On 25 March 2014, Hong Kong jewellery retailer Chow Sang Sang Holdings International Limited (CSS) announced the annual result for 2013. Its jewellery retail, as the major contributor to the total turnover and profits, registered a turnover of HK$19,943 million, or 79 percent of the total. Operating profit rose to HK$1,350 million, a 21 percent increase.
According to the report, the turnover of Hong Kong and Macau jumped by 36 percent largely due to the gold rush. However, spending on high-priced items was only slightly higher than last year. Same store growth in turnover reached 33 percent.
In 2013, the stores in Mainland China recorded a total turnover of HK$7,451 million, rising 32 percent above that of the prior year. Same store growth was 20 percent. It was reported that 32 new shops in different cities including Yancheng in Jiangsu, Huzhou in Zhejiang and Datong in Shanxi opened last year. The new plant in Shunde also started production in July.
CSS in addition gave a brief outlook for the jewellery industry and its business plan. It is expected that high-priced items are bound to move slower than in previous years by relying just on self-purchase with little gifting. Demand for gold and gold products is expected to be robust thanks to a relatively low gold price and an auspicious year for weddings. However, with gold price about 25 percent down from 2012, growth in turnover can hardly be expected to be stellar.
The group stated that in order to attract more sales and to improve the margin, it would rely on product innovation and lowering of costs, and to avoid discounting as far as possible. Expansion of the network on the mainland will resume pace of about 50 new shops a year, while Hong Kong and Macau will just open one store respectively.
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