PAPRIKA Holdings Limited – APEA – Asia Pacific Entrepreneurship Awards

OUTSTANDING CATEGORY

SAMUEL LEUNG SHI WAI
CEO


PAPRIKA Holdings Limited
Room 2506 - 2507, Laws Commercial Plaza,
786 - 788 Cheung Sha Wan Road, Cheung Sha Wan
+852 2730 6621
www.paprika-edition.com


Leung Shi Wai, Samuel, also known as Sam, created his own branded handbags “PAPRIKA” in 2008. PAPRIKA started from 3 retail shops in 2009 to currently 16 retail points including 14 retail stores and 2 concessionaire counters, providing affordable high quality fashion handbags and accessories. Together with the sales contributed from various other channels, PAPRIKA ranked the 8th of the top brands in the mass market segment of the handbag retail market of Hong Kong in 2016.

Sam has over 17 years of experience in the fashionable apparel industry, from a merchandiser of handbags, to the creation of his own brand PAPRIKA. Sam identified a business model that enables him to focus on his core strength in marketing, brand development and retail network management. “We believe that our Fast Retail Model puts us in a position to promptly respond to market changes, enhance sales volume and minimize excess inventories”, said Sam. “We launch new products on a regular basis and typically, every month”. Sam believes this frequent flow of new products stimulates the buying wishes of customers, encourages them to visit his retail points more frequently, provides them with a fresh shopping experience and entices them to purchase PAPRIKA’s products during each visit.

The three key characteristics of Sam’s Fast Retail Model on PAPRIKA consisting frequent launch of new products, competitive pricing and high inventory turnover. Among these characteristics, product planning begins the quick moving Fast Retail cycle. “We will collect market information on different styles of products, and review sales data, customers’ feedback and historical purchasing behavior. We analyse all the information in detail to understand consumer preferences and market trends.” The planning process for a new product from the beginning to immediately prior to production outsourcing typically takes approximately 30 to 40 days.

The marketing planning will commence once the OEM suppliers provided the product samples. Sam and his marketing team changed their principal advertising platform from print media such as magazines and newspapers to social media platforms. “Social medial platforms can provide an interactive way for us to communicate with our customers as we are able to obtain feedback on our products and services which we find useful for formulating and adjusting our marketing strategies”. To fully utilize the power of the social media platforms, PAPRIKA engaged celebrities to its artiste events, and invited KOLs to participate in the promotional activities. With the celebrities and KOLs carrying PAPRIKA’s signature products for photos and sharing on entertainment news platforms, instagram and facebook, PAPRIKA’s products can reach out to the fans of the celebrities, and more than 100,000 followers of these KOLs.

Sam’s Fast Retail Model also includes competitive pricing and accordingly high inventory turnover. By placing larger quantity orders, the OEM suppliers were more willing to reduce the price charged. Such decrease in production costs provided room for Sam to lower the selling prices of PAPRIKA’s products. “We believe that our sales team which the customers find to be dedicated, our competitive pricing and the variety of our promotion strategies, are contributing factors to our high sales volume of our products”. Sam and his team also design promotional sales packages to uplift the purchasing incentives to customers. Combo sets, lucky grab bags and also warehouse sales which combine the popular items and off-season products not only provide bargaining prices to customer on bulk purchases, these packages are also a channel to increase the turnover of the off season products.

Retail sales in Hong Kong are predominantly driven by physical retail stores. The selection of retail stores location also played an important part of Sam’s business model. A majority of PAPRIKA’s retail stores are located in shopping areas with a wide coverage of target customers, which Sam and his teams believe enhances exposure of PAPRIKA’s products and enable the team to closely monitor the customers’ behavior and improve the teams’ ability to response swiftly to changing customer preferences and spending patterns.

Sam intends to enhance the overall competitiveness and increase the market share, specifically, expand the retail network in Hong Kong and implement an O2O strategy to target growth opportunities in the PRC. “We believe that there will be a sufficient demand for our mass market handbag products in the PRC in the next five years and the implementation of our O2O strategy may be facilitated given that both online and offline retail channels of handbag market is expected to grow in parallel during 2017 to 2021 in terms of retail sales value”. Sam also considers that communication technologies, such as QR codes, if made available in the retail store in the PRC, may potentially drive online purchases as customers can link up with the online retail point after scanning the QR code with their smartphones in the retail stores.

Sam alone could not do all these. With the support of his young and energetic management and marketing teams, Sam is able to execute his Fast Retail Model efficiently, and the result not only reflected in the significant growth of PAPRIKA’s sales, the public awareness and the awards gained also reflect its successfulness.

With Sam’s proven experience in the fashionable handbags industry, together with the competitive pricing strategies, PAPRIKA’s sales recorded significant growth over the last few years, notwithstanding that the Hong Kong retail market was facing a significant downturn especially during 2015 and 2016. “We believe that adopting to customers’ preferences in a prompt manner is crucial for our business model”. PAPRIKA’s products can response to customers’ changing preferences and tastes, hence allowing it to move with the fashion trend. The Fast Retail model differentiates PAPRIKA from other market players who adopt the traditional business model.

