Tourist spending patterns in Hong Kong are undergoing a noticeable shift, with a decline in sales of mid-priced jewelry, according to leading gold jeweler Chow Sang Sang (0116).
Chairman Vincent Chow Wing-shing said the market is becoming increasingly polarized, with a rise in purchases of entry-level jewelry, while demand for high-end items has softened. Despite the dip in luxury sales, Chow emphasized that the premium segment remains stable and sustainable.
Chow reported that same-store sales during the recent Labour Day Golden Week holiday were satisfactory, and expressed optimism about the retail outlook for the second half of the year. He cited the Hong Kong SAR government’s continued efforts to boost tourism as a key driver for upcoming sales events, including the National Day holiday.
On the issue of gold price volatility, Chow noted the challenges posed by global geopolitical tensions and evolving economic conditions, which make future pricing trends difficult to forecast. Nevertheless, the company has adopted hedging strategies to cushion its balance sheet against sharp fluctuations in gold prices.
Looking ahead, Chow Sang Sang plans to continue optimizing its retail footprint in mainland China. This includes shutting down underperforming stores and opening new outlets in premium, high-potential locations as part of its long-term growth strategy.
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