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Tag: metrics

  • Luk Fook Holdings Posts Double-digit Growth In Q2, Eyes Expansion In Mainland China

    Luk Fook Holdings Posts Double-digit Growth In Q2, Eyes Expansion In Mainland China

    In the second quarter ending September 30, Luk Fook Holdings, a prominent jewelry group, has revealed impressive double-digit growth in several critical indicators.

    Retail Sales Value on the Rise

    The group recorded an 18% year-on-year increase in Retail Sales Value (RSV) during the quarter. RSV, which encompasses self-operated shops, licensed outlets, and e-commerce ventures, saw a significant upturn.

    Retail revenue, made up of earnings from self-operated stores and e-commerce businesses, escalated by 15%. Concurrently, the group also experienced a 10% rise in same-store sales. The management attributed this robust growth, which surpassed the first quarter’s figures, partly to the low base during the same period the previous year.

    Regional Sales Growth

    In the Hong Kong, Macau, and overseas markets, the group noted a 13% increase in both RSV and retail revenues. Same-store sales grew by 13% in Hong Kong, 15% in Macau, and 13% in overseas markets.

    In Mainland China, the RSV surged by 20%, and retailing revenues swelled by 23%. The increment in same-store sales at company-operated locations was a modest 3%, while licensed shops saw a leap of 27%. Licensed stores constitute approximately 93% of the group’s total shop count in Mainland China.

    Performance by Category

    RSV’s growth varied across different categories. The value rose by 78% for gold and platinum products, increased by 16% for fixed-price gold items, and crept up by 3% for diamonds.

    As of September 30, the group had 3113 shops worldwide. There was a net reduction of 49 shops in the second quarter.

    Future Prospects

    The group maintains a cautiously optimistic outlook on its medium- and long-term business opportunities in Mainland China and plans to continue expanding in the market when the timing is right.

    Despite the ongoing US tariff policies affecting the global economy and the escalating China-US tensions, the Mainland government has implemented a “dual circulation” strategic layout to stimulate domestic demand, as observed by the retailer.

    Questions & Answers

    What was the percentage increase in Luk Fook Holdings’ Retail Sales Value (RSV) in Q2?
    It saw an 18% year-on-year increase in RSV during Q2.

    What contributed to the robust growth Luk Fook Holdings experienced in Q2?
    The growth can be attributed to the low base during the same period the previous year and the increase in both RSV and retail revenues in several markets.

    What is Luk Fook Holdings’ future plan for expansion in Mainland China?
    The group plans to continue expanding in the Mainland China market when the timing is appropriate, with a cautiously optimistic outlook on its medium- and long-term business opportunities.

  • Performance remains key metric in Thailand

    Performance remains key metric in Thailand

    Performance ratings continue to determine pay decisions in the majority of Thai organisations, a recent Aon Hewitt survey found.

    With high turnover rates highest among junior managers and supervisors in the Land of Smiles, there is growing pressure on these staff to maintain their performance levels and prove their worth.

    According to the Total Compensation Measurement Study and Benefit Survey 2016 by Aon Hewitt, performance continues to determine pay-related decisions for 95.1% of organisations in Thailand.

    With junior management and supervisor levels recording voluntary turnover rates of 14%, and involuntary turnover rates of 5.3%, one tactic being utilised is to offer wage increases, with salary increments ranging from 4.7% to 6% in 2016 across industries polled.

    Across the Thai economy, the retail and life sciences sectors offered the most generous wage increase in 2016, with an average increment of 6%.

    On the other hand, the travel industry witnessed the lowest average salary increase, at 4.7%.

    The study also showed that other strategies were used to keep hold of employees.

    For example, 72.2% of employers offered individual performance awards, while 38.9% offered special recognition as short-term incentives to retain staff.

    “The high turnover rate among junior managers should warn employers in Thailand to think about their compensation policies in the context of their overall talent retention strategy,” said Panuwat Benrohman, Country Leader, Aon Hewitt, Thailand.

    Panuwat cautioned that companies have a responsibility to arm junior managers with the skillsets necessary to make the step up from individual contributor roles.

    “With ‘better external opportunities’ and ‘limited growth opportunity’ among the top three reasons for attrition, a focus on learning and development will help employers in Thailand build a strong leadership pipeline from within, while still compensating high performers attractively,” he added.

    A total of 174 organisations across all key industries in Thailand participated in the survey.