Hong Kong Jewelry retail sales soar
By http://www.jewellerynetasia.com
Hong Kong’s jewellery market continues to flourish, with total sales of jewelry, watches and premium gifts reaching US$2.78 billion in the second quarter of 2011, 59 percent higher than in the corresponding period last year.
Despite the recent global financial turmoil, the sales figures are expected to rise further thanks to robust spending by mainland Chinese tourists, who consider gold and diamonds effective hedges against inflation.
Top Hong Kong jewellery brands – Chow Sang Sang (CSS), Chow Tai Fook, Luk Fook and TSL – report brisk business across the board.
Luk Fook maintained its same-store-sales growth of over 50 percent in the April to June 2011 period owing to stronger demand for jewellery coupled with surging prices of gold and diamonds. The group has been expanding its presence in mainland China through licensing, and is expected to supply 85 percent of its self-managed jewellery to licensees by March 2013.
Operating more than 30 and 650 jewellery stores in Hong Kong and mainland China respectively, Luk Fook reportedly aims to increase its number of mainland stores to 920 in the coming two years.
Distinguishing it from its competitors, Chow Sang Sang self-operates all its stores. With 50 jewellery shops in Hong Kong and 197 stores in the mainland, the retail giant targets mid-to-higher-end customers and focuses on quality in its expansion. While it usually takes 12 to 18 months for a new shop to become profitable, over 90 percent of CSS stores opened in 2010 are generating profit. The company plans to open 100 outlets in the mainland over the next two years.
Same-store-sales growth for CSS exceeded 28 percent in the first quarter of 2011 and is expected to remain strong for the rest of the year. The retailer will announce its interim results this Thursday.
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