Friday, March 29, 2024
 
Columnist
Martin Hennecke
 
EMPEROR WATCH&J
HKEx Stock Code : 00887 
 
Corporate Profile
Principally engaged in the sale of European¡Vmade luxurious and international branded watches, and self-designed fi&ne jewellery products under its own brand, ¡§Emperor¡¨.

Business Review - For the year ended December 31, 2012

Optimising Retail Network

The Group has an extensive network of retail outlets at prime locations in Hong Kong, Macau and the PRC. These include jewellery shops, multi-brand watch shops (with or without jewellery counters) as well as specialty outlets for specific watch brands.

The Group's retail stores in Hong Kong are strategically located at the major high-end shopping places, including Russell Street in Causeway Bay, Canton Road in Tsim Sha Tsui and Queen's Road Central in Central. In terms of shop rental rate per square feet during the Year, these three shopping streets were ranked as world-class top five most valuable shopping streets. Russell Street was even well recognized as the most valuable shopping street in the world. The Group enjoys a high penetration rate amongst the mainland visitors and brand enhancement through its presence in these extremely prime areas. With the lead of iconic flagship store located in 1881 Heritage, Canton Road, Tsim Sha Tsui, the Group is able to capture local shoppers as well as mainland visitors.

Solidifying Brand Image

The Group continued to effectively market and promote the brand through a range of joint promotions, sponsorships and exhibitions during the Year, all of which received positive results. To sustain its decades-old relationship with watch suppliers, the Group separately ran co-op advertising campaigns and organised joint promotion events with world-class watch suppliers to further foster the relationship and enhance the brand reputation for both leading watch brands and ¡§Emperor¡¨.

In the context of concurrent expansion of demand for luxury goods, the Group implemented various specified marketing and public relation campaigns to strengthen its advertising and marketing efforts on high income group. During the Year, the Group fully utilised the spacious area in Emperor Jewellery Flagship Store in 1881 Heritage and continuously hosted joint promotion events with investment banks, insurance companies, charity organisations and academic institutions in order to widen the customer base and strengthen a sense of signature on the flagship store.

Business Outlook - For the year ended December 31, 2012

Supported by the rising spending power and expansion of middle income group in the PRC, luxury consumption market in the region remains optimistic. Being a prominent retailer offering luxury watches and self-designed fine jewellery, the Group will seek to achieve a desired product and geographic mix in order to achieve a sustainable profit.

Hong Kong, as one of the hot-pick destinations for luxury goods consumption in the region, should be one of the most leveraged places against recovery in consumer sentiment. In addition to the significant regional price differential set by the watch brands, authenticity assurance, better assortments and absence of sales tax on luxury goods, Hong Kong is able to have a faster pace of recovery. The Group stays positive to capture the opportunities from the recovery, as more than 80% of its sales are originated from Hong Kong. The Group also believes that a better recovery sign will be revealed in 2013.

The Group believes that Southeast Asia will become a new revenue contributor. In early 2013, the Group has successfully expanded the coverage from Greater China to Southeast Asia by initiating a presence in Singapore. The Group will continue to look for other expansion opportunities in Southeast Asia in order to fully capture the luxury consumption growth momentum.

Source: Emperor Watch & J (00887) Annual Results Announcement
Chairman Cindy Yeung Issued Capital (shares) 6,882M
Par Value HKD 0.01 Market Capitalisation (HKD) 4,061M
 
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