Hongkong Jewelry Industry "Once Shopping Paradise" Retail Decline

Retail sales in Hongkong are declining, and jewelry and watches and other luxury goods industries bear the brunt. The latest achievements of Zhou Dafu, Zhou Shengsheng, Liu Fu group and Xie Ruilin, the four heavenly kings of Hongkong jewelry industry, show that the entire Hongkong luxury market is being tested. Hongkong's luxury brand Prada, which was listed in Italy in the first quarter of 2015, plunged 44% to 58 million 700 thousand euros, indicating that the decline in the Greater China region was the most important factor. The slowdown and anti-corruption actions led to poor sales in mainland China, while sales in Macao and Hongkong also declined due to the decline in mainland tourists.

The latest annual report released by Lufu group as of March 31, 2015 shows that its annual turnover dropped by 17.1%, from HK $19 billion 214 million 900 thousand to HK $15 billion 922 million 700 thousand in the same period last year. Net profit fell 13.4%, from HK $1 billion 864 million 900 thousand in the same period last year to HK $1 billion 614 million 800 thousand.

Several other Hongkong jewelers also continue to face the same decline. As of March 31, 2015, Zhou Dafu's turnover fell 17% to HK $64 billion 277 million, and net profit fell 25.7% to HK $5 billion 534 million. In the 2014 fiscal year, Zhou Shengsheng's income fell 23% to HK $19 billion 250 million, and the net profit of shareholders decreased by 11% to HK $1 billion 80 million. Xie Ruilin earned only 39 million 758 thousand yuan in the 2014 fiscal year, down 46.7% from last year, and the total sales volume decreased by 4.6% to HK $3 billion 871 million.

For the 2014 fiscal year performance decline, Zhou Dafu said, mainly by the 2013 financial year gold rush tide caused a high base influence, and in the second half of fiscal year 2014, the consumption desire in Hong Kong and Macao weakened.

While the six Fu group said that the high base effect caused by the gold rush began to decline in the third and fourth seasons, and the global economic recovery was slow. Other popular tourist destinations such as Europe, Japan, South Korea and so on. Currency devaluation And the relaxation of visa measures brought negative effects on visitors to Hong Kong and Macao and slowed down the rebound in group retail business.

Huang Weichang, chairman and chief executive of Lufu group, even predicted that the same store sales in Hong Kong and Macao will fall by 20% in the first quarter of the new fiscal year, but the same store sales will decline to double digit or even single digits throughout the year.

On the other hand, due to the influence of the mainland's efforts to fight corruption and luxury purchases, the Hongkong Retail Management Association recently pointed out that the retail industry is continuing to languish, especially jewelry watches. consumption Bear the brunt of the annual drop of more than 10%. According to Dead Leung Ban's data, sales of jewellery and clocks fell 17.2% in Hongkong from 1 to April this year, while the sales of fashion and accessories dropped by 3.8% over the same period last year.

In contrast, the mainland Gold jewelry Leading old Feng Xiang shows relatively stable performance. Although Lao Fengxiang earned 32 billion 830 million yuan in the 2014 fiscal year, a slight decrease of 0.45% over the same period, its net profit to the parent company was 940 million yuan, an increase of 5.6%. In the first quarter of 2015, Lao Fengxiang's income increased by 19.1%, and its net profit rose by 22.6%, far exceeding market expectations.

In response, an industry insider told reporters that the performance base of the gold rush in 2013 had a certain impact on the performance of these jewellers in the 2014 fiscal year, but more importantly, the market environment with multiple factors changed. "Compared with the jewelry companies in the mainland market, Hongkong jewelers have stronger brand management capabilities, but mainland jewelry enterprises are more responsive to the mainland market environment."