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Peggy Sito

Jewellery manufacturer Hang Fung Gold Technology is stepping up its retail business with an eye toward tapping the growing affluence of middle-class mainland consumers.

The locally listed jeweller opened a third retail outlet yesterday in Hunghom. The 8,000-sq ft outlet will sell Hang Fung's gold, jewellery, gem stones and gold watches.

'We have noticed that jewellery and gold buyers are the same group of consumers who fancy upmarket watches,' president Kathy Ng said. 'Therefore, we have decided to expand our watch business.'

Ms Ng said Hang Fung had lined up a partner from Switzerland, which supplies finished watches to the company. Hang Fung is in charge of promoting the brand.

Total investment in the new store came to HK$30 million, which included marketing fees and the purchase of the Hunghom premises.

Profit margins for watches were slightly higher than jewellery and gold, reaching just over 40 per cent, Ms Ng said.

Chairman Lam Sai-wing said the company's retail outlets had attracted more than 30,000 visitors during the Christmas and New Year holiday sales period.

With a growing number of visitors coming to Hong Kong - especially as the government plans to relax visa rules for mainlanders -  Hang Fung hoped to benefit from rising tourist arrivals with the third retail outlet, Mr Lam said.

The company's mega jewellery outlets in the Hunghom industrial zone are major tourist attractions for mainland visitors -  Hang Fung's key customers.

At present, mainland tourists account for about 70 per cent of its business. They on average spend roughly HK$2,500 each - the highest of any nationality.

Mr Lam said Hang Fung expected the store would draw more than 10,000 local and overseas visitors per month.

More than 100 tours have registered to visit its outlets during the Lunar New Year holidays this week, but he expected the actual number would be greater.

More than 300,000 tourists are expected to visit Hong Kong during the holidays, of which more than 200,000 are expected to be mainlanders, according to the industry's earlier forecasts.

Apart from Hong Kong, Hang Fung has a presence on the mainland with more than 50 points of sales in the country's major cities.



Hang Fung opens new jewellery retail outlet