Online boost for Chow Tai Fook Jewellery

Chow Tai Fook Jewellery Group’s fourth quarter saw e-commerce business soar in Mainland China.

Retail sales value grew at the rate of 38 per cent year-on-year accompanied by a volume boost of 34 per cent.

During the three months to the end of March, the percentage of retail sales value settled by Alipay, China UnionPay, WeChat Pay or RMB in the Hong Kong and Macau market – a proxy for sales contribution from mainland tourists – improved to 51 per cent from 44 per cent for the same period last year.

Both the value of retail sales and same-store sales continued to improve in both the Mainland China and Hong Kong/Macau markets. Hong Kong/Macau had relatively stronger growth during the quarter thanks to improved consumer sentiment and a revival of visitor numbers from the mainland.

In Mainland China, same-store sales of gem-set jewellery declined while retail sales value stayed positive. The same-store average selling price improved to HK$7100 (US$905) from $6500 a year earlier.

In Hong Kong/Macau, both volume and average selling price at same-store level increased during the quarter. There was double-digit growth in same-store volume while the average selling price improved to H$13,000 from $12,400.

An increase in volume drove same-store sales performance of gold products in both markets. The average selling price improved with an increased gold price (up an average 9 per cent) and higher-value purchases.

The same-store average selling price was $4400, up from $3900, in China while the figure for Hong Kong/Macau rose to $7900 from $7000.

Chow Tai Fook ended the quarter with 20 more points of sale. This included 17 outlets opening in China, one in Hong Kong/Macau, one in Taiwan and two in Korea. One point of sale closed in the US, taking to total of outlets to 2585.