News

Advanced Search

Luk Fook Eyes China Expansion

Nov 26, 2020 10:31 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT...
 Hong Kong-based Luk Fook will accelerate its expansion in mainland China, considering the market a strong source of revenues amid struggles in its home territory.

The jewelry retailer plans to open a net 250 new mainland stores in the current fiscal year ending March 31, 2021, mainly in fourth- and fifth-tier cities, it said Thursday. The company also aims to develop its e-commerce activities in China and strengthen its cooperation with online retail platforms, it added.

This comes after revenue slid 47% year on year to HKD 3.34 billion ($431.4 million) in the first fiscal half ending September 30, mainly reflecting a slump in Hong Kong. Group profit dropped 41% to HKD 293 million ($37.8 million).

Sales in Hong Kong nosedived 68% to HKD 1.16 billion ($149.7 million) as the Covid-19 pandemic dented tourist sales and hit local sentiment. Revenue in China dropped at a gentler rate, down 18% to HKD 2.18 billion ($281.7 million).

Luk Fook will shut a net two stores in Hong Kong, reasoning that it will take a while for mainland tourists to return to the municipality and for the retail environment to become normal again. But its outlook for the mainland was more positive.

“In view of the anticipated considerable growth of the middle-class population in [the] mainland, the group remains optimistic about the mid- to long-term business prospects, and will focus its expansion in the mainland market,” it explained. “The group looks forward to regaining business growth in the near future.”

Image: A Luk Fook store at the MixC World shopping mall in Shenzhen Bay, China. (Shutterstock)
Tags: China, Coronavirus, COVID-19, e-commerce, Hong Kong, Jewelry, Luk Fook, mainland china, Rapaport News, retail, tourism
Similar Articles
Pearl in shellCIBJO Launches Pearl Guide Aimed at Consumers
Feb 21, 2021
The World Jewellery Confederation (CIBJO) has released a consumer-targeted publication explaining how to describe and categorize
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2021 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.