PapaHome to open second Hong Kong store as online-to-offline strategy pays off

PapaHome, a partnership between Chinese e-commerce platform Taobao and local home repair platform Papabo, will open a 40,000 sq ft furniture and lifestyle store in Causeway Bay in the second quarter of next year.

The outlet in Fashion Walk would be the Hong Kong-based company’s second in the city, after it opened its first bricks-and-mortar shop in Tsim Sha Tsui in February, according to a statement from the joint venture on Friday. Taobao, which does not own a stake in PapaHome, is operated by Alibaba Group Holding, the owner of the South China Morning Post.

The expansion of the one-stop home decor platform’s stores in the city underscores the evolution of the online-to-offline retail strategy, which is helping absorb some of the vacant retail space in Hong Kong.

“Our average ticket size has tripled since the opening of our physical store,” said Andy Wong, CEO of PapaHome. “We’ve observed people confidently placing consistent six-figure orders through Taobao’s platform after visiting PapaHome, which proves Hong Kong is ready for the next era of e-commerce.”

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Chinese e-commerce giant Taobao opens first physical shop in Hong Kong’s Tsim Sha Tsui

The hybrid model was the cornerstone of the group’s growth strategy, he said.

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PapaHome to open second Hong Kong store as online-to-offline strategy pays off

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