International News
Chow Sang Sang sees 15% decline in sales, 20% drop in profit
Chow Sang Sang’s- China’s third biggest jewelry retailer (by revenue) – 2024 financial results reveal a company grappling with significant headwinds in its core markets. The reported net loss of 74 stores out of 1,032, coupled with a 15% decline in sales and a 20% drop in profit, paints a picture of a retailer under considerable pressure.
Significant Closures: The closure of 122 stores, predominantly in Mainland China, highlights a strategic retreat in response to declining sales. This indicates a recognition of over-saturation or underperforming locations. Limited Expansion: Opening only 48 stores suggests a conservative approach, focusing on optimizing existing resources rather than aggressive expansion.Future Uncertainty: The company’s statement regarding “prudent… physical store network consolidation” implies further closures are possible, reflecting a pessimistic outlook on near-term market recovery.
Revenue Decline: The 15% drop in revenue (HKD 21.18bn) signifies a substantial reduction in consumer spending on jewelry .Profit Slump: The 20% decrease in profit (HKD 805.6m) underscores the impact of reduced sales and potentially heightened operational costs.Same-Store Sales Decline: The steep decline in same-store sales (38% in Mainland China and 24% in Hong Kong and Macau) indicates a systemic issue, not just localized problems. This suggests a broader consumer shift away from jewelry purchases.
Weak Demand: The report attributes the poor performance to “weak demand,” suggesting a shift in consumer preferences or reduced discretionary spending.Record-High Gold Prices: Elevated gold prices likely impacted affordability, particularly for gold jewelry, potentially driving consumers to alternative investments or postponing purchases.Economic Slowdown: The economic slowdown in China, Hong Kong, and Macau created a challenging retail environment, affecting consumer confidence and spending.Declining Diamond Demand: The report specifically mentions a drop in diamond demand as a primary driver of the same-store sales decline. This may indicate a shift in consumer preference away from diamonds, or a reduction in high value purchases in general.
Focus on Cost Optimization: The store closures indicate a focus on cost reduction and operational efficiency.Potential Product Diversification: The decline in diamond demand may necessitate a strategic shift towards other product categories or price points.
E-commerce and Online Strategies: In a challenging physical retail environment, strengthening online sales channels becomes crucial.Market Adaptability: The company’s ability to adapt to changing consumer preferences and economic conditions will be critical for its future performance.
International News
IIJS Bharat Strengthens Its Engagement With Vietnam’s Jewellery Industry , Aims Larger Buyer Delegation
The Discussions Highlighted Vietnam’s Strong Demand For Gold and Silver Jewellery, With Indian Silver Jewellery Enjoying Particular Preference Among Vietnamese Buyers
IIJS Bharat has strengthened its engagement with Vietnam’s jewellery industry through a series of high-level meetings and market outreach initiatives aimed at attracting leading retailers, manufacturers and trade associations to the show while deepening India-Vietnam trade ties.
A key meeting, facilitated by the Embassy of India in Hanoi, brought together representatives of IIJS Bharat and the Vietnam Gold Traders Association (VGTA). The discussions were attended by Dinh Nho Bang, President, VGTA; Mr. Vu Hung Son, Vice President and Secretary General, VGTA; and Pearl Goyal from the Embassy of India.
One of the major outcomes of the meeting was the proposal to bring an official VGTA delegation to IIJS Bharat. Leading Vietnamese jewellery companies, including Bao Tin Manh Hai and MHJ Jewelry Ltd, have already confirmed their participation.
The discussions highlighted Vietnam’s strong demand for gold and silver jewellery, with Indian silver jewellery enjoying particular preference among Vietnamese buyers. The Vietnamese delegation also expressed interest in India’s advanced diamond cutting and manufacturing capabilities, opening avenues for greater technical collaboration.
Another key development was the interest shown by Bao Tin Manh Hai, one of Vietnam’s leading gold jewellery retail chains. Owned by Mr. Vu Hung Son, who also serves as Vice President of VGTA, the company operates around 100 stores and plans to expand its network to 300 outlets. The company is exploring a joint venture opportunity in India, with further discussions expected during IIJS Bharat.
The meeting also explored opportunities for broader bilateral cooperation, including the possibility of an India Pavilion at Vietnam’s Gold Jewellery Exhibition scheduled for September next year.
Expanding its outreach beyond Vietnam’s major cities, the IIJS Bharat team visited Bac Ninh, home to the Vietnam Gemstone Association (VAG). Meetings with the association’s president and senior officials resulted in a proposal to bring a VAG delegation to IIJS Bharat, which received a positive response. The proposal has since been formally acknowledged by the association.
During the visit, GJEPC representatives also toured a leading gemstone manufacturing facility in the region and personally invited its owner to participate in IIJS Bharat.
The Vietnam campaign concluded with an extensive roadshow across Hanoi and Ho Chi Minh City, where retailers were invited to attend IIJS Bharat and experience India’s jewellery manufacturing capabilities, craftsmanship, product diversity and sourcing opportunities. The outreach reinforced IIJS Bharat’s position as a key global sourcing platform for international buyers seeking reliable partnerships with India’s gem and jewellery industry.
IIJS Bharat Strengthens Its Engagement With Vietnam’s Jewellery Industry , Aims Larger Buyer Delegation
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CIBJO Reaffirms Jewellery Industry’s Commitment To UN Sustainable Development Goals At ECOSOC
IIJS Bharat Strengthens Its Engagement With Vietnam’s Jewellery Industry , Aims Larger Buyer Delegation
GJEPC Webinar Guides Members On Digital Services, E-RCMC Process and Membership Benefits
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International News1 hour agoCIBJO Reaffirms Jewellery Industry’s Commitment To UN Sustainable Development Goals At ECOSOC
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