Tse Sui Luen Jewellery (International) Ltd. (00417.HK) says it will be promoting its products on the online shopping channel of Hong Kong Television Network Ltd. (HKTV) (01137.HK).
Lambert Chan, deputy chief executive, commercial, at TSL Jewellery, said the company aims to cover major online platforms in the coming two months, including instant messaging app WeChat and the online shopping channel of HKTV, which will be launched on Nov. 19.
“We see HKTV as a good business partner … our clients do not overlap very much,” Chan said during the company’s interim results announcement.
“We want to reach new audiences via the new channel, the young and educated ones, so as to increase our penetration in the market,” he said.
The company said its net profit fell 45.7 percent to HK$25.8 million for the six months to August. Consolidated sales declined 14.6 percent to HK$1.82 billion.
Chan said the results looked lackluster because of the profit surge in the same period last year. Gold price dropped suddenly and resulted in a gold rush in April last year.
The company also experienced generally weaker demand from mainland visitors. The slowing demand for higher-priced gift items has been compensated by a gradual growth in sales of products for self use.
Overall sales have dropped 10 percent since the Occupy protest movement started.
Chan said its outlets were temporarily closed in the first two days after the protest broke out, but they reopened after store managers saw that the street occupations were largely peaceful.
“Sales in the protest-hit areas of Causeway Bay and Mong Kok drop by 20-30 percent. But many visitors go to other outlets such as those along the railway stations in Sha Tin, Tuen Mun and Yuen Long,” Chan said. “We see quite a good sales growth in those stores.”
Sales growth in residential areas has also slowed as buying appetite has been affected by the protest.
The jewelry chain plans to add two new stores in Mong Kok East and Causeway Bay in the coming year.
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