Moving forward, the group said it would prioritise its digital presence by investing in social media promotions and influencer collaborations to boost brand awareness and credibility.
The goal is to integrate online and offline channels to deliver a seamless online-merge-offline (OMO) shopping experience.
As part of its objectives, the retailer launched an upgraded membership mobile application in September 2024 for China, Hong Kong, and Macau.
The app integrates the membership bases from online and offline channels in all three markets.
With the app upgrade, its hopes to enhance customer loyalty and repurchase rates.
“By gaining a deeper understanding of consumer preferences and shopping behaviour, the Group can provide personalised recommendations and targeted marketing campaigns, ultimately enhancing customer loyalty, increasing repurchase rates, and maximising returns on marketing investment.”
Online sales across regions
In South East Asia, where Sa Sa operates in Malaysia and Singapore, online sales grew marginally by 1.7% to HK$38.6m (USD4.96m) in 2024.
However, the retailer recorded “soaring” online sales in China, which helped to drive growth in the market.
Online sales in China increased by 61.2% to HK$257.5m (USD33.1m), representing 65% of the group’s total online sales.
According to the firm, its e-commerce remains the predominant sales channel in China as it has a reputation for delivering “quality and genuine products”, which helped it to grow in an already crowded market.
On the other hand, offline sales decreased 36.7% as it operated 12 fewer stores compared to the previous year.
The company is pleased with how it has progress online in China, highlighting that the market remains a core focus for the firm despite the sluggish economic conditions.
“Online sales in Mainland China have now normalised and future growth will very much depend on economic condition.”
In Hong Kong and Macau, where the market conditions remained challenging in 2024, Sa Sa’s leveraged livestreaming to attract younger consumers with the help of its beauty advisors as well as influencers.
According to the firm, livestreaming accounted for 21.5% of online sales in the region.
“By bringing the group’s signature beauty consultant online in collaboration with KOLs via live commerce, the group has garnered interest in exclusive brands in the online marketplace.”
Reining in sales
At the same time, the retailer is determined not to engage in any price competitions.
“With the trend of consumers seeking value-for-money, there is pressure on the depth of promotions,” it said.
To counter this, the retailer focused on developing its portfolio of exclusive brands.
It said that bringing in popular new brands from different countries as exclusive helped to cultivate customer loyalty and position Sa Sa as the “go to” beauty retailer.
In addition to its core categories of skin care, makeup, and fragrance, Sa Sa is working to expand into new categories such as beauty supplements and devices.
It currently offers 102 and 28 brands in these categories respectively.
Despite the uncertainty, chairman and chief executive Dr Simon Kwok said he remained positive about its long-term outlook.
“Favourable government measures to stimulate tourism and consumer spending, combined with a progressive economic condition across Hong Kong, Macau and Mainland China, create a positive trajectory.
“Sa Sa’s commitment to authentic, high-quality products, continuous expansion of product categories, and development of online services, further strengthened by our robust product sourcing, position us for continued success in a competitive market.”