Chow Sang Sang and Luk Fook eye new move to boost holiday sales
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Jewelry retailers Chow Sang Sang Holdings (00116.HK) and Luk Fook Holdings 00590.HK) are said to be waiving the craftsmanship fee on their gold products in a bid to spur sales during the upcoming Labor Day holidays.
The promotional period will last for six days until May 2 at Chow Sang Sang, and until May 4 in the case of Luk Fook, according to the Hong Kong Economic Journal.
Chow Sang Sang’s Greater China general manager for retail operations, Lau Hak-bun, was quoted as saying that the move is aimed at addressing a slowdown in business.
The jewelry retailer has seen a 20-percent decline in revenue during the first quarter despite a 10-percent bounce in gold prices.
With the waiver of the craftsmanship fee, customers can save HK$400 to HK$1,000 on wedding bracelets, according to Lau.
A slowdown in tourist arrivals from the mainland has affected Hong Kong’s retail sector, with luxury goods shops particularly feeling the pinch.
Export sales of Swiss luxury watches fell 16.1 percent in March, with sales to Hong Kong tumbling as much as 37.7 percent, according to data from the Federation of the Swiss Watch Industry FH.
Questions & Answers
Q.Why are Chow Sang Sang and Luk Fook waiving craftsmanship fees on gold products?
Why are Chow Sang Sang and Luk Fook waiving craftsmanship fees on gold products?
The retailers are waiving fees to boost sales during the upcoming Labor Day holidays. Chow Sang Sang's general manager stated the move aims to address a business slowdown, with their revenue declining 20 percent in the first quarter.
Q.How much could customers save on a wedding bracelet with this promotion?
How much could customers save on a wedding bracelet with this promotion?
Customers could save between HK$400 and HK$1,000 on wedding bracelets by taking advantage of the craftsmanship fee waiver. This saving is according to Lau Hak-bun, Chow Sang Sang's general manager.
Q.What is the duration of the craftsmanship fee waiver for each company?
What is the duration of the craftsmanship fee waiver for each company?
Chow Sang Sang's promotional period for the fee waiver lasts for six days until May 2. Luk Fook is offering the waiver for a slightly longer period, with their promotion ending on May 4.
Q.What impact has the slowdown in tourist arrivals had on the Hong Kong retail sector?
What impact has the slowdown in tourist arrivals had on the Hong Kong retail sector?
A slowdown in tourist arrivals from mainland China has negatively affected Hong Kong's retail sector. Luxury goods shops have particularly felt the impact, leading to decreased sales for businesses like these jewelers.
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