Upswing for Chow Tai Fook Jewellery Group
Chow Tai Fook Jewellery Group’s eCommerce business in Mainland China grew its retail sales value (RSV) by 25 per cent during the three months to the end of December.
Releasing unaudited key data for the quarter, Chow Tai Fook says its eCommerce business contributed 4 and 12 per cent of RSV and retail sales volume respectively in China.
RSV performance for both the Mainland China and Hong Kong/Macau markets improved sequentially in the quarter thanks to stabilising fundamentals and a relatively low base of comparison.
Chow Tai Fook says the improving trend in the group’s RSV performance, as well as its holiday sales, was generally in line with expectations.
Both the Mainland China and Hong Kong/Macau markets recorded a volume decline in same-store sales (SSS), yet the average selling price (ASP) grew during the period. In particular, the ASP of gold products increased as the average international gold price rose 10 per cent during the quarter compared to the same period last year.
There was a 47 per cent drop in RSV settled by China UnionPay or RMB to the total RSV of the Hong Kong/Macau market, a proxy for sales contribution from mainland tourists. This compares with a 51 per cent fall during the same period last year, but the contribution was an improvement when compared to the first half’s 45 per cent.