Admart Case Study
AdMart
© Maris G. Martinsons 2001, last updated in 2005
This case is based primarily on interviews with key players conducted by the author in 2000 and 2001. Data from the interviews are supplemented by information extracted from media reports.
Hong Kong-based businessman Jimmy Lai Chee-ying launched adMart in June 1999 to sell groceries over the Internet. This start-up was the cornerstone of an effort by Mr. Lai to once again demonstrate his entrepreneurial acumen by successfully diversifying into e-commerce. Back in 1981, Jimmy Lai set up a garment factory and started to sell casual clothing in Hong Kong under the brand name of Giordano. He subsequently developed the Giordano brand into a multinational company that became one of Asia’s most successful casual wear retailers. During the 1990s, Mr. Lai built a media empire by first starting Next Magazine and then challenging the crowded and conservative Chinese language newspaper market in Hong Kong with the launch of the Apply Daily tabloid. As the anchor tenant in an envisioned cybermall, adMart would be the latest venture to leverage Mr. Lai’s expertise in business development. Jimmy Lai versus the Establishment Mr. Lai was well known for being flamboyant, outspoken, and irreverent. Before and after the Tiananmen Square massacre, he had criticised Communism and taunted the Beijing government. Slogans on the t-shirts sold by his Giordano stores and editorials in his media outlets promoted democracy and ridiculed Chinese Communist Party officials. One particularly acute comment by Mr. Lai about then Premier Li Peng had stymied Giordano’s expansion plans in mainland China and eventually led Mr. Lai to sell his equity stake in the clothing retailer. More recently, his Apple Daily newspaper was blacklisted by Chinese President Jiang Zemin. This was after it had taken on the Chinese language newspaper cartel in Hong Kong and emerged as the second best-selling daily publication in the territory. With adMart, Mr.
© Maris G. Martinsons 2001, last updated in 2005
This case is based primarily on interviews with key players conducted by the author in 2000 and 2001. Data from the interviews are supplemented by information extracted from media reports.
Hong Kong-based businessman Jimmy Lai Chee-ying launched adMart in June 1999 to sell groceries over the Internet. This start-up was the cornerstone of an effort by Mr. Lai to once again demonstrate his entrepreneurial acumen by successfully diversifying into e-commerce. Back in 1981, Jimmy Lai set up a garment factory and started to sell casual clothing in Hong Kong under the brand name of Giordano. He subsequently developed the Giordano brand into a multinational company that became one of Asia’s most successful casual wear retailers. During the 1990s, Mr. Lai built a media empire by first starting Next Magazine and then challenging the crowded and conservative Chinese language newspaper market in Hong Kong with the launch of the Apply Daily tabloid. As the anchor tenant in an envisioned cybermall, adMart would be the latest venture to leverage Mr. Lai’s expertise in business development. Jimmy Lai versus the Establishment Mr. Lai was well known for being flamboyant, outspoken, and irreverent. Before and after the Tiananmen Square massacre, he had criticised Communism and taunted the Beijing government. Slogans on the t-shirts sold by his Giordano stores and editorials in his media outlets promoted democracy and ridiculed Chinese Communist Party officials. One particularly acute comment by Mr. Lai about then Premier Li Peng had stymied Giordano’s expansion plans in mainland China and eventually led Mr. Lai to sell his equity stake in the clothing retailer. More recently, his Apple Daily newspaper was blacklisted by Chinese President Jiang Zemin. This was after it had taken on the Chinese language newspaper cartel in Hong Kong and emerged as the second best-selling daily publication in the territory. With adMart, Mr.