Sa-Sa has several methods to segment their customers. The primary method is to classify customers as tourists or residents. Customers can fall into a third category of Mainland residents after the join-venture with Ebeca. With no tariffs on beauty products in Hong Kong, tourists are a major customer base for the perfume and cosmetics industry. The largest chunk of tourists come from mainland China, followed by Taiwan and then by South East Asia. The customers prefer imported products from Europe, USA and Japan as the products reflect quality and prestige.
The customers can then be further profiled by their demographics and buying behavior. The three customer segments are Real Spenders, Best Overall Value Seekers, and Convenience seekers. The real spenders are in their 20s and 30s and are high-income earning professionals, managers or business owners. They spend the highest on skincare products, cosmetics, and fragrances/health supplements. They don’t spend as much on hair care products as they might be going to professional stylists and getting their products from the salon. This segment has the highest number of purchases at Sa-Sa. They might be ones more likely to buy the in-house products leading to greater profit margins for Sa-Sa. One way Sa-Sa can compete is to sell more luxury products to the real spender segment and generate higher profits.
Convenience seekers are usually above 40 years of age and include housewives, blue-collar and part-time workers. They have the lowest level of education and income. Thus they cannot splurge as much as the other segments on fragrances and cosmetics. They spend majorly on skincare and hair-care products. This may be because they might not be able to afford to go to salons. Convenient locations is the prime driver of purchases for this segment.
In the middle are the students and mid-level professionals who seek the best