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Cheryl Arcibal

PapaHome, a partnership between Chinese e-commerce platform Taobao and local home repair platform Papabo, will open a 40,000 sq ft furniture and lifestyle store in Causeway Bay in the second quarter of next year.
The outlet in Fashion Walk would be the Hong Kong-based company’s second in the city, after it opened its first bricks-and-mortar shop in Tsim Sha Tsui in February, according to a statement from the joint venture on Friday. Taobao, which does not own a stake in PapaHome, is operated by Alibaba Group Holding, the owner of the South China Morning Post.
The expansion of the one-stop home decor platform’s stores in the city underscores the evolution of the online-to-offline retail strategy, which is helping absorb some of the vacant retail space in Hong Kong.
“Our average ticket size has tripled since the opening of our physical store,” said Andy Wong, CEO of PapaHome. “We’ve observed people confidently placing consistent six-figure orders through Taobao’s platform after visiting PapaHome, which proves Hong Kong is ready for the next era of e-commerce.”


The hybrid model was the cornerstone of the group’s growth strategy, he said.
“This success stems from a core insight: while over 40 to 50 per cent of retail in China is online, in Hong Kong it’s only about 16 to 18 per cent,” Wong said. “This highlights the critical importance of the physical experience in Hong Kong.”
He added that the company was doubling down on expanding in new locations and more categories that require “touch-and-feel”.
The city’s retail industry had received a boost from resilient tourist footfall, according to JLL.
The overall high street vacancy rate across the city’s four core retail districts fell to 8.3 per cent in the third quarter from 9.7 per cent in the preceding one, the consultancy said. Vacancy rates in Causeway Bay and Mong Kok dropped to 7.9 per cent and 5.3 per cent, respectively, as attractive rents had attracted retailers from diverse segments.
Rents declined 1.4 per cent quarter on quarter for high street shops, while they fell 3.3 per cent and 3.8 per cent for prime shopping centres and premium prime shopping centres, respectively, according to JLL.
High street shop rents were now 52.6 per cent below the all-time high reached in the second quarter of 2019, which had encouraged occupiers to relocate to prime locations for greater brand exposure, JLL added.
Apart from the store expansion, PapaHome also said that Jackson Wang, a Hong Kong-based artist, had become a strategic investor in the venture. Wang made the investment through Team Holding, a company he co-founded to oversee and expand global ventures.
The investment is Wang’s first in Hong Kong.
Born and raised in Hong Kong, Wang is a global icon. His latest solo album, Magicman 2, debuted at number 13 on the Billboard 200, making it the highest-charting debut album by a Chinese artist in history.
“I am excited to be a new strategic investor in PapaHome,” Wang said.
“As a proud Hongkonger, I’ve witnessed first-hand this international city’s unique ability to serve as a true global connector, bringing together people, ideas and opportunities.
“Few places rival Hong Kong’s strength as a trading hub and launch pad for fresh ventures, making it an unparalleled market for businesses with global ambition.”


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The 40,000 sq ft furniture and lifestyle store will open at Fashion Walk in Causeway Bay in the second quarter of next year


The 40,000 sq ft furniture and lifestyle store will open at Fashion Walk in Causeway Bay in the second quarter of next year.


PapaHome to open second Hong Kong store as online-to-offline strategy pays off

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The 40,000 sq ft furniture and lifestyle store will open at Fashion Walk in Causeway Bay in the second quarter of next year

The 40,000 sq ft furniture and lifestyle store will open at Fashion Walk in Causeway Bay in the second quarter of next year