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AGAINST ALL ODDS: THE MARKETING PS OF 759 STORES

Reference No. 15/008C Publication Year 2015
Author(s) Ailie Tang; W H Lo
Company 759 Stores
Industry Consumer Goods / Retail & Wholesale
Geographic setting Hong Kong
Functional Area Marketing

Synopsis

 

759 Stores (“759”) were born in 2010 when Lam Wai Chun’s (“Lam”) manufacturing business was in trouble and he wanted to warn his staff about possible redundancy. He also wanted to enrich their credentials by offering them exposure in retail business. He accepted his staff’s idea of opening a small tuck shop in a local shopping mall in August 2010. A few more shops quickly followed. He later named these shops 759阿信屋. In five years, 759 grew from a small shop to a chain of 249 outlets selling over 30,000 products. Its revenue had grown from nothing to over HK$2.1 billion. Obviously, Lam had found a successful formula to overcome all the odds challenging 759’s survival, such as local-supplier boycotts, high rental and operating costs, and a Hong Kong taboo on independent pricing. Important aspects of Lam’s solution were reflected in 759’s marketing mix. 

This abridged business case was specially prepared for business practitioners. It discussed 759’s marketing Ps.

This case was fully supported by a grant from the Research Grants Council of the Hong Kong Special Administrative Region, China (UGC/IDS12/14).