Tod’s rues anti-graft program
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China mainland’s anti-corruption campaign has taken its toll on Italian luxurious footwear model Tod’s’ Hong Kong gross sales.
So, too, the altering demographic of mainland vacationers, which rival trend manufacturers have additionally blamed for softening gross sales.
Tod’s says mixed China gross sales fell 15 per cent noting buyer visitors in its shops, and spending, skilled a “giant lower” within the quarter.
Larger China gross sales accounted for 20.1 per cent of the corporate’s complete international turnover of euro 257.7 million, up one per cent on the identical quarter in 2014. China gross sales have been thus euro 53.9 million.
Gross sales in Italy accounted for 34.eight per cent of its complete gross sales.
Tod’s additionally famous in its report that rents are “too excessive” in Hong Kong.
The group has 79 of its personal outlets in higher China, together with 67 within the mainland, 11 in Hong Kong and one in Macau. It has one other 25 franchised shops throughout the area.
This yr the corporate expects to open new shops in Chongqing and Zhengzhou underneath its personal possession and one other, franchised, outlet in Sanya.
Questions & Answers
Q.What percentage of Tod's global turnover does Greater China account for?
What percentage of Tod's global turnover does Greater China account for?
Greater China accounts for 20.1 per cent of Tod's total global turnover. This figure is up one per cent compared to the same quarter in 2014, contributing euro 53.9 million to overall sales.
Q.What factors has Tod's identified as contributing to its sales decline in Hong Kong?
What factors has Tod's identified as contributing to its sales decline in Hong Kong?
Tod's has attributed the sales decline in Hong Kong to mainland China's anti-corruption campaign and the changing demographic of mainland tourists. The company also noted that high rents in Hong Kong are a concern.
Q.How many Tod's stores are there in Greater China, and how are they distributed?
How many Tod's stores are there in Greater China, and how are they distributed?
Tod's operates 79 of its own stores in Greater China, with 67 in mainland China, 11 in Hong Kong, and one in Macau. Also, there are 25 franchised stores across the region.
Q.Where does Tod's plan to open new stores this year?
Where does Tod's plan to open new stores this year?
This year, Tod's plans to open new company-owned stores in Chongqing and Zhengzhou. A new franchised outlet is also expected to open in Sanya, expanding its presence in the region.
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