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Chow Sang Sang's Revenue -23% in 2014
Mar 30, 2015 1:59 AM
By Deena Taylor
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RAPAPORT... Chow Sang Sang Holdings International reported that group revenue fell 23 percent year on year to $2.5 billion (HKD 19.25 billion) in the fiscal year that ended on December 31. Sales were impacted by weaker consumer purchasing power, according to the jeweler. The group observed that even though there was no reduction in the number of mainland visitors to Hong Kong, sales were lower especially during the festive season as visitors spent less on high-value items. Company profit decreased 11 percent year on year to $139.3 million (HKD 1.08 billion).
Chow Sang Sang’s jewelry retail sales declined 15 percent to $2.2 billion (HKD 16.93 billion). Jewelry sales accounted for 88 percent of the group's total profit. Jewelry sales in Hong Kong and Macau declined 20 percent with same-store sales growth down by 23 percent. In Mainland China, jewelry sales grew 20 percent with same-store sales growth up by 11 percent and online sales growing by 43 percent.
In Hong Kong, the company added four new shops: two in Mongkok, one in Taipo and one in Tsim Sha Tsui. The group opened 40 new locations during the year covering 100 cities.
Looking ahead, Chow Sang Sang expects demand for higher priced items to continue to decline. As a result, the company will concentrate more resources on developing affordable luxury or dailywear products to accommodate changing consumer habits. The company will also focus on synergies between its online and brick-and-mortar stores following stellar growth for online sales.
While there are currently no new stores planned for Hong Kong and Macau, the company aims to expand its retail network in Mainland China by 50 stores in 2015.
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Tags:
Chow Sang Sang, Deena Taylor, diamonds, Jewelry
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