small counter in 1978, entering the cosmetics retail track through low profit margins and high turnover
• Listed on the Stock Exchange of Hong Kong in 1997, accelerating store expansion with the aid of capital
• Driven by mainland tourists during the 2003 Individual Visit Scheme policy dividend period, propelling rapid performance growth
• Impacted after 2014 by cross-border e-commerce and direct-to-consumer expansion of Japanese and Korean brands, leading to consecutive declines in same-store sales
• Suffered historical record losses and was forced to close stores and lay off employees during the 2020 COVID-19 border closures
• Achieved a 160% profit surge in the 2024/25 fiscal year through store closures to stop losses and operational optimization

Failures & Pitfalls

• Over-reliance on mainland tourist traffic after 2014 led to consecutive years of declining same-store sales
• The 2019 social unrest in Hong Kong further battered tourist traffic, forcing the closure of loss-making stores
• Suffered maximum historical losses during the 2020 COVID-19 border closures, where e-commerce transformation failed to make up for losses
• Delayed deployment of e-commerce platforms and live-stream selling, resulting in market share diversion by channels such as Tmall Global and overseas shopping platforms
• Failed to timely adjust supply chain strategies amidst brand direct-to-consumer operations and the rise of Japanese and Korean beauty

Core Data

• 1978 Daily Revenue：32 HKD (publicly available data basis, independent verification not performed)
• Founding Year：1978 (publicly available data basis)
• Listing Year：1997 (publicly available data basis)
• Stock Code：00178 (publicly available data basis, independent verification not performed)
• Peak Revenue：Approximately 8.0 billion HKD (publicly available data basis, independent verification not performed)
• 2024/25 Fiscal Year Revenue：4.38 billion HKD (publicly available data basis, independent verification not performed)
• 2024/25 Fiscal Year Profit Growth Rate：160% (publicly available data basis, independent verification not performed)
• Peak Store Count：Over 100 stores (peak period across Hong Kong, Macau, and Mainland China) (publicly available data basis, independent verification not performed)

Competitors / Peers

Sa Sa International's major competitors include local Hong Kong same-type cosmetics and health product retail chains such as Bonjour Holdings, Watsons Group, and Mannings, as well as cross-border e-commerce platforms from mainland China like Tmall Global, JD Worldwide, and Onion Group. In addition, as Japanese and Korean beauty brands expand direct operations in the Chinese market, official flagship stores of brands such as Amorepacific, Shiseido, and Kao pose a direct threat to Sa Sa's middleman status. In recent years, it has also faced competition from emerging mainland Chinese beauty collection stores like The Colorist and Harmay; these new retail formats enter the youth market through experiential retail and social media marketing, creating new challenges for Sa Sa's traditional store model.