Cheap Lab: Difference between revisions

Revision as of 21:33, 27 December 2024

Latest revision as of 17:57, 28 December 2024

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==Operations==

Sit Wai-kit of ''[[Ming Pao]]'' attributed the rapid expansion of Cheap Lab to various strategies, including its Chinese name 執笠倉 which gives the impression of a constant [[Closeout (sale)|clearance sale]], and its strategy of importing products and leasing shops. Sit also noted that the company allowed retail staff to manage and interact with customers on the company's [[Facebook]] fan page based on their own creativity, including by taking videos of themselves promoting new products, with few restrictions.<ref name="MP"/> This stands in contrast with similar stationery retailers in Hong Kong which rarely use social media and instead focus on low pricing and quick [[inventory turnover]].<ref name="MP"/> Sit pointed to several examples, including a Cheap Lab employee showcasing a low-cost [[fidget spinner]] by demonstrating in a video several ways with which it can be played; and another employee using a pair of [[3M]] titanium scissors, instead of a knife, to cut a roast [[suckling pig]].<ref name="MP"/>

As of 2019, customers spend an average of HK$20 per purchase at Cheap Lab. The company trialed the sale of higher-priced products in 2019, though So noted that customers were generally unwilling to purchase products priced above HK$50. Rent constitutes 20-30% of the company's costs, higher than most retailers.<ref>{{cite web |author1=梁子謙 |title=「執笠平貨」吸客人均消費約20元 執笠倉：做貼地雜貨店 |url=https://ps.hket.com/article/2306039 |website=Hong Kong Economic Times |accessdate=19 December 2019 |language=zh-HK |date=3 April 2019}}</ref> To reduce costs, the company usually selects shops with both a ground floor and an upper or basement floor, with a combined area larger than 1500 square feet to accommodate multiple types of products. The company said it had difficulty expanding into shopping malls despite its size because most mall operators were unwilling to accept branding the store "執笠", which literally means "going out of business".<ref>{{cite web |title=為進駐商場 另起新店名「幸丸」 |url=https://www.mpfinance.com/fin/daily2.php?node=1553797166247&issue=20190329 |website=Ming Pao |accessdate=19 December 2019 |language=zh-HK |date=29 March 2019}}</ref>