Analysis | Hong Kong jewellers poised for joy as Chinese big spenders return
The return of mainland shoppers helped Emperor Watch eke out a second-half profit, reversing several quarters of losses. This time, these big spenders are shopping for themselves instead of giving away gifts.
Hong Kong’s luxury jewellery and watch retailers are bracing for a recovery, as mainland China’s nouveau riche flock back to the city to splurge on glittering Swiss timepieces and opulent platinum necklaces, but this time for themselves rather than gift-giving.
The resumption of spending helped return tycoon Albert Yeung Sau-shing’s Emperor Watch & Jewellery to eke out a second-half net profit of HK$3.8 million (US$490,000), reversing several quarters of losses.
“There are mounting signs of a recovery in our watch sales, and we noticed a pickup in demand from mainland shoppers over the latest two quarters,” the company’s chief executive Cindy Yeung, who is a daughter of Albert Yeung, said on Friday.
China’s breakneck economic growth over the last four decades has seen mainland tourists become the biggest group of patrons of Rolex and Patek Philippe watches at Hong Kong’s lavish jewellery shops.
As Chinese big spenders shied away, foot traffic dwindled and retailers’ revenues slumped – often by double digits. The downturn in Hong Kong dealt a blow to Geneva, prompting Richemont, the conglomerate that produces Piaget and IWC timepieces, to slash hundreds of watchmaking jobs in Switzerland over the past two years.
