New trend among fashion brands: setting up cafes to drive up store traffic
Retailers from Uniqlo to Dior use cafes as a marketing tool to reconnect with young consumers
A new trend has emerged in Hong Kong’s commercial property landscape as the retail sector slowly recovers: non-food and beverage (F&B) brands are turning to casual dining to entice young consumers and get more out of their premises.
Japanese apparel retailer Uniqlo carved up some space for a cafe in its refurbished Cityplaza outlet in Taikoo Shing last year and American luxury brand Ralph Lauren went further by opening standalone Ralph’s Coffee shops in high-end malls like Harbour City in Tsim Sha Tsui and Pacific Place in Admiralty.
French fashion houses Dior and Louis Vuitton had also opened pop-up cafes in recent years and months, while online brokerage firm Longbridge opened a Longbridge Cafe in Mong Kok late last month.
“Non-F&B brands in the Asia-Pacific, especially luxury fashion brands, have included cafes in their business to connect with young consumers and excite them with a new experience,” said Nathanael Lim, insight manager for beverages in Asia at market research firm Euromonitor International. “Cafes are popular among young consumers and are used as a marketing tool to drive consumer traffic to their luxury fashion store.”
The outlook for retailers has brightened after official data showed overall sales in August rose by 3.8 per cent year on year, marking a fourth straight month of growth.