1. From Paris To Hong Kong1 GEU0411 Senior Seminar Presentation From Paris To Hong Kong Agnes Fok Janet Chung Kelly Yip Group 148 Y.Y. Wong

2. From Paris To Hong Kong 2 Content I.Introduction of our topic II.Introduction of Paris Café III.Online survey on “Youngsters’ Favorite Gathering Places” IV.SWOT analysis of Paris Café V.Conclusion VI.Discussion

3. From Paris To Hong Kong3 I. Our Topic

4. From Paris To Hong Kong 4 Introduction Coffee culture What do coffee shops sell? Collective conscience: From Paris Café we look into the trend of coffee in HK

5. From Paris To Hong Kong 5 Video of HK Coffee Shops

6. From Paris To Hong Kong6 Timeline of HK Coffee Shops Activity 1

7. From Paris To Hong Kong7 II. Paris Café

8. From Paris To Hong Kong 8 Introduction A new local coffee shop, since 1999 Actually started up by the owner who run a local tea-restaurant before. One of the leaders in operating a coffee shop upstairs. Operation with a unique concept of a leisurely coffee drinking experience.

9. From Paris To Hong Kong 9 Introduction One of its special characteristics is the relaxing home feeling like shop decoration, friendly services and home-made products The first local chain of coffee shop with a franchised system Separated into Paris Café and Paris Zone8 Paris Café: mostly on ground level Paris Zone8: all upstairs

10. From Paris To Hong Kong 10 Locations Paris Zone8 Jordan Prince Edward Mongkok Tsim Sha Tsui Causeway Bay Paris Café Mongkok Hung Hom Tsim Sha Tsui Kwai Fong To Kwa Wan Sheung Wan Causeway Bay Central Lan Kwai Fong Wan Chai Fortress Hill

11. From Paris To Hong Kong 11 Video of Paris Café

12. From Paris To Hong Kong12 III. Online Survey

13. From Paris To Hong Kong 13 Survey We did an online survey on “Youngsters’ Favorite Gathering Places” 128 respondents average age: 21.8 about two-third are females

14. From Paris To Hong Kong 14 Features of Youngsters Income or patty cash: mostly less than $2000 Usually spend $81-100 each time Usually spend 4-8 hours with friends per week Often spend 3-4 hours with friends in each gathering They prefer coffee shops (apart from restaurants, which is the most favorite gathering place)

15. From Paris To Hong Kong15 IV. SWOT Analysis

16. From Paris To Hong Kong 16 SWOT Analysis Analyze Paris Café by its… Strengths Weaknesses Opportunities Threats

17. From Paris To Hong Kong 17 A. Strength - Franchise

18. From Paris To Hong Kong 18 Good Suppliers Get supplies from well-known suppliers Guaranteed / higher quality of coffee materials Both coffee essentials and the equipments

19. From Paris To Hong Kong 19 Good Suppliers Paris - Tsit Wing: The largest tea and coffee producer in HK Other smaller cafes eg: Small Potato - Coffee beans: grocery - Machine: ???? (let’s make a guess)

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24. From Paris To Hong Kong 24 Bargaining Power Higher bargaining power towards suppliers - Paris Café as a whole becomes a large buyer - Can ask for bulk discounts - Cheaper cost of coffee beans and groceries - Lower operating costs

25. From Paris To Hong Kong 25 Phone Interview Phone interview with Tsit Wing Staff -Chain Stores: $$$ -Independent Small cafes: More expensive or even don’t eager to sell to them

26. From Paris To Hong Kong 26 Lower Cost  Better Quality Lower average costs (Price) - Cost-leadership Allows more varieties (Quality) - Longer Menu - Attractive offers: $ 20 tea sets

27. From Paris To Hong Kong 27 Price-Quality Positioning Competitive prices with high quality of products and services

28. From Paris To Hong Kong 28 Differentiation Low entry barrier  numerous entrants  hypercompeitions Instant name recognition differentiates Paris from the thousands many Easy market penetration - First mover advantage - Build customer loyalty

29. From Paris To Hong Kong 29 Networking Effect Higher promotional effectiveness - eg: premium cards / discount cards can be used in various locations Customers being locked in and face higher switching costs Customers’ retention

