Procurement plans to open 30 watch shops in the Mainland to ban 400 million purchase of retail network in the Mainland

The profit rate of Yili Li (0304) retail sales of Mainland watch watches was as high as 10%. Chairman Zhou Zhanhuang said that the relevant business will become the focus of future development. It is expected that the Group's turnover will account for 10% of the Group's turnover in FY07 and increase to 20% in FY08. The Group will invest 600 million yuan to open 30 Tourneau jewellery and watch stores in 3 to 5 years.

Zhou Zhanhuang said after the opening ceremony of his flagship store in Shanghai, Tourneau, he plans to open two and one Tourneau stores in Beijing and Macau respectively this year. In addition to Tourneau, the Group currently has 10 watch shops and will open another 2 to 3 rooms this year. It is expected that the number will increase to 20 in FY07 and the investment per store will be approximately 8 to 10 million yuan. In addition, this year it will have the opportunity to complete the acquisition of a retail watch network in the Mainland, amounting to approximately RMB 340 million.

Shanghai Open Tourneau Flagship Store

Liang Yi, Chief Executive Officer of Yiyi Li, said that he was optimistic about the prospects of the mainland watch market, mainly the amount of imported Swiss watches in the Mainland in recent years, with an annual increase of 30%, reflecting the strong demand in the Mainland. At the same time, the rents of shops in the Mainland are much lower than those in Hong Kong, and the profitability is greater than that in Hong Kong. He took the Tourneau Shanghai flagship store as an example. The store had over ten thousand feet and the lease was for five years. However, the monthly rent was less than RMB 250,000, which was only 1/10 of that in Causeway Bay. The rent accounted for only 5%-8% of sales. , well below Hong Kong.

Proposed 400 million purchase of retail network in the Mainland

Tourneau’s flagship store in Shanghai has an annual turnover of more than RMB 60 million. Currently, the gross profit margins for the Prosperous Mid-Price List and the Watch List are over 50% and 30%, respectively. The Group's gross profit rate for the Group rose to 55% and 35% respectively in the year of 2007, and the gross profit margin of the List has a chance to rise to 38%. In terms of amount, it is expected that the sales of the mid-price list for the year 2007 will increase from 600 million yuan to 1 billion yuan, while the list will increase from 26 million yuan to 400 million yuan.

Tourneau shop club

Yijinli opened its flagship store Tourneau yesterday in Shanghai. The store is located in Xintiandi, Shanghai's Wang District. It is a three-storey building with an area of ​​over 10,000 feet. Yi Liang, Chief Executive Officer of Liang Yi, stressed that the store not only sells watches, but also establishes a club for use by regular customers.

The clubhouse is located on the third floor and includes a watch library, bar, cigar library, karaoke room, etc. It also invites watch experts from time to time to teach buyers how to preserve value and watch culture.

There are watchmakers like Zan Yi who are profitable enough to make money. Although they will not make money, they will all be buried together. You will tell yourself that you only watch and you will also look at other people's watch points. Naturally, there will be comparisons. Over time, everyone’s interest in the watch will only increase, which will greatly help the sales of the watch.