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China Expansion Buoys Chow Sang Sang
Aug 29, 2021 8:08 AM
By Rapaport News
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RAPAPORT... Sales at jeweler Chow Sang Sang jumped in the first half of the year as the Hong Kong-based retailer broadened its store network in China and benefited from increased domestic spending.
“Jewelry and watch sales in all markets...exhibited [a] remarkable recovery,” the company said last week. “[The] mainland jewelry retail market showed a rapid return to [the] pre-Covid-19 growth trend. Cutting down on overseas travel certainly benefited domestic consumption. Mainland China revenue surged...thanks to the easing of Covid-19 restrictions, as well as our new store openings.”
Total sales for the first half ending June 30 climbed 69% year on year to HKD 10.83 billion ($1.39 billion), while profit soared 154% to HKD 536 million ($68.8 million). In the jewelry-retail segment, revenue grew 73% to HKD 9.78 billion ($1.26 billion). The group’s other revenue comes from businesses such as wholesaling and real estate.
Jewelry sales in China skyrocketed 94% to HKD 7.16 billion ($919.9 million), while those in Hong Kong rose 33% to HKD 2.53 billion ($325.3 million).
Although sales rebounded in Hong Kong during the first half of the year, Chow Sang Sang does not expect them to return to pre-pandemic levels until tourism from the mainland returns.
“While consumer sentiments have been on the rise since the beginning of the year, uncertainties abound,” the company said. “Any hope of Hong Kong’s border opening up soon was dashed by the recent rampage of the Delta variant of Covid-19 on the mainland and elsewhere. Geopolitical tensions, [a] war of words and sanctions continue unabated. Policy clampdown by the central government on commercial matters are roiling the markets. The list continues…The short- to medium-term goal is to bank on domestic consumption to weather out the dearth of mainland tourists.”
Image: A Chow Sang Sang store in Hong Kong. (Shutterstock)
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Tags:
China, Chow Sang Sang, COVID-19, Hong Kong, Jewelry, Rapaport News
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