30. From Paris To Hong Kong 30 Locations

31. From Paris To Hong Kong 31 Market Information Widespread of branches Shares demand trends & competitors’ actions in each region Understanding of current market information

32. From Paris To Hong Kong 32 Collective Wisdom Favors product development and differentiation opportunities More access to new know-how

33. From Paris To Hong Kong 33 Technological & Management Support How to make coffee AND how to run a business Skills Full training to franchisees and their staffs for three weeks before the opening of stores Machines Recommendations on the purchase Usage and maintenance of coffee machines and accessories

34. From Paris To Hong Kong 34 Technological & Management Support Management backup Monthly management consultations Management backup whenever needed Higher survival rate in the highly competitive market

35. From Paris To Hong Kong 35 Upstairs Market First mover in upstairs market - Save rent Residential building - Reconfirms its mission home feeling more far away from the street

36. From Paris To Hong Kong 36 Locations Paris Zone8 Jordan Prince Edward Mongkok Tsim Sha Tsui Causeway Bay Paris Café Mongkok Hung Hom Tsim Sha Tsui (Austin Ave) Kwai Fong Tsim Sha Tsui (Ashley Rd) Sheung Wan Causeway Bay (Jardine Bazaar ) Central Lan Kwai Fong Wan Chai Causeway Bay (Gloucester Rd)

37. From Paris To Hong Kong37 Matching Games Activity 2

38. From Paris To Hong Kong 38 Which coffee shop is it?

39. From Paris To Hong Kong 39 Which coffee shop is it?

40. From Paris To Hong Kong 40 Which coffee shop is it?

41. From Paris To Hong Kong 41 B. Weaknesses

42. From Paris To Hong Kong 42 Weaknesses Lack of uniqueness Lack of flexibility Difficult to maintain standardized quality Chain reaction

43. From Paris To Hong Kong 43 Weaknesses Lack of uniqueness No creative ideas and innovation No own theme Magic ElevenDolly Café

44. From Paris To Hong Kong 44 Weaknesses Lack of flexibility Standardization leads to slow response to market change e.g. types of drinks Decoration stick to the theme about Paris

45. From Paris To Hong Kong 45 Weaknesses Difficult to maintain standardized quality Services Home-made food e.g. cakes

46. From Paris To Hong Kong 46 Weaknesses Chain reaction If standardized provision of services are not carried out strictly Clients may have different experiences in different shops Bad impression

47. From Paris To Hong Kong 47 C. Opportunities

48. From Paris To Hong Kong 48 Opportunities Emergence of Starbucks in 2001 Expanding market from Dundas Street to Coffee Street Demand from the online survey

49. From Paris To Hong Kong 49 Opportunities Where do you usually meet your friends (Q.8)?

50. From Paris To Hong Kong 50 Opportunities What concerns you most in deciding where to meet (Q.9)?

51. From Paris To Hong Kong 51 Opportunities How much money do you usually spend on gatherings (Q.7)?

52. From Paris To Hong Kong 52 Opportunities How much time do you usually spend on your gatherings (Q.6)?

53. From Paris To Hong Kong 53 Opportunities The most important factor to go to coffee shops: Amount of time Amount of space Not Coffee

54. From Paris To Hong Kong 54 D. Threats

55. From Paris To Hong Kong 55 Threats Low entry barriers Low switching cost Strong competitors (e.g. Starbucks) Unstable market

56. From Paris To Hong Kong 56 Threats Low entry barriers Easy to get into the coffee shop market Others can follow easily More and more competitors

57. From Paris To Hong Kong 57 Threats Low switching cost Consumer face low switching cost Can easily switch from one coffee shop to another without any loss

58. From Paris To Hong Kong 58 Threats Strong competitors Starbucks Pacific Coffee Upstair coffee shops Survey

59. From Paris To Hong Kong 59 Threats Unstable market Depends on the current market trend Can change anytime

60. From Paris To Hong Kong60 V. Conclusion

61. From Paris To Hong Kong 61 Conclusion SWOT analysis: opportunities (social context) made possible the rise of Paris Café It’s only a trend of coffee-drinking Coffee culture doesn’t take root in Hong Kong Do you agree? Do you think coffee culture will take root here? And why?

62. From Paris To Hong Kong62 Discussion