Gold Dragging Behind "Occupy" To Stop Business, Hong Kong And Jewellery Double Digit Decline

The four largest in Hongkong Jewellery The main brands in the brand, such as Liu Fu and Xie Ruilin, have released the mid fiscal reports for the 2014-2015 fiscal year recently. Surprisingly, all the double-digit declines in the medium-term performance have been spared. Thanks to the turnover of Rui Lin group, the turnover fell by 45.67%. In today's poor sales of gold products and Hongkong's local political situation, Hong Kong investment brands are adjusting the proportion of commodities and stepping up the layout of the mainland's low tier cities.

　　 Performance fund Jewellery Double declines across the board

In November 20th, the Xie Ruilin group released the interim results report for the 2015 fiscal year ending August 31, 2014. The group's turnover was HK $1 billion 818 million, down 14.6% from HK $2 billion 129 million in the same period last year, and its profit was HK $25 million 780 thousand, down 45.67% compared with the same period last year.

Coincidentally, in November 25th, Zhou Dafu group and Lufu group, which released the mid fiscal results for the 2015 fiscal year ended September 30, 2014, made Hongkong's jewelry brand performance drop to freezing point. Among them, the turnover of Zhou Dafu group was HK $29 billion 320 million, down 22.4% from HK $37 billion 768 million in the same period last year, and the profit was HK $2 billion 736 million, down 24.07% from the same period last year. The turnover of Lufu group was HK $7 billion 542 million, down 25.1% from HK $10 billion 66 million in the same period last year, and HK $807 million, down 16.35% from the same period last year.

Reason gold Dragging the rear foot to occupy the port and shopping in Hong Kong

Hong Kong jewelry brands are all focused on gold business. In the first half of this year, the volatility of the global gold market, such as "roller coaster", also brought many fluctuations in the prices of gold collectibles and accessories. This leads to a decline in purchase intention, which directly results in a decline in brand performance.

Data show that sales of gold products accounted for nearly 50% of the sales of Chow Tai Fook Group were HK $14 billion 528 million, down 41% from the same period last year. The proportion of gold products had reached 60% before earlier; the sales of gold products of Lufu group fell by 39.1% compared with the same period last year; Xie Ruilin group also said in its earnings report that the "gold rush tide" in 2013 resulted in the high base effect of gold business, and the comparable sales of gold business fell considerably this year after the gold market resumed normal.

In addition, due to Hongkong's "occupy the central" action, businesses have to close down, and the number of tourists in Hongkong has also drastically reduced. In the past, due to the tax exemption advantage of the free trade port in Hongkong, a large number of mainland consumers and overseas tourists were shopping. Jewelry was an important category of their consumption.

Reporters also noted that contrary to the sharp decline in gold products performance, the watch business of Hongkong jewelry brands began to bullish. 2015 in the first half of the fiscal year, the turnover of Zhou Dafu's clock business in mainland China was HK $1 billion 778 million, a significant increase of 18.38% over the same period last year. The mainland's clock business was better, with a turnover of HK $1 billion 22 million, an increase of 49.5% over the same period last year. The income of the watch industry in Lufu group increased by 39.5% to HK $167 million, accounting for 2.2% of the group's total revenue.

According to the insiders, the watches and clocks of several major jewellery brands in Hongkong belong to the high-end product line. The moderate price is catering to the changes in the consumption demand of mainland consumers from buying gifts to purchasing personal products.

Strategy to adjust product proportion and develop low level cities

Faced with the instability of the gold market, Hongkong jewelry brand further reduced the proportion of gold products and expanded the proportion of jewelry and watch business. The industry believes that, especially sales surge in the clock business, will become the major jewelry brand layout of the mainland market new growth point of performance.

At the same time, in view of the continuous expansion of the mainland market, the Chow Tai Fook Group, which accounts for 58% of the total turnover of the mainland, is slowing down the front-line market which has already been saturated in the mainland, and the channel has sunk to two or three line cities. 2015 in the first half of the fiscal year, 158 new shops in the mainland of Zhou Dafu were added, of which only 17 in the first tier cities, 76 in the second tier cities, and 58 in the three cities. The number of stores in the 123 tier cities is 10.1%, 45.5% and 44.4% respectively. Lufu group also made clear in its earnings report that the group will further expand the mainland market, expand the retail network to the low tier cities, and enhance the brand coverage.

In addition to adjusting product structure and channel expansion, product concept innovation and design refinement are also the general voice of the industry seeking breakthroughs. Xie Ruilin Group believes that focusing on young customers and expanding their influence among young customers is one of the next goals of the group.

At the same time, the jewelry brands in Hongkong have achieved good results in overseas brands such as diamonds, jewelry and jewelry. As of October 31, 2014, the US Tiffany group achieved sales of $2 billion 964 million in September before fiscal 2015, an increase of 8% over the same period last year, of which 11% in the Asia Pacific region. Tiffany group emphasized that China's mainland market has an absolute contribution.

In the same market and different performance, Hong Kong jewelry brand may be used for reference in brand building, product layout and innovation. Tiffany group's performance growth mainly comes from fashion jewelry category. Beijing Business Daily reporter Wang Xiaoran Shen Suran