mbreport 94
Adapt or perish N
The boom is not benefi ting every retailer. For many small shops it is a fi ght to survive
BY SOFIA JESUS
o one seems to doubt that Macau’s retail market is grow- ing rapidly, changing the face
of the city. But can traditional retailers keep pace? Macau Association of Retail- ers and Tourism Services vice-president Osborn Lo sounds a warning: “If all the small businesses disappear, Macau is no longer special.” From his perspective, people can buy brand-name goods in European
countries making a trip to Macau for the same items redundant. A more tradition- al form of retailing is what helps make Macau different. “The government needs to support
small businesses to maintain these special features. This is Macau’s image,” he says. The association represents about
50 shop owners, both big and small. It is trying to help its members survive in a changing environment. It is trying to
teach them how to change the way they present and promote their products in order to stay in business. Three representatives of the asso-
ciation - Mr Lo, Patrick Choi and Philip Yeung -- told Macau Business that small shops need to understand the new real- ity, but that the government should also continue to offer a helping hand. As the market gets bigger, Mr Lo
says sellers of luxury brands and more traditional retailers alike will face similar problems in running their businesses. “We have to restructure our strategy,” he says. Mr Choi is the general manager of
Enoch International, which represents sev- eral international brands. He argues that for more traditional shop owners a change in strategy means changing their mindset, their service skills and their product.
Philip Yeung, Patrick Choi
and Osborn Lo
Encouraging change The association is trying to organise train- ing courses and other activities to help owners. It is designing tourist maps, one of them available online, that lead tourists to shops belonging to the association’s
WISING UP TO FRANCHISING W
hile some still wonder how to adapt in order to stay in business, others are turning to franchising.
Vincent Ip is one of the directors of the Macau Chain
Stores and Franchise Association. He says that when people have some money in their pockets and choose to set up their own businesses, franchising is the fi rst choice for many. It is becoming more and more popular in Macau. Mr Ip told Macau Business that some local people do not
have a clear idea about doing business, so franchising has the advantage of providing them with the training, the knowledge and the experience of others. Many of the brands franchised here are from Taiwan,
which enjoys strong cultural similarities with Macau. The most popular franchising brands are food brands. Mr Ip estimates that MOP500,000 to MOP1 million is
“quite enough” to start a business selling a brand from Taiwan. The exact amount depends on the brand. Problems in sourcing labour are also reduced by operating
a franchise, he said. Employees know they are selling an international brand, so they are more loyal than they would be to a local business. It is also easier to hire part-time workers. There are some successful case studies already in the
OCTOBER 2010
market. The Royal Supermarket chain had just a few branches in Macau 10 years ago but now it has more than 20, Mr Ip says. The San Miu Supermarket chain has a similar history and it now has 14 branches. Mr Ip predicts more investment in franchising in the future.
Competition, he believes, will be good for business. “They can learn from each other,” he says.
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