Retail sales in Hong Kong continued to show signs of
stabilizing in May, following an increase in March sales by value for the first
time in two years, and a marginal rise in April. Overall sales in May went up
0.5% in value compared with the same period in 2016, and total sales volume
edged up 0.7% year on year. Sales of jewelry, watches, clocks and valuable
gifts grew 1.4% by value year on year.
A government spokesman attributed the slightly improved May
figures to the relative upswing in inbound tourism and the resilience of local
consumption demand. Looking ahead, PricewaterhouseCoopers (PwC) predicted a 3%
to 4% jump in retail sales this year amid an easing of political tensions with
mainland China. Part of the reason for the weakness in retail sales over the
past two years was the hostile and polarized political climate in Hong Kong,
which stopped mainland visitors from coming, said Michael Cheng, a partner with
the professional-services firm, in a South China Morning Post report. He
expects this to improve under the new leadership of Hong Kong Chief Executive
Carrie Lam, who was sworn in on July 1. Visitors from the mainland tend to
spend more than other overseas tourists.
Jeweler Chow Tai Fook reported improved sales performance in
its China, Hong Kong and Macau markets for the fiscal first quarter that ended
June 30 — “reflecting a recovery in fundamentals and stabilizing customer
sentiment,” it said. Retail sales value jumped 17% in China year on year and 7%
in Hong Kong and Macau, while same-store sales were up 11% and 5%,
respectively, compared with the same period last year.
The bridal market in China has grown in recent years, and
jewelry retail chains have tapped into the increased consumer demand for
Western-style bridal pieces.
“There is a steady demand from over 10 million newlywed
couples in China each year, and a rising trend in wedding proposals, coupled
with an increasingly affluent and well-educated Chinese population who are more
sophisticated in jewelry and diamond selection,” a spokesperson for Chow Tai
Fook said. “We expect the demand in China for wedding jewelry and diamond
engagement rings to continue to grow in popularity.”
Storytelling is an important component of the company’s
marketing strategy. “Inspiring our customers with stories is one of the most
effective ways to connect with them, particularly the young generation,” the
spokesperson stated. “We engage celebrities and key opinion leaders to market
our brand-new ‘Wedding Gift Card’ [program] and our new wedding products via
micro-films on social media and online channels.”
Sally Ryder, founder of Ryder Diamonds, which specializes in
making bespoke bridal jewelry from conception through creation, also employs
storytelling in selling her company’s experience.
“We tell the story of our humble beginnings, [which] started
out of my passion for the art of handcrafting jewelry, searching Hong Kong to
find the most talented jewelers, and creating a workshop where we specialize in
fine design and craftsmanship,” she said. “Our clients are intimately involved
in choosing their stones, describing their likes and dislikes in design,
approving their sketch before crafting begins, and then seeing their piece
being made in our workshop.”
That ability to come on-site and watch the craftsmen working
on the piece of jewelry is a key part of the customer’s journey, she continued.
“This experience is all part of their story about how their special piece came
to life. We love being able to provide them the chance to create their own
story. It’s the story that can be just as precious as the gems themselves.”
Image: iconicbestiary@gmail.comArticle from the Rapaport Magazine - August 2017. To subscribe click here.