Chinese watch retail and wholesale group Hengdeli Holdings has reported that its profits soared 47% in 2011.
Total sales were up 38.5% to ¥11.38 billion (£1.13bn) for the year to December 31, while retail sales soared 34.7% to ¥8.59 billion (£856m).
During the year Hengdeli said that it focused on middle- to high-end brands in mainland China and Taiwan, and on high-end brands in Hong Kong and Macau.
Hengdeli opened 55 stores in 2011 taking its total to 405 retail outlets.
Hengdeli chairman and chief executive Zhang Yuping said: “Adhering to the principle of ‘Be strong and be big, stable yet progressive’ in 2011, the group adopted a cautious and aggressive approach to develop retail as its core business, supplemented by other businesses such as customer services, auxiliary business and brand distribution business. The group expanded its retail network in line with market trends and focused on strengthening the management of existing retail outlets, enhancing the quality of retail outlets adjusting the brand portfolio, optimising inventory composition and effectively controlling costs to achieve a steady business growth.”
In 2011 Hengdeli said that it focused on improving cooperation between its customer services and maintenance and brand suppliers. During the period the brand set up a Green Channel for brands from the Swatch Group such as Tissot and Hamilton. It also entered into service dealership agreements with several brands including Swiss Fortune Concept and Deluxe.
At the same time, the manufacturing of extension products, which are closely related to watches, was also under vertical development. In addition to the existing business with various brands, the group also further partnered with brands including Hamilton. Apart from the core product types such as standard packaging and display windows, Hengdeli also diversified its display products and brand sales ancillary products.
Looking to the future, Zhang said that he expects to face economic challenges in 2012 but regardless of this is bullish about prospects for the Chinese watch market.
He added: “The group will continue to adhere to its strategy of maintaining a foothold in Mainland China while striving in the Greater China region such as Hong Kong. The group will keep abreast of market trends and develop its businesses in a prudent yet proactive manner so as to enhance its leading position in the internationally renowned brand watch retail sector and coordinate the development of the retail of other middle- to high-end consumer goods such as jewellery, maximizing returns for the shareholders, staff and the society.”