93
traffi c” in One Central and says his com- pany is trying to change this. Even so, one advantage to the way things are now is that there are fewer window-shop- pers. “For every two people that walk through the door, one is spending. That’s a 50 percent conversion rate, which is pretty high,” he says. This is why shops in One Central are performing accord- ing to plan or “maybe slightly better,” Mr Martin says. One Central focuses on luxury how-
ever, Mr Martin admits that Macau resi- dents “would like to see a really good mid-market” shopping centre, which would mean an opportunity for potential investors. Mr Martin is not afraid of more
competition. He says there is still room for at least one more luxury shopping mall
in Macau because each develop-
ment in Cotai is self-contained and the number of hotel rooms helps make the market sustainable.
Wynning bet Wynn Macau is another satisfi ed inves- tor in luxury retailing. In a written re- ply to enquiries by Macau Business, the company said that its second quarter fi gures show retail revenue was up 75.5 percent. This was “in part as a result of the addition of several new retail outlets in Encore at Wynn Macau,” the state- ment said. “It is true that some of our stores
are among the best-selling stores in the world, although we cannot disclose ex- act details. In general, all of our stores have been very successful, and we are very pleased with their performance. “Demand for the exclusive fashion
labels at Wynn Macau is so high that there are often queues outside the shops - regardless of whether it’s day or night.” Most customers come from the
mainland and Hong Kong but there are also customers from Japan, Korea, the United States, Canada and Australia. “Our plan is to attract the most the distinc-
discerning clientele with
tive luxury brands and the specialised offerings to meet their needs,” Wynn Macau says. “The high-end visitor has high
expectations, is very mobile, and has travelled widely. This new high-energy group,
including upper-middle-class
guests from China, is bristling with curiosity and for this we have a strong luxury retail strategy.”
Tourists believe in the quality of Macau jewellery and the head of the Macau Goldsmiths’ Guild believes in an even brighter future for the business, since “Asian people, especially Chinese people, like gold”
Lei Chi Fong (right) and his son (left)
PRECIOUS METAL I
n the city centre, there are jewellery shops everywhere. For the shops
lining Avenida Infante D. Henrique and Avenida Almeida Ribeiro, more commonly known by its Cantonese name San Ma Lou, this year is expected to bring a double-digit increase in revenue. But not all that glitters is gold. The president of the Macau
Goldsmith’s Guild, Lei Chi Fong, told Macau Business that while “business is going a little bit up” compared to last year, “profi t is going slightly down”. The main reason is the rise in
the price of gold, which has reached record highs in international markets. Around 70 percent of the items sold in local jewellery shops are gold and profi t margins are not following the increase in wholesale prices. Gold’s appreciation does not seem
to scare Mr Lei, who is optimistic about the future of the trade. He sees the arrival of famous international brands in Macau as an advantage for local retailers. Sales depend on what the customer wants but he says his sector is growing and retailers
are learning from the international experience of their challengers. There are exceptions. “Small
shops in narrow streets may be a little bit affected,” he says. Even so, he argues that their costs are lower and the customers are different, and they manage to survive. But is there really room in the
market for all these jewellery shops? Apparently, the answer is yes. Mr Lei, who is also a member of the
Guangdong provincial committee of the Chinese People’s Political Consultative Conference, points out that there are not only more and more mainland tourists coming to Macau but they are also wealthier than ever before. They are “very happy to spend their
money in Macau and Hong Kong”, he says. “They believe in our laws, in our commitment. They know we’re fair”. Tourists believe in the quality
of Macau jewellery and the head of the Macau Goldsmiths’ Guild believes in an even brighter future for the business, since “Asian people, especially Chinese people, like gold”. The guild represents 68 jewellery
shops, not including pawnshops. Its history goes back more than 80 years. For Mr Lei, jewellery is a passion
that he hopes future generations of his family will retain. He is following in the footsteps of his father and now his son, a graduate gemmologist working for family fi rm Seng Fung Jewellery, is doing the same. Mr Lei’s grandson is still a baby
but his hopes are high. “It’s a matter of DNA,” he says.
OCTOBER 2010
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