Japan's Don Quijote recently opened its first store in Hong Kong, which is the company's sixth overseas store following those in Hawaii, Bangkok, and Singapore.
It is said that Greater China is the second overseas market entered by Don Quijote in 2019.
Like Japanese stores, the new Don Quijote Hong Kong store also operates around the clock. It provides fresh food, snacks, cosmetics, daily commodities, and Japanese indigenous products. Its target customers are tourists from mainland China.
According to reports in Hong Kong local media, the new store has an area of about 1,400 square meters and its monthly rent is about HKD1 million.
Public files show that Don Quijote is a well-known comprehensive discount store in Japan and it has over 400 stores in its Japanese domestic market. Its main business model is to sell discount products to ensure high gross profit and the sales of discount products account for 30% to 40% of its turnover.
Statistics show that from 1989, when Don Quijote opened its first store, to 2017, the company's sales increased from JPY1.2 billion to JPY828.8, reaching an annual compound growth rate of 25.2%. In 2017, its annual total customer flow reached 333 million.