Zhou Dafu'S Performance Decline In Mainland China'S Two Or Three Line Market

On the evening of November 25th, Zhou Dafu released the interim results for the 2015 fiscal year ending September 30th.

Data show that Zhou Dafu's mid term turnover decreased by 22.4% over the same period last year, and net profit decreased by 23.3% compared with the same period last year.

In the industry's view, the mainland's lower tier cities will be the market for Zhou Dafu to develop new opportunities.

Data show that in the first half of fiscal year, Zhou Dafu increased 114 stores, of which 85% accounted for the mainland.

As for the retail outlets with more retail outlets, the increase of two or three and below cities accounted for 90%.

Data show that the median turnover of Zhou Dafu was HK $29 billion 320 million, a decrease of 22.4% over the same period last year.

Among them, the turnover in the mainland market was HK $17 billion 11 million, a decrease of 12.4% compared with the same period last year, and the turnover in Hong Kong and Macao was reduced by 32.9%.

According to the classification, sales of jewellery jewelry increased by 24.8%, accounting for 28.3% of the turnover, while sales of gold products, which accounted for nearly 50% of sales, decreased by 41% compared with the same period last year.

In this regard, Zhou Dafu said that the decrease in sales of gold products was mainly due to the sharp fall in international gold prices in the first half of fiscal year 2014.

The high base effect caused by the increase in sales volume.

In fact, since the 2015 fiscal year, Zhou Dafu's performance has not been very good.

In the first quarter, Zhou Dafu did not include e-commerce sales in the same store plummeted by 40%.

In addition, its retail value fell 32% year-on-year.

At that time, Cui Yu, consultant consultant of CIC, told reporters that although the early base was the main reason for the sharp decline in the volume of retail sales of Zhou Dafu, but after the gold price stabilized, the business situation of Zhou Dafu was also very difficult to rise and fall. This is closely related to the growth and stability of Hongkong's regional consumption.

"Inland

It is still our main source of turnover. "

In the interim report, Zhou Dafu stressed.

Prior to its management also admitted that for various reasons, Zhou Dafu Hongkong market downturn is a fact, the mainland will become the main battlefield of Zhou Dafu's future.

Zhou Ting, President of the Institute of wealth and quality, told reporters that because of the impact of international brands, especially jewelry brands in the first tier cities, Zhou Dafu's brand advantage is getting smaller and smaller. The three or four line city is a new opportunity for it.

It also points out that in recent years, it has concentrated on expanding the retail outlets network in the two or three tier and sub tier cities.

"These cities have higher economic growth rates, generally have a higher resistance to global economic fluctuations, and their jewelry market is developing faster."

In the first half of the fiscal year, Zhou Dafu added 99 retail outlets to the mainland market, including 10 outlets in the first tier cities, and nearly two or three of the new outlets in two or three cities.