California Corner at Yue Hwa HKG – Test Market Program
California STEP, in cooperation with the U.S. Commercial Service and the Yue Hwa Chinese Products Emporium Ltd. department store in Hong Kong is providing an opportunity for U.S. companies to submit their products for evaluation and potential inclusion in an “in-store” retail promotion in Hong Kong in May 2017. “California Corner” is both a retail promotion and a test-market program for introducing California brands into the Hong Kong and South China marketplace.
About Yue Hwa:
Established in 1959, Yue Hwa is a household name in Hong Kong and among overseas Chinese in SE Asia for Chinese products. It now sells imported skincare, personal care and cosmetics from Europe, Japan and also dietary supplements, organic and “green” products, senior care products, sports wear and some household items. Yue Hwa is keen to expand the number of cosmetic, personal and skincare brands, dietary supplements and senior care products in their stores that are made in the U.S.
Yue Hwa has 15 retail locations in Hong Kong, and 4 branches in Singapore. The California Corner promotion will be held at Yue Hwa’s flagship 7 story retail store on Nathan Rd., Kowloon at the Jordan MTR exit.
About the Promotion:
The California Corner promotion is a “test market” program intended to introduce products on a trial basis. As with any test marketing program, there are costs. The California Corner program is a “shared cost” test marketing program; California STEP is providing public relations, marketing, transportation and logistics support; the U.S. Commercial Service is providing marketing, logistics and organizational support, and Yue Hwa is providing merchandising and sales support. The total costs of the program will be more than 3 times the invoice value of the products. The unique benefit of this program is the “test market” is done in a real retail situation, with an excellent chance for longer term contracts with those products that have good sell-through.
Target Market
- Baby Boomers-Gen X/professionals, health-conscious (35-65 yrs)
The product categories include:
- Health and Beauty Products (Simple application, skin care, hair care, etc)
- Vitamins and food supplements
- Organic food (ready to eat, non-refrigerated)
“California Corner” is an integrated Point-of-Purchase and promotional campaign that will include:
- Premium Shelf Placement in a custom designed “California Corner” retail display in a high density shopping district for up to 30 days.
- A public relations launch for “California Corner”
- A digital marketing platform to leverage and create awareness about your brand
- The promotion is schedule for May 2017
Terms of Sale
- Supply: Your company will supply $2,500 worth of products at wholesale price to Yue Hwa, FOB Los Angeles (delivery instructions will be provided). California STEP will pay for the transportation, duties and other fees to deliver the products to Yue Hwa in Hong Kong.
- Payment: Yue Hwa will remit payment directly to your company in the amount of $1,000 in exchange for the products (a 60% discount from the wholesale price list*), within 14 days of receipt of merchandise in Hong Kong. Yue Hwa will merchandise the products for 30 days.
- Unsold Products: After the end of the promotional period, Yue Hwa will continue to sell the products or destroy the products, at their discretion; there will be no returns of unsold merchandise.
- All Future Orders/ Follow-on Business: *The discount from wholesale price list applies to this specific promotion only. Any future business with Yue Hwa will be based upon direct negotiations bewteen Yue Hwa and your company.
- California STEP and the U.S. Commercial Service will provide a photo of the display, and feedback on the product sales achieved for your product and comments on the marketability.
- Products that are viable will be considered for future purchases.
How to submit your products for consideration?
- Go to https://citd.org/cal-yue-hwa/ and complete the registration form – additional questions will populate the form. In addition to company and product details, you will need upload product literature (including photos); and provide pricing.
How do I Know when my products have been selected (3-stage process)?
- Stage 1: Buyers from Yue Hwa will evaluate your product and company information based upon your registration submission.
- Stage 2: If your products are being considered for inclusion, Yue Hwa will request one or two samples of each item to be sent for final evaluation – instructions will be provided.
- Stage 3: after evaluation of samples, Yue Hwa will make selection and you will be notified immediately.
What Happens Next?
- Once your products have been selected, you will be provided with instructions on how to arrange shipment and latest shipment dates, promotional details and any specific localization requirements.
Timeline
- December – March 30, 2017 – submission of registrations for consideration
- February – April 2017 – product selections made
- Late April 2017 – products shipped to Port of Los Angeles
- Late May 2017 – California promotion launched at Yue Hwa
- July-Aug 2017 – feedback to participating companies
Funded in part through a Cooperative Agreement with the U.S. Small Business Administration.