It appears K11 Group’s bet on its “cultural commerce” business model is paying off, as K11 Musea in Tsim Sha Tsui reports a 120 percent surge in its overall sales this summer compared to pre-pandemic levels.
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In addition, more than 30 percent of tenants at K11 Musea and K11 Art Mall, also located in Tsim Sha Tsui, recorded unprecedented sales performances across dining, retail, and entertainment at both malls.
Both establishments have achieved their highest footfall since their respective openings, likely due in part to Hong Kong lifting its Covid-19 restrictions in the first quarter of the year.
K11 Musea, which opened in 2019, was 10 years in the making and a project of New World Development CEO Adrian Cheng, the third generation scion currently at the helm of the conglomerate. Cheng is well known for his support of the arts, particularly through his K11 Foundation.
The number of active members in KLUB 11’s highest-spending consumer group, Black Card Members, has also seen a notable increase of 210 percent compared to pre-pandemic levels, with their total spending reaching approximately HKD 1.1 billion (USD140.1 million) in the past 12 months.
K11 Concepts’ focus on cultural commerce has not only drawn a significant number of affluent customers and generated foot traffic. K11 Musea’s occupancy rate has remained consistent at 98 percent, demonstrating the substantial demand for premium retail spaces within the mall.
Among the brands that have recently expanded to K11 Musea are the outdoor brand National Geographic and Swiss watch brand Swatch. K11 Art Mall has also welcomed additions such as Arc’teryx, Lush, and Rains.
The fourth quarter will see K11 Musea build on its current success, with a series of cultural events set to take place. Coming soon is the international art exhibition Digital Art Fair in October, which will also include a digital art auction staged in collaboration with premier auction house Sotheby’s.
The mall will also debut collaborations with Parisian fashion label Maison Kitsuné, French perfumer Maison Margiela Fragrances, MoMA Design Store, and a new Thai fine dining restaurant, Niras.
K11 Group is also set to launch its 11 Skies project, an upcoming destination for retail, dining, and entertainment as well as wellness and wealth management. 11 Skies will span 3.8 million square feet in SkyCity, strategically placed near the Hong Kong International Airport and the Hong Kong Zhuhai-Macao Bridge. By 2026, K11 Group is set to establish a presence in 10 cities across Greater China, with a total of 38 projects spanning an impressive gross floor area (GFA) of 2.80 million square metres.