Zhou Shengsheng Wants To Shrink The Store And Turn To The Mainland For Profit Reduction.

In the first half of 2016, the Zhou Shengsheng group's jewelry retail business fell 16% to HK $6 billion 870 million in the first half of 2016, and the other business declined by 14% to HK $930 million.

Accounting for 88% of the group's turnover.

Sales in Hongkong and Macao fell by 26%.

Same store sales fell 26%.

In the first half of 2016, Zhou Shengsheng group's jewelry retail business decreased by 16% to HK $6 billion 870 million, while other businesses decreased by 14% to HK $930 million.

Jewelry retail accounts for 88% of our group's turnover.

Sales in Hongkong and Macao fell by 26%.

Same store sales fell 26%.

Mainland tourists are decreasing and purchasing power is decreasing.

The international Limited by Share Ltd of Chow Sang Sang group, one of Hongkong's four largest jewellers, released its first half of 2016 earnings. Both revenues and profits recorded a decline. Sales fell by 16% to HK $7 billion 801 million, and profits plunged 50% to HK $364 million.

A total of 2 branches were closed during the period, one in Harbour City and one in Disney Park, Hongkong.

The company said the sharp drop in profits was due to a record 246 million yuan in revenue for the same period in 2015.

After the first half of the company's earnings report, share prices continued to fall.

In September 8th, Guotai Junan International announced that it had maintained the rating of Chow Sang Sheng and said that "the company's medium-term performance in 2016 is lower than the market consensus and our estimate.

At the same time, it also lowered the growth hypothesis of the same store sales of Hong Kong, Macao and mainland jewelry stores.

The business environment of jewelry market in Hongkong and mainland is still hard, and there is no sign of improvement.

For the company's performance decline and reduced stores, the reporter sent a letter to Zhou Shengsheng Group International Limited (hereinafter referred to as "Zhou Shengsheng group"), Zhou Shengsheng group customer service reply said it has feedback information to headquarters, if necessary, will contact reporters.

As of press release day, did not receive the reply of Chow Sang Sang group.

Zhou Shengsheng group said that as the price of gold rose, the total weight of gold sold fell by nearly 30%.

The sale of inlaid jewellery has not yet been reversed since 2015.

Macao is still facing a decline in tourists.

The store in the mall is worse than the branch store.

There is not much reduction in the period of renewal, because the big shop tenancy will be reviewed in the last quarter of this year.

Continued rent increased by 2%.

The rent reduction granted by the renewal lease is between 3%~21%.

Capital expenditure is HK $fourteen million, most of which is used for shop decoration and plant upgrading.

Sales were also blocked, while same store sales growth fell by 13%, while jewellery ornaments kept rising.

The capital expenditure for new store opening and 29 branch reloading is RMB five hundred and one million yuan.

Taiwan's retail market is still weak.

There was no significant change in performance over the same period of 2015.

It is worth noting that online sales continued to grow, accounting for 10% of mainland sales.

The proportion of gold products in the sales mix is large.

In this regard, Zhou Shengsheng group said that the first half of 2016 was full of accidents and challenges, especially in Hongkong than in the mainland.

The weak real estate market in Hongkong and the mainland and the lack of momentum in the stock market have inhibited consumption.

As the Hong Kong dollar is linked to the US dollar, the strength of the Hongkong dollar is especially expensive for mainland tourists.

The global economy and evidence are uncertain, and the UK has lifted the price of gold, which has risen by more than 25% in the first 6 months of this year.

Nevertheless, the results did not stimulate consumer demand as gold prices rose.

Prior to this, Zhou Shengsheng group has issued a profit warning, as of June 30, 2016, the interim results of the company's equity holders should account for the profit, compared with the same period in 2015 to reduce 50%-60%.

For the reasons for the decline, Zhou Shengsheng group explained that, first of all, because of the 6 month period ended in June 30, 2015, it recorded a one-time sale of Hong Kong Exchanges and Clearing Ltd shares held by some long lines and gained two hundred and forty-six million Hong Kong dollars.

Second, the decline in turnover is due to weak consumer sentiment in mainland China and Hongkong.

The third is due to the fact that the gold hedging activities during the current period have not been realised, while in the same period of 2015, they are unrealized gains.

In fact, this is the three consecutive year of Zhou Shengsheng group.

Down.

By analyzing the annual report of Chow Sang Sang group in recent years, the reporter found that the turnover of its jewelry retail business was HK $25 billion 140 million in 2013, down to HK $19 billion 250 million in 2014 and HK $19 billion 60 million in 2015.

The company's management said that in the second half of 2015, the slowdown of China's economy and the decline of the renminbi weakened passenger's consumption ability.

The weakness of the real estate market, coupled with the ups and downs of Hongkong and China's securities market, has further deepened the chill of the retail market.

At the same time, Zhou Shengsheng said that in the Hongkong market, the branch network will be reorganized, and the store area will be reduced.

Zhang Peiying, an honorary consultant of the luxury goods (China) alliance, believes that Zhou Shengsheng did not do much in marketing in recent 2~3 years. "They are more concerned about the ratio of investment and income, but as a brand side, the market effect and the brand effect of consumers are still important."

Zhang Peiying pointed out that because of the poor market environment, it is more necessary to make brand marketing, "because marketing activities are mainly driven by brand development rather than money making.

Clear this relationship, the whole brand development, marketing planning layout will have different strategies.