Groupon bridges gap between online and offline with Hong Kong concept store

The Hong Kong Concept Store is the world's second, after Singapore opened one in July.

The 4,000 sq ft Hong Kong store is located in Soundwill Plaza, opposite Times Square in the heart of the busy Causeway Bay area.

Danny Yeung, chief executive and founder of Groupon Hong Kong told Campaign Asia-Pacific that the aim of the new concept store is to build a bridge between its online and offline channels.

Yeung said there are currently two million Groupon subscribers in Hong Kong, with the majority being female bargain hunters.

He said there is more demand in Hong Kong to redeem products, as 70 per cent of Groupon customers prefer to pick up their deals themselves, rather than by post—unlike in geographically bigger markets like the US.

The store will offer customers a place to redeem lifestyle products and test the products in a physical environment. It also provides customers with iPads to browse, purchase, print and redeem their Groupon vouchers on the spot. It showcases selected products which will be made available for immediate purchase via the Groupon website.

The company says the store mirrors every aspect of the Groupon website’s rich content, giving a physical expression of the brand and the many branded products it offers, including Samsung mobile phones, Bugatti bags, Armani glasses, American Apparel clothing and LG TVs.

Yeung added that it will offer customers a platform to redeem lifestyle products and test the products in a physical environment. "Our business model is based on a cheap good deal," he said. "We are an online model with limited time offering, but people still want to see the products."

However he stressed that Groupon is not turning into a retail business model, but is providing an enhanced customer experience.

Groupon previously used two outsourced redemption centres in Hong Kong, but they will be closed.

Fleishman-Hillard, the PR agency for Groupon Hong Kong, organised a flash mob dance called 'Groupon style' in Tsim Sha Tsui and Mong Kok last week. It was supported by an extensive print and Facebook campaign and a media event today to promote the announcement of the store.

To welcome early-bird buyers, the first 10 customers to answer mystery questions correctly at the store won an iPhone 5, while the first 1,000 redeeming products at the store received 50 Groupon credits.