Improving fundamentals lift jewellery sales
Hong Kong and China saw continued growth in jewellery sales from January to May this year, thanks to improved tourism and consumption sentiment, latest government data revealed.
Jewellery, watches, clocks and valuable gifts recorded a 76.6 per cent year-on-year increase to HK$24.8 billion (approximately US$3.17 billion) in the first five months of 2023, according to the Hong Kong Census and Statistics Department. May figures alone were up 51.8 per cent compared to the same month in 2022.
Jewellery sales in China are also improving. Gold, silver and jewellery sales rose 19.5 per cent to RMB142.6 billion (around US$18.2 billion) during the period in review while sales in May increased 24.4 per cent, according to the National Bureau of Statistics of China.
Both Hong Kong and China saw total January-May retail sales grow by 21 per cent and 9.3 per cent, respectively.
Meanwhile, Hong Kong retailer Chow Tai Fook Jewellery Group reported stronger first fiscal quarter sales on the back of improved mobility and retail activity across key regions after pandemic restrictions were lifted.
The group’s retail sales value (RSV) was up 29.4 per cent, with RSV in China rising by 25.2 per cent and Hong Kong and Macau’s increasing by 64 per cent.
Chow Tai Fook also revealed better same-store sales in China, with an 8.5 per cent growth. Hong Kong and Macau meanwhile saw a 64.9 per cent and 62.1 per cent improvement, respectively.
According to the mainland Chinese government, the consumer market sustained its recovery in May, with rising demand for high-value goods, adding that local buyers’ spending power and confidence could further strengthen through consumption promotion policies.
Hong Kong, for its part, is counting on enhanced labour market conditions, disbursement of the second instalment of consumption vouchers, and government- and industry-led promotional efforts to boost local consumption.