E-commerce booms in China for Chow Tai Fook

Chow Tai Fook Jewellery Group’s e-commerce sales in Mainland China grew 140 per cent year-on-year in the first quarter to June 30. Volume surged 125 per cent.

Retail sales value growth overall for China came in a 17 per cent, compared to 7 per cent for Hong Kong/Macau, unaudited figures show.

Same-store-sales growth for China was 11 per cent, with zero growth in sales volume, a 3 per cent rise in gemset jewellery sales and 16 per cent for gold products.

For Hong Kong/Macau, same-store sales grew 5 per cent, with volume growth up 7 per cent, a 4 per cent fall in gemset jewellery sales and a  per cent increase in the sale of gold products.

Both retail  sales value and same-store-sales performance improved for the quarter in the two markets.

An increase in average selling price (ASP) helped boost the same-store sales of gold products in both markets. In China, the same-store ASP was HK$3600 (US$461), compared to $3000 in the first quarter, while for Hong Kong/Macau the figure was $7100 compared to $6800.

Chow Tai Fook says the increase was primarily because of gold product sales having a higher average weight while the average international gold price stayed flat.

Driven by an increase in both volume and ASP, same-store sales of gemset jewellery in China improved during the quarter. The decline in same-store sales of gemset jewellery in Hong Kong/Macau narrowed to a single digit, as volume resumed double-digit growth.

Same-store ASP was $6100, up from $6000 in the first quarter, for China, and $10,800 for Hong Kong/Macau, down from $12,900.

During the latest quarter, the group added 28 points of sale. This included 29 in China, two in Japan and one in the US, with four outlets being closed in Hong Kong. This gave the group a total 2409 points of sale as at the end of June.