Hong Kong cosmetics market 'yet to reach its peak'

According to CEO Simon Kwok Siu-ming, there has been a shift in the age of consumers buying cosmetics with senior citizens beginning to rise to the top in terms of expenditure.

"I also now see many teenagers buying nail polish on their own,​" he says, adding that; "Many people worry about the topping out of Hong Kong cosmetic sales but I believe the market has yet to reach its peak."​

The specialty cosmetics chain has a vast presence in Hong Kong, Macau, Mainland China, Taiwan, Singapore and Malaysia offering its own range of skin care, fragrance, hair care and BFW supplements as well acting as a representative for over 100 international cosmetics brands.

In an effort to take advantage of this shift in buying trends, the brand has planned to open up to ten new outlets over the next three to five years.

Taking advantage of the lucrative markets ​

Despite reports that Chinese tourist numbers are dwindling, cosmetic companies like this Hong Kong-based retailer are still posting strong numbers.

Last month Sa Sa announced its' net profit to have risen to HK$357.4 million ($46.09 million) in the last six months, up from HK$282.1 million from the same financial quarter last year.

According to reps, growth in the number of same-day-return tourists fell from 37.2 to 21.0% in the first nine months of 2013, declining numbers that were reflected in the company's Golden Week holiday sales last month, which rose a less-than-expected 11%.

In the company's latest earnings statement, CEO Simon Kwok revealed that sales to mainland visitors continued to insulate the $3 billion company, but added that it remains ‘cautiously optimistic’ for the coming year as it continues with its expansion in the Asia-Pacific region.

“Looking ahead, we will ride on our brand strength with high management flexibility, and prudent development strategy to drive expansion in Hong Kong, Mainland China and other markets,”​ says the chairman.

Analysts keeping a close eye on the company's efforts..​

According to Forbes, the company’s Hong Kong-traded shares have risen by more than 60% in the past twelve months, and that although its’ recent announcement didn’t include any details about profit, Sa Sa is now in a position to be “cautiously optimistic​” about this quarter.

The business magazine has been keeping a close eye on the Asian company of late, ranking its founders Simon and Elenor Kwok as No. 33 on its’ 2013 'Hong Kong Rich List'.