Related News
Gold wholesaler dives into retail
SHENZHEN Yihua Jewelry will double its number of retail outlets in China by the end of 2010 as the major jewelry wholesaler spearheads into retail in the aftermath of the financial crisis.
Yihua, China's first gold jewelry wholesaler, teamed up with Shanghai Lao Miao Jewelry Co and Hong Kong's Lukfook Jewelry, to tiptoe into China's retail jewelry market.
"The financial crisis squeezed wholesaler's already-low profit margins, pushing us to foray into the retail business," said Tom Xie, director and president of Shenzhen Yihua Jewelry Co today.
Wholesale profit margins are less than 10 percent, while retailers have much higher margins, Xie said.
Yihua started building up its retail chain last year and has set up almost 70 outlets in China.
The company will double its retail outlets in China in one year by adding franchises in the Yangtze River Delta, Beijing and the Pearl River Delta.
Yihua is a long-term supplier for Lao Miao, Shanghai Laofengxiang, and other major retail jewelers. It made about 8 billion yuan in revenue from wholesale sales to mainland jewelers and about 1.5 billion yuan on exports to Hong Kong jewelers.
Shenzhen and Gongguan in southern Guangdong Province is home to the majority of China's gold jewelry wholesalers.
Many famous retailers outsourced their jewelry processing business to wholesalers in Guangdong.
Yihua, China's first gold jewelry wholesaler, teamed up with Shanghai Lao Miao Jewelry Co and Hong Kong's Lukfook Jewelry, to tiptoe into China's retail jewelry market.
"The financial crisis squeezed wholesaler's already-low profit margins, pushing us to foray into the retail business," said Tom Xie, director and president of Shenzhen Yihua Jewelry Co today.
Wholesale profit margins are less than 10 percent, while retailers have much higher margins, Xie said.
Yihua started building up its retail chain last year and has set up almost 70 outlets in China.
The company will double its retail outlets in China in one year by adding franchises in the Yangtze River Delta, Beijing and the Pearl River Delta.
Yihua is a long-term supplier for Lao Miao, Shanghai Laofengxiang, and other major retail jewelers. It made about 8 billion yuan in revenue from wholesale sales to mainland jewelers and about 1.5 billion yuan on exports to Hong Kong jewelers.
Shenzhen and Gongguan in southern Guangdong Province is home to the majority of China's gold jewelry wholesalers.
Many famous retailers outsourced their jewelry processing business to wholesalers in Guangdong.
- About Us
- |
- Terms of Use
- |
-
RSS
- |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证:沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证:31120180004
- |
- 网络视听许可证:0909346
- |
- 广播电视节目制作许可证:沪字第354号
- |
- 增值电信业务经营许可证:沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.