Japanese Retail Giant Shares Tips to International Success

Hong Kong hosts one of the stores that have recorded the best sales figures among all Don Quijote locations around the world.

Pan Pacific Retail Management (Hong Kong) Co., Ltd., the subsidiary of Japanese discount retail chain Don Quijote’s operating company Pan Pacific International Holdings Corporation, opened the first Hong Kong DON DON DONKI store in 2019. Having achieved tremendous success, the chain unveiled its much-bigger second store in the same year, spanning across over 27,000 square feet in Tsuen Wan. The second store houses over 15,000 types of products, from fresh and packaged food, to home products, cosmetics, toys and pet products, plus a dine-in food court with palate-pleasing menus.

Mitsuyoshi Takeuchi, President and Director of Pan Pacific Retail Management (Hong Kong) Co., Ltd., said that the Hong Kong stores are among the best performing outlets in the Don Quijote network worldwide, showing strong consumption power of the Hong Kong domestic retail market.

“We have received very positive responses and great support from Hong Kong consumers. Our first store in Tsim Sha Tsui is popular among office workers, whereas in our second store in Tsuen Wan are frequented by families living in the neighbourhood,” said Takeuchi, adding that Japanese Wagyu beef, tuna, salmon and cosmetics are especially popular among Hong Kong consumers.

An excellent base for overseas expansion

There are more reasons to DON DON DONKI’s rapid expansion in the city besides the market demand. “Hong Kong is the largest importer of Japanese food in the world; its zero tariff and free port status also makes it a great location as a distribution hub. “Hong Kong consumers are knowledgeable and informed about Japanese products. In other words, Hong Kong is a beacon for Japanese manufacturers. We regard the city to be a considerable facilitator of new investments or ventures from Japan.”

DON DON DONKI employs a large number of staff members in Hong Kong and most of them are local hires. Takeuchi said that its local employees are key pillars in its operation and strategy planning. “Localisation is our key to success. Whilst there are Japanese staff based here, it is our management style to give full authority to our local employees, allowing them to make important decisions and take the lead in developing our store concept and store management. That is what we call the art of delegating authority – giving authority to the frontline staff. We believe this is the secret of our success.”

He also mentioned that he appreciates the Hong Kong staff’s strong work ethics and proactivity in using their own initiative to produce brilliant outcome on a variety of matters. This is one of the strong advantages when opening stores or launching new types of businesses in Hong Kong.

Takeuchi also appreciates the support from InvestHK. “When we opened new stores in Hong Kong, we received dedicated assistance from InvestHK thanks to their extensive experience and knowledge. I still remember InvestHK’s assistance in visa application, as well as the abundance of support, care and useful tips provided, for which we are sincerely grateful.”