I know of a
retailer who has
created a bench
jeweller concept
for consumers to
build, repair, and/
or polish their
rings as a touch of
personalization.
These are creative
ways in which
retailers are
expanding beyond
conventional
methods
Harsh Maheshwari,
Kunming DiamondsJewellers are working on pending
orders as parts of U.S. are opening up.
However, India opening up remains
crucial to Hong Kong jewellery industry’s
health as it is the sourcing hub – if India
doesn’t open up, it will heavily affect the
supply chain and operation will not be
smooth.
Retail needs resurgence
Closure of Mainland border due to
Covid-19 has affected retail sales in
Hong Kong to a large extent as the city
largely depends on inflow of tourists from
China and anywhere else in the world.
Jewellery and watch sales plummeted by
69.7 per cent to HKD 2.02 billion ($261
million) in May. HK’s largest jeweller
Chow Tai Fook reported a 36.6% drop
in profit but is still optimistic about
demand in Mainland China. The retail
giant is planning to close at least 10-15
stores in HK and Macau, however, as
demand from China seems to be steady,
the company plans to expand using the
franchise model, aiming to open 400-
450 more points of sales by the end
March 2021. Retailer Luk Fook is also
struggling. The decline of same-store sales in the first three weeks narrowed to
around 60 percent, while overall shops in
the mainland market showed progressive
improvements with a less than 20-percent
decline in June as compared to the
20-per-cent drop in April to May and
40-per-cent drop in March. The retailer
will close five stores in Hong Kong and
open two in Macau.
Many retailers have negotiated with
their landlords – their rents have been
significantly cut to tide through the
current period. “For most retailers
around the world, things are looking bad
and Hong Kong is no different. When
we ask for payments they want to return the goods. But we are cooperating with
them. We are being patient and extending
the credit by six months. I do believe
that nothing will change before second
quarter of 2021. So, if retailers don’t get
support from suppliers and owners of the
place they are renting, they won’t be able
to survive,” says Nigam.