Double-digit online growth helped Hong Kong-listed jeweller Tse Sui Luen achieve a modest 4.5 per cent increase in sales last year, despite the disruption of Covid across all its markets.
More importantly, the company achieved a significant bottom-line improvement, recording a profit attributable to shareholders of US$1.89 million, compared with a loss of $5.6 million the preceding year. Sales reached $353 million, with online turnover exceeding $49 million.
Chairman Annie Yau said Covid had caused “unprecedented challenges” to its Hong Kong business operations due to multiple measures to contain the spread of the pandemic, including the long-term closure of the border with the mainland.
But the company had responded with a focus on building its brands, managing customer experience and adopting new technology ready for the post-pandemic trading environment and new generational trends. These include an online and offline Made-To-Order service enabling customisation of products and the launch of a new brand in “Nordic minimalist style” called Duo by TSL late last year.
The company negotiated “relentlessly” with landlords to reduce leasing costs and closed two underperforming stores in Mong Kok and Tsim Sha Tsui, leaving the brand with 24 in Hong Kong and three in Macau as at March 31
In Mainland China, Tse Sui Luen targeted younger generations, launching a brand ‘TSL Tosi’ with a new product portfolio tapping into the youth market. “The brand tagline of TSL Tosi is ‘Embrace the True You’ advocating minimalism, presenting the notion that jewellery is not only worn on special occasions but also a part of customers’ daily wardrobe,” said Yau.
The first TSL Tosi concept store was opened in Suzhou in September last year, followed by two more in Guangzhou and the company’s store count including both self-operated and franchised shops on the mainland rose by 15 to 465.
In Malaysia, Tse Sui Luen achieved a double-digit increase in sales, buoyed by post-Covid pent-up purchasing demand by consumers.
The group’s online business enjoyed what Yau described as a “continuous and impressive high double-digit growth in turnover” during the year thanks to improved sales attributable to a broader product range and seasonal promotions.
“Despite the fact that major marketplaces in Mainland China remain as our key online business contributors, we never hold back from investing in our official e-shops for long-term development,” she said.
A TSL e-shop opened on Tmall Hong Kong during the year, and a major revamp of the company’s own online sales site is in planning.
Yau said the outlook for the global and local economies remains uncertain given challenges arising from the ongoing China-US trade conflict, political tensions fuelled by the Russia-Ukraine war, drastic changes in the business environment and elevated inflation concerns, along with a potential new wave of Covid.
