Chamber General Committee Member PC Yu gave an inspiring talk in the second instalment of our “Dialogue with the General Committee” on 22 March.

As Director and General Manager of Yue Hwa Chinese Products Emporium Ltd, Yu shared with members the secrets to managing one of Hong Kong’s leading retail groups, as well as how the company has evolved to adapt to the changing market dynamics over time while remaining focused on offering Chinese and other quality products.

As a second-generation family business leader, Yu acknowledged that the retail business was very challenging. “Starting a business is difficult, but maintaining it is even more difficult,” he said, quoting a Chinese saying. He added that in a family business, it is more difficult with a patriarch and founding elders, as they needed to be convinced that things are changing.

Sharing the company’s success story, Yu said it was all about evolving within the ever-changing business landscape. Recalling the environment in the 1960s and 1970s, Yu said it was probably the best time for the company in Hong Kong. With a high demand during those years for inexpensive, high-quality and durable goods, Chinese products played a key role in meeting local needs.

In the early 1980s, during China’s reform and opening up, demand for imported goods such as televisions, refrigerators and washing machines from Japan was huge in the country. Many overseas Chinese, including people in Hong Kong, used to bring these appliances when they visited their relatives and friends in the Mainland. 

To cater to the rising demand, Chinese emporiums including Yue Hwa, Chinese Goods Center and the Chinese Merchandise Emporium set up an overseas Chinese department. 

Going a step further, Yu’s brother worked out an agreement with Panasonic, under which the Japanese electronics company would ship home appliances directly to the Mainland, while Yue Hwa would sell redemption tickets in Hong Kong. The arrangement was quite an innovation in those days as it allowed ticket holders to collect goods from collection points in Canton, Shanghai and other locations, without having to ferry the bulky items across the border. 

In 1997, the Asian financial crisis broke out, which Yu said was the first major challenge the company encountered since the Cultural Revolution. On analyzing the various departments, he realized that despite sluggish demand for products across the board, sales of traditional Chinese medicine remained resilient. People were still concerned about their health in times of economic downturn.

The idea of opening up specialty stores sprang up from his findings, and Yue Hwa ventured into the health and wellness domain. Since then, the business has grown into an extensive network comprising over a dozen TCM outlets across Hong Kong that stock Chinese herbal medicines and healthcare products.

With its 60-year history, the group is also a pioneer in technology application, explained Yu. “We were the first Asian retail company to use computerized electronic cash registers in 1976,” he noted, adding that they were also the first to introduce the OCR/barcode to Hong Kong in the 80s. With online shopping becoming more prevalent, the group launched an online store to supplement operations.

Despite the popularity of such digital platforms, Yu said there was still room for physical stores in the sector. “As a service industry, you can’t completely rely on computers or the internet. When customers ask questions, you can’t tell them to look up the answers on the internet,” he explained. “We like customers to visit the shop, which allows us to sell more. For example, after buying a product like ginseng, we inquire if they would like to also purchase a double boiler. But if shopping goes online, you can’t employ such sales practices.”

In his long career, which includes both public positions as well as many volunteer services, Yu said he has wholeheartedly enjoyed working. Signing off with a few words of advice on achieving success, he said, “Whatever you do, give it your best. Always put your heart into whatever you do.”