Observation: The Three Line Market "Fight For War" Warming Up

< p > the 2013 annual report of Zhou Dafu, the famous gold jewelry brand, shows that the annual profit of the group has decreased by 13.6%. This is the first time that the group's annual profit has declined in the last 5 years, while the electricity business turnover of the group has increased by nearly 3 times.

Other gold and jewellery brands also lost their profits last year. The recent performance of these brands is also not optimistic since the price of gold has fallen sharply since April.

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< p > Zhou Dafu 2013 annual report shows that although the total turnover in the 2013 fiscal year is 1.5% milder than that in the same period last year, the turnover in mainland China, which is the main source of the group's turnover, declined 5.3% in the 2013 fiscal year compared with the 2012 fiscal year.

At the same time, the group's annual profit decreased from HK $6 billion 570 million 900 thousand in the 2012 fiscal year to 13.6% in the 2013 fiscal year, and the net profit margin decreased from 11.6% in the 2012 fiscal year to 9.9% in the 2013 financial year.

In response, Zhou Dafu said that in the 2013 fiscal year, the jewelry industry faced many challenges and uncertainties.

The decline in consumer confidence has slowed its sales growth and is facing downward pressure on profitability.

Despite a small overall increase in turnover, the group's e-commerce business increased by nearly 3 times in the 2013 fiscal year.

Zhou Dafu said he will continue to invest in various e-commerce tools and platforms.

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< p > similar to Zhou Dafu's case, the 2012 annual report of Ming jewelry shows that the company's operating profit in 2012 was 103 million yuan, with a total profit of 104 million yuan, down nearly 7.

Zhou Shengsheng's 2012 annual report also showed that the group's profit in the year fell by more than 1 compared with 2011.

In the 2012 annual report, Ming Bao jewelry pointed out that the main raw materials of the company's products were gold and platinum. The cost of raw materials accounted for more than 95% of the total cost, while the sharp fluctuations in raw material prices would affect the company's performance.

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< p > although there are not many jewellery Brand Company that publish recent earnings, but since April this year, the price of gold has dropped sharply and the market reaction is weak.

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< p > < strong > reporter observed < /strong > < /p >.

< p > > strong > three line market "battle" warming up < /strong > /p >

< p > with the accelerated development of urbanization, many famous brands are also warming up for the three line market.

In the 2013 annual report, Zhou Dafu stressed the importance of continuing to focus on the development of three lines and sub cities in the mainland of China.

Its rival Zhou Shengsheng and Liu Fu are also highly valued in the three tier market.

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< p > Zhou Dafu annual report shows that in the 2013 fiscal year, the group opened 192 new jewellery retail outlets in mainland China, 112 of which are located in three lines and sub cities, accounting for about 58.3%.

As of March 31st this year, the group had 1743 jewelry retail outlets, of which 1640 were located in the mainland of China, accounting for 94%, while the jewelry retail outlets in three and second tier cities reached 627, accounting for 38% of the total number of jewelry retail outlets in the mainland of China.

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< p > in recent years, Zhou Dafu has concentrated on the three line and the expansion of retail outlets in the second tier cities.

These cities enjoy relatively high economic growth. Generally speaking, they have a strong resistance to global economic fluctuations and their jewellery market has expanded rapidly.

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< p > equally optimistic about the three line market is Zhou Dafu's "old rival" Zhou Shengsheng and Liu Fu.

Zhou Shengsheng's 2012 annual report shows that the list of new cities in the group's list includes Hebei Handan, Shandong Dongying, Dezhou and Weihai.

The 2012/2013 interim report shows that as of September 30, 2012, the group has 23 self operated stores and 286 brand stores in the three and four tier cities, accounting for 30% and 33% of the total number of similar shops in mainland China.

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