Jewelry Leading Company Layout Strategy Differentiation

The growth gap between Hong Kong and Macau and Mainland China has made Zhou Shengsheng firmly determined to continue to lay the mainland market.

At present, Zhou Shengsheng has more than 330 branches in more than 90 cities in the mainland.

Zhou Yongcheng, chairman and general manager of Zhou Shengsheng, said that the company will maintain its annual plans to open 50 branches in the mainland. First of all, it should consider strengthening the business of existing cities, and then developing new cities.

Compared with the Zhou Dafu chain store's shrinkage plan, the reporter learned that although the industry growth slowed down in 2015, it affected the growth rate of some leading enterprises, but Lao Fengxiang, Zhou Shengsheng and other enterprises continued to lay down the chain stores below the line.

Wang Ensheng, a spokesman for Lao Fengxiang, told reporters that it did not slow down the pace of opening stores this year. It was growing at the rate of 150 physical stores every year. The number of shops has increased from more than 2800 at the end of last year to more than 3000 now.

This year, 2 entity stores have been opened in Hongkong, and their performance is good. In December, third entities will continue to open in Hongkong.

"The overall growth rate of gold and jewelry industry is slowing down.

"The overall macroeconomic environment and other factors," but Wang Ensheng said, "although it also affects the growth of old Feng Xiang, but our growth is still higher than peers.

The price of raw materials this year dropped by 20% compared with last year, but both total sales and sales increased over last year.

Speaking of exceeding the average performance of the industry, he believes that the layout of the whole industry chain is mainly old Feng Xiang, while the product structure has been extensively adjusted. "At present, there are 12 categories, Hongbao, Blaupunkt and jadeite, which are popular this year. Prices are rising more and sales performance is good."

For the two leading jewellery enterprises in different performance and store layout development strategies, a jewelry industry insider told reporters: "now Zhou Dafu and Lao Fengxiang have more than 2000 and more than 3000 stores, all are expanding to low level cities. At that time, Zhou Dafu of Hongkong gene may encounter many other international consumer goods companies." after all, Lao Fengxiang has ploughed the mainland market for many years, and will further understand consumer's understanding, product design preferences, marketing methods and so on.

Another Hongkong jewellery company, Zhou Shengsheng, closed 10 stores in the mainland market in the first half of this year, mainly because of its unsatisfactory business performance and the opening of 21 stores during the same period.

Its semi annual report in 2015 showed that turnover fell 1% to 9 billion 245 million yuan in the first half of the year, and jewelry retail contributed 88% of the total turnover, operating profit of 561 million yuan, representing a decrease of 12% compared with the same period last year.

Among them,

And Macao jewelry sales fell 10%, same store sales fell 12%, store rents increased 18%.

The total turnover in mainland China increased by 11% to 3 billion 944 million yuan, while the same store sales increased by 5%.

The growth is over 70%.

In fact, if you go to the low level cities in mainland China, you will see many jewelry stores in counties and cities spread all over the place. There are regional surplus in the industry channel entities, so that the survival of the fittest phenomenon, of course, enterprises are continuing to expand at high speed, they are also full of confidence in the industry, and can find the blank and growth point of the market, which is related to the enterprise's strategy and market sensitivity.

Shi Hongyue said.

In his view, "China's jewelry market is changing rapidly. For example, some popular jewellery varieties in the past few years are now slowing down. In recent years, Choi Po, jadeite and other varieties have been well received. For example, new technologies such as smart jewellery, wearable devices and other new technologies will enter the field of industry or bring new patterns and opportunities. Enterprises should respond to different market adjustment speed, which will also affect their performance."