Zhou Dafu Mainland Revenue Fell 5.3% Trapped Jewelry Wholesale Slowdown

< p > earnings analysis shows that the decline in sales in mainland China is mainly due to the weak consumption power of retail industry and the slowdown in wholesale business, especially jewellery jewelry.

In addition, the sales performance of the 2012 National Day holiday was worse than expected, and the sluggish economic performance in the 2013 fiscal year led to a decline in confidence of Zhou Dafu group's retail customers and franchisees.

In addition, the new changes in China's mainland policy may also lead to a conservative attitude towards consumers in the luxury goods market.

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In the fiscal year P, 2013, the total turnover of direct retail outlets in the mainland amounted to HK $24 billion 260 million, a slight increase compared to HK $23 billion 270 million in fiscal 2012, and the increase was mainly driven by the opening of new retail stores.

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< p > however, in the same year, Zhou Dafu group's sales in the same store in mainland China fell by 3%, while the figure increased by 32% in the 2012 fiscal year, mainly due to the higher base and sales decline last year.

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< p > nevertheless, Zhou Dafu expects that in the long run, the proportion of turnover from mainland China will increase.

It is mainly attributable to the continuous urbanization in all parts of the country. The per capita disposable income has risen, and the demand for precious commodities is increasing.

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< p > to match Zhou Dafu group's strategy of increasing market share, Zhou Dafu group opened 192 new jewellery retail outlets in mainland China in fiscal year 2013.

58.3% of the new jewelry retail outlets located in the mainland of China are located in three and second tier cities, indicating that the group has further penetrated into other suburban cities.

As of March 31st, the total number of jewelry retail outlets set up by Zhou Dafu group in mainland China increased to 1640, accounting for 94.1% of the total retail sales of jewelry from Zhou Dafu.

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< p > in addition, the group has opened 7 new watch retail outlets in mainland China.

As of March 31st, the total number of watch retail outlets in mainland China increased to 91, equivalent to 97.8% of the total retail sales of watches and clocks in China.

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< p > by March 31, 2013, Zhou Dafu group had 1209 direct retail outlets in mainland China, and maintained a ratio of 7:3 to franchised stores.

The number of counters set up in the department stores in mainland China accounts for 88.2% of the total retail outlets in mainland China.

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