Lufu Group'S Mainland Strategy "Riding A Tiger Hard" Jewellery Industry Difficult To Pass The Cold Winter

Jewelry industry is going through a "cold winter"!

Following the announcement of the third quarter results of Zhou Dafu's unsatisfactory 2015~2016 fiscal year, another famous jewellery company, Lufu group, also released the third quarter retail sales performance report, which is even more bleak.

The report shows that between September 30, 2015 and the end of December 31st, the sales volume of Lufu group in the same store decreased by 25%, of which 26% of the same store sales in Hong Kong and Macao, and 10% of the same market in mainland China.

It is worth noting that, compared with the previous one or two quarter single quarter data of the mainland market, the group's sales capacity in mainland China has been shrinking.

Analysts pointed out that, in the case of the continued weakening of macroeconomic conditions, such gold jewelry enterprises "ride hard", even if the contribution rate of the mainland jewelry market may be lower than expected, but compared to the decline of Hong Kong and Macao business, the "mainland strategy" has to continue to advance.

The mainland strategy is now exhausted.

Liu Fu is one of the jewellery giants in Hongkong, walking in Hongkong, Jinsha, Tongluowan, Mong Kok and other places, almost every few hundred meters, you can see a store of six lucky jewelry.

A few years ago, even when the store was about to close, the store was still crowded.

However, this situation began to become scarce in 2015. Previously, Lufu group mainly depended on the growth of Hongkong market. With the decline of economic boom, the Hongkong market restricted the growth of the whole group.

In the 2014~2015 fiscal year, the group's multi-phase financial data showed that its Hong Kong and Macao business data fell sharply.

Market pformation has become an important strategy in the development of the group.

Prior to that, in 2013, Lufu Group acquired the mainland's large number of outlets through its acquisition of China's gold and silver group, which has accelerated the overall layout of the group in the mainland since 2014.

While the two markets in the mainland and Hongkong are all affected by the macroeconomic weakness, the decline in the mainland market data is more moderate.

Data show that in the 2014~2015 fiscal year, the income of the group from mainland China was HK $4 billion 3 million 300 thousand, a slight decrease of 5.3% compared with HK $4 billion 226 million 800 thousand in the same period last year.

At that time, Hongkong's market income was HK $9 billion 513 million 100 thousand, down 20.4% from 11 billion 957 million 100 thousand Hong Kong dollars in the same period last year.

Meanwhile,

The market share is still rising, and the Hongkong market has gradually shrunk.

Against this background, the group has made it clear that the future will be

The mainland is the center of gravity and will add 100 new stores in the Chinese mainland market in the 2015~2016 fiscal year, including 20 straight stores.

Huang Wei, chairman and CEO of Lufu group, has also publicly stated that the target is the next 3 years and the mainland market share is 50%.

Xue Shengwen, a senior researcher at CIC, analyzed from the market point of view that "the growth rate of gold and jewelry sales of Lufu group has been slowing down. One of the reasons is that the macroeconomic downturn has affected the consumption demand of gold and jewellery, and that the enthusiasm of" Chinese aunt "is gone forever. The second is that the overall price of gold in 2015 shows a downward trend, and the interest of market investors in gold remains untenable.

In addition, the increasing anti-corruption efforts have also inhibited the performance of gold and its accessories in the gift market.

According to the insiders of a A listed company, "the intuitive feeling is that since the second half of 2015, the boom in the market (the mainland market) has slowed down.

In addition to the weak macroeconomic market, the impact of other investment markets has been disrupted, disrupting some spending plans.

However, as of the 2015~2016 fiscal year, the three quarterly report is the latest.

The mainland's business performance of Lufu group has been poor, and its sales growth in the same store has slowed down considerably.

Specifically, in the third quarter of 2015~2016 fiscal year, China's overall sales fell by 10% compared with the same period last year, while the year-on-year data grew 2% in the first quarter.

From the point of view of subdivision business, gold sales declined, and in the second quarter it fell 1% compared with the same period last year, while the third quarter accelerated to 14%. The gold weight sales data suddenly fell from the 10% growth in the second quarter to 10%.

Jewelry can see a sharp downward trend. Looking back to the current fiscal year data, the sales of jewellery and same store in the first quarter of this fiscal year increased by 23% over the same period, and 13% in the second quarter, but only 2% in the third quarter.