Hongkong'S Overall Retail Environment Is Weakening And Bullish On The Mainland Market.

The weakening of the overall retail environment in Hongkong has led these jewellery and luxury retailers to rely more heavily on the mainland market.

In the financial report, Liu Fu said that it will focus on mainland China. In the current fiscal year, 100 new stores will be added to the mainland market, including 20 direct outlets. The Group Chairman and CEO Huang Weichang said that the goal is to double the mainland market share to 50% in the next three years.

Such a decision is not abrupt. According to Huang Weichang, the mainland market, which accounts for 25.1% of the sales, contributes 33% of the profits of the group, that is, 1/4 of the revenue contributed 1/3 of the profits.

Therefore, Liu Fu continues to expand in the mainland market.

Last year, Lufu group closed 4 Direct stores to 79 in the Chinese mainland market, but added 115 brand stores to 1240 stores, with a total increase of 111 to 1319 stores.

It has also decided to shift its focus to the mainland market.

In the past fiscal year, the overall sales of the same store under the banner of Zhou Dafu fell 24.1% year on year, of which Hong Kong and Macao region fell 32.8% year on year, and the mainland fell 16.1%.

The retrogression of the mainland market is somewhat mild, and the potential of the mainland market is very large. President Zhou Dafu, speaking at a press conference in Hongkong, said Future Ltd will actively develop the mainland market.

In store expansion, Zhou Dafu

Huang Shaoji, managing director of Group Co., Ltd.

The flow of people and business has been declining since the second half of last year. Although the recent decline has slowed down slightly, the overall flow of people has slumped 20%-30% over the same period. Therefore, some stores in the Hongkong market will be closed and integrated.

In China's mainland market, the opening rate will be slower than the 200 planned stores, but 150 new -170 stores are expected to be added this year.

Turning to the future trend of the jewelry industry, a brokerage analyst told reporters that the international gold price, which has been falling from high position for 3 years, is now showing a steady trend.

For jewelers, the period of gold price declines is basically in the past. In 2015, the industry is likely to see a rise in volume and price, and the growth rate will pick up.

Other international luxury goods traders who relied heavily on the Hongkong market are also rethinking their strategy.

Many luxury brands, including Patek Philippe (PatekPhilippe) and Chanel, have reduced the spread of prices in mainland China, Hongkong and other international markets.

Michel Gutsats, vice president of Marseilles business school, told the first Financial Daily reporter that a company's pricing strategy reflects its market strategy, and it wants consumers to buy their products anywhere.

Chinese consumers are the first main force in the global luxury market, but they buy them outside the mainland of China, so that they can not provide better services, such as the establishment of the customer management system. "Luxury brands should follow consumers, adjust their sales methods, services and sales promotion."