SaSa

Topics: Marketing, Cosmetics, Brand, Retailing / Pages: 12 (2841 words) / Published: Oct 6th, 2013
SASA Cosmetics
Case Study

BY GROUP 4
Meenakshi chauhan 79
Meera sethi 80
Megha saraogi 81
Milin Mathew 82
Umair khan 83
Mohit patel 84
SaSa Cosmetics
Situation Analysis:
SaSa which is one of the leading forces in cosmetics retail and beauty services aims at “quality products at a fair price.” Low prices, wide product selections and convenient retail locations helped SaSa to capture the market and expand its business in branded cosmetics and toiletries in Hong Kong. It also led to high brand recognition throughout Asia.

Hong Kong's robust economy, absence of trade barriers, transparent regulations, well-established rule of law and freedom of capital movement were the reasons for it being an attractive place for retail businesses, especially for cosmetics and toiletries. It being a free port, there were no import tariffs levied on beauty products. Tourism also provided a substantial market for these products. Hong Kong with its affluent population of 7.2 million people and a per capita income of over $25,000 was a profitable market for imported cosmetics and perfume. The people also thought that imported goods were of a high quality and it was Prestigious than the domestic goods.

SaSa was started by husband and wife, Simon and Eleanor Kwok, on April 1, 1978, and it was headquartered in Hong Kong. They aimed at providing a wide selection of beauty products at competitive prices in a one-stop-shop concept. When they started their business they were not in a position even to reach breakeven. It was then they decided to introduce a technique that brought about a 20% markdown on our merchandise for a period of two weeks. This increased their sales and their profit was about $800 by the end of the month. SaSa thus pioneered the discount store concept in the cosmetics industry in Hong Kong.

More than half of SaSa’s merchandise was parallel imports, which on average produced a gross margin of 15% to 20%. The balance of its stock was

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