Diamond World (DW) May - June 2020

SPECIAL REPORT
sales in the first three weeks narrowed to
around 60 percent, while overall shops in
the mainland market showed progressive
improvements with a less than 20-percent
decline in June as compared to the
20-per-cent drop in April to May and
40-per-cent drop in March. The retailer
will close five stores in Hong Kong and
open two in Macau.
Tse Sui Luen (TSL) reported HKD
89.8 million ($11.6 million) loss for the
12 months ending March 2020. The
company stated that it has been one
of the most difficult years, citing the
backdrop of US-China trade war as one
of the major reasons for a steady decline
in sales. Before the onslaught of the
novel coronavirus and the protests, TSL
opened four stores in HK. However,
with the crisis at hand, the company has
realigned its business strategy and cost
effectiveness remains a key priority.
Many retailers have negotiated with
their landlords – their rents have been
significantly cut to tide through the
current period. “For most retailers
around the world, things are looking bad
and Hong Kong is no different. When
we ask for payments they want to return
the goods. But we are cooperating with
them. We are being patient and extending
the credit by six months. I do believe
that nothing will change before second
quarter of 2021. So, if retailers don’t get
support from suppliers and owners of the
place they are renting, they won’t be able
to survive,” says Nigam.
Primed for innovation
When the going gets tough, the tough gets
going. Hong Kong has been a centre for
gems and jewellery for many years and
businesses have gotten complacent – a
Ring, Oriental Gemco
The Government
has given subsidies
and salary packages
to support the
employees. They
have given $9000
to each employee
in Hong Kong
every month, this
will continue for
6 months. India
opening up is
crucial as it is the
hub of sourcing.
There will be major
issues if India
doesn’t open up as
supply chain will
get affected
Zulu Ghevriya,
Prism Group
DiamonD WorlD | may-june 2020 | 91