OUTSTANDING CATEGORY

SAMUEL LEUNG SHI WAI
CEO

Leung Shi Wai, Samuel, also known as Sam, created his own branded handbags “PAPRIKA” in 2008. PAPRIKA started from 3 retail shops in 2009 to currently 16 retail points including 14 retail stores and 2 concessionaire counters, providing affordable high quality fashion handbags and accessories. Together with the sales contributed from various other channels, PAPRIKA ranked the 8th of the top brands in the mass market segment of the handbag retail market of Hong Kong in 2016.

Sam has over 17 years of experience in the fashionable apparel industry, from a merchandiser of handbags, to the creation of his own brand PAPRIKA. Sam identified a business model that enables him to focus on his core strength in marketing, brand development and retail network management. “We believe that our Fast Retail Model puts us in a position to promptly respond to market changes, enhance sales volume and minimize excess inventories”, said Sam. “We launch new products on a regular basis and typically, every month”. Sam believes this frequent flow of new products stimulates the buying wishes of customers, encourages them to visit his retail points more frequently, provides them with a fresh shopping experience and entices them to purchase PAPRIKA’s products during each visit.

The three key characteristics of Sam’s Fast Retail Model on PAPRIKA consisting frequent launch of new products, competitive pricing and high inventory turnover. Among these characteristics, product planning begins the quick moving Fast Retail cycle. “We will collect market information on different styles of products, and review sales data, customers’ feedback and historical purchasing behavior. We analyse all the information in detail to understand consumer preferences and market trends.” The planning process for a new product from the beginning to immediately prior to production outsourcing typically takes approximately 30 to 40 days.

The marketing planning will commence once the OEM suppliers provided the product samples. Sam and his marketing team changed their principal advertising platform from print media such as magazines and newspapers to social media platforms. “Social medial platforms can provide an interactive way for us to communicate with our customers as we are able to obtain feedback on our products and services which we find useful for formulating and adjusting our marketing strategies”. To fully utilize the power of the social media platforms, PAPRIKA engaged celebrities to its artiste events, and invited KOLs to participate in the promotional activities. With the celebrities and KOLs carrying PAPRIKA’s signature products for photos and sharing on entertainment news platforms, instagram and facebook, PAPRIKA’s products can reach out to the fans of the celebrities, and more than 100,000 followers of these KOLs.


PAPRIKA Holdings Limited
Room 2506 - 2507, Laws Commercial Plaza,
786 - 788 Cheung Sha Wan Road, Cheung Sha Wan
+852 2730 6621
www.paprika-edition.com


Sam’s Fast Retail Model also includes competitive pricing and accordingly high inventory turnover. By placing larger quantity orders, the OEM suppliers were more willing to reduce the price charged. Such decrease in production costs provided room for Sam to lower the selling prices of PAPRIKA’s products. “We believe that our sales team which the customers find to be dedicated, our competitive pricing and the variety of our promotion strategies, are contributing factors to our high sales volume of our products”. Sam and his team also design promotional sales packages to uplift the purchasing incentives to customers. Combo sets, lucky grab bags and also warehouse sales which combine the popular items and off-season products not only provide bargaining prices to customer on bulk purchases, these packages are also a channel to increase the turnover of the off season products.

Retail sales in Hong Kong are predominantly driven by physical retail stores. The selection of retail stores location also played an important part of Sam’s business model. A majority of PAPRIKA’s retail stores are located in shopping areas with a wide coverage of target customers, which Sam and his teams believe enhances exposure of PAPRIKA’s products and enable the team to closely monitor the customers’ behavior and improve the teams’ ability to response swiftly to changing customer preferences and spending patterns.

Sam intends to enhance the overall competitiveness and increase the market share, specifically, expand the retail network in Hong Kong and implement an O2O strategy to target growth opportunities in the PRC. “We believe that there will be a sufficient demand for our mass market handbag products in the PRC in the next five years and the implementation of our O2O strategy may be facilitated given that both online and offline retail channels of handbag market is expected to grow in parallel during 2017 to 2021 in terms of retail sales value”. Sam also considers that communication technologies, such as QR codes, if made available in the retail store in the PRC, may potentially drive online purchases as customers can link up with the online retail point after scanning the QR code with their smartphones in the retail stores.

Sam alone could not do all these. With the support of his young and energetic management and marketing teams, Sam is able to execute his Fast Retail Model efficiently, and the result not only reflected in the significant growth of PAPRIKA’s sales, the public awareness and the awards gained also reflect its successfulness.

With Sam’s proven experience in the fashionable handbags industry, together with the competitive pricing strategies, PAPRIKA’s sales recorded significant growth over the last few years, notwithstanding that the Hong Kong retail market was facing a significant downturn especially during 2015 and 2016. “We believe that adopting to customers’ preferences in a prompt manner is crucial for our business model”. PAPRIKA’s products can response to customers’ changing preferences and tastes, hence allowing it to move with the fashion trend. The Fast Retail model differentiates PAPRIKA from other market players who adopt the traditional business model.