Announces Collaboration with Taobao Global to Create New Retail Modelwith Integration of Online and Offline Platforms

HONG KONG, CHINA - Media OutReach  - 23 August 2018 -  Sa Sa International Holdings Limited ('Sa Sa' or the 'Group', stock code: 0178) announcedits collaboration with Taobao Global to develop a complete loop retailecosystem with the integration of online and offline platform with the goal toencourage local buyers to start selling as an important role in retailindustry. This collaboration will enhance shopping experience for mainland Chinesecustomers. In celebration of the Group's 40^thanniversary, Sa Sa also revamped its store image to offer customers a morecomfortable and fashionable shopping environment.

Sa Sawill join hands with Taobao Global in order to develop a new collaborationmodel for retail industry. The new collaboration will connect Taobao Globalbuyers, who are familiar with consumption trends, have a unique taste inmerchandise selection and able to motivate their followers by adoptinginnovative retail technology inclusive of Taobao's marketing tools such as livebroadcast to Chinese consumers with diverse characteristics who crave foroverseas products. Buyers from Taobao Global promoteproducts of Sa Sa's Hong Kong retail stores on Taobao's online platform, while mainland customers will be able to purchase SaSa' products through the buyers on the platform. This enhances Sa Sa's brand exposureand boosts its sales by absorbing the online purchasing power.

Taobao Global will promote themost popular products in the first-ever "Taobao Global Counter" to be opened infive of Sa Sa's stores located in Tsim Sha Tsui, Mong Kok and Causeway Bay. Thefirst batch of approximately 70 Taobao Global buyers will be doing in-store livebroadcast shopping and recommending the selected products to mainland consumers.Mainland consumers can watch the live broadcast and do online shopping at thesame time. Taobao Global Counter will be gradually set up in the next batch of around100 Sa Sa's stores in Hong Kong, offering shopping convenience and discounts tomainland consumers.

Dr Simon Kwok, SBS, JP,Chairman and Chief Executive Officer of the Group , said, "Beingthe leading cosmetics and retail group in Hong Kong, Sa Sa possesses a strongphysical retail network. Combining the strengths of Sa Sa's retail stores andTaobao Global's huge base of influential buyers, we will broaden our customerbase through developing a new retail operation model of online-to-offlinecollaboration, which will bring more overseas cosmetics and beauty brands tothe vast group of Chinese consumers. The Group is looking forward to bringing new cross-borderonline-to-offline shopping experience to customers, with an aim of cateringcustomers' purchasing preferences under the trend of "New Retail". Through strengtheningits brand management capabilities and expanding new marketing channels, Sa Sa'sleading position will be strengthened as the best choice of sole agent for overseascosmetics and beauty brands entering the mainland China. This cooperation alsobrings more diversified products to the Group and gives impetus to its businessgrowth."

Ms Wei Meng,General Manager of Taobao Global , said, "Taobao Global connects active buyers across the globe tomainland consumers and offer different array of unique oversea goods. ThroughTaobao Global buyers' online recommendations, Sa Sa's diversified and trendy productswill be able to swiftly meet Chinese customer's demands for customized goods.We expect that Taobao Global and Sa Sa can develop a new retail model with thejoining of online and offline platforms and bring a more personalized andadvanced shopping experience to users. The shopping model provides qualitymerchandise and offers an official regulated place in hope of encouraging morelocal residents to pursue the role of being buyers and realise their dreams ofowning a business."

In celebration of theGroup's 40^th anniversary, Sa Sa is going to revamp image of itsstores, including the 5,300 sq. ft. Grand Plaza Store in Mong Kok, 3,600 sq.ft. Grandmark Store in Tsim Sha Tsui, 1,200 sq. ft. Metro Town Store in TseungKwan O, 1,300 sq. ft. Tuen Mun Town Plaza Store and 1,500 sq. ft. San HongStreet Store in Sheung Shui. Six new stores in Hong Kong slated for opening inthe second half of 2018 will also adopt the new design. Sa Sa's staff will havenew uniform, providing professional and attentive services to our customers ina brand new image.

About Taobao Global

Taobao founded TaobaoGlobal in 2007 to enhance overseas shopping experiences, connecting activebuyers and consumers across the globe to offer Chinese consumers withunique arrays of overseas products.  Taobao Global buyers living abroad excel inexploring local quality brands and are familiar with running social media andhave a loyal fan base. Promoting products through live broadcast and videoclips on social media, they bring a brand-new shopping experience to consumers.Buyers play a key role in incubating the brands at Taobao Global. Certain brandsrecommended by the buyers have already become the bestselling items on TaobaoGlobal. Being the first overseas shopping gateway in China, Taobao Global bringsoverseas small- to medium-sized brands to the enormous market of mainlandChina.

Taobao Global has a scale of over 20,000 buyers, spanningacross 70 countries and regions all over the world including Hong Kong, andworks with around 200,000 brands. Cosmetics and beauty products is thesignificant product category on Taobao. According to the "2018Overseas Cosmetics Trend Report" published byTaobao Global, over 13,000 cosmetic and beauty brands are from abroad andmore than 500 million cosmetic and beauty products were sold last year.

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Sa Sa's 40th Anniversary Ceremony
New Uniform Design Sa Sa has invited renowned couture designer Mr. Barney Cheng to design a new uniform for our beauty consultants, creating a vivid "making life beautiful" image. Similar to the uniform launched for the Group's 35th anniversary, the new uniform will continue to adopt black as the major color to maintain Sa Sa's elegant style and incorporate the latest "athleisure" elements into the chic and stylish 40th anniversary new uniform.   The outer coat collar and sleeves are in pink, adorned with gold and silver that project an energetic and charming image with hospitality. A pair of black trousers highlights the brand's nobility. The color contrast will surely draw more young customers by injecting color dynamics to the brand.
New Store Image With its morale of "making life beautiful", Sa Sa is in the hope of making every generation pretty and everyone precious eternally. Sa Sa's stores will feature a brand new image, demonstrating modernity and simplicity with black and white to be the theme colors. In the counters of skin care, fragrance, make-up, hair care and body care products, counter edges will be painted in dark and gold-brass colors to have a touch of elegance and uniqueness. To enrich the visual, a stark color contrast and simple lines can create a sense of spaciousness and brightness in soft and warm lighting while products presented in vertical style allows a clear view at a glance.   In the spatially widened new stores, customers can slow down their pace and purchase their favorites in this cozy environment, from selecting the most fashionable cosmetic products to testing their skin by using the 3-in-1 skin analysis system to enjoy the ease of beauty technology. Our professional beauty consultants will provide customers with analysis service and assist them to pursue beauty, health and joy in life.