PETALING JAYA: Gold jeweller and retailer Poh Kong Holdings Bhd is expected to deliver a better performance in the financial year ending July 31, 2022 (FY22) due to stronger demand for gold and precious jewellery this year.
Head of corporate affairs, human resource and administration Margaret Hon said sales are expected to increase on the back of strong demand for gold and jewellery since weddings, functions, and commemorative events are allowed.
“The management does not expect retail sales to lag in recovery as Poh Kong is associated with two strong characteristics, strength and resilience, with the right people and products. Riding on these characteristics, a better performance is expected on the back of strong demand for both gold jewellery and gold investment.
“Prudent management, product excellence, and customer-oriented strategy will help Poh Kong build on its achievement. In September 2021, we managed to maintain our year-on-year sales and enjoyed an increase of 70% sales from October 2021 until today,“ she told reporters during a virtual press conference after the group’s AGM today.
Marketing manager Elizabeth Choon said its online sales increased 157% in 2021 compared to the corresponding period in the previous year, especially during the movement control order (MCO).
“When retail stores were closed our sales picked up a lot online. When we started our business in 2011, our strategy was to provide convenience to our customers, but the trend has changed, we are applying an omnichannel business strategy.
“When the physical stores were closed many customers switched to online shopping. After retail stores reopened, we saw a slight drop in the online sales but still, it did better than the previous year. We are expanding online and will launch an online shopping platform in Q1’22. Besides, we are on the lookout for more potential online marketplaces. Meanwhile, we are well-prepared for future MCO, if any,“ she said.
The group is revising its online strategies by putting more trending products in social media on e-commerce platforms such as Lazada, Shopee, Superbuy, and Vettons. Elizabeth said the group has been expanding its range of products available on e-commerce platforms since the recent lockdown.
“Previously, we launched new products in retail shops first before making them available online. During the recent lockdown, we launched the mini-ring products online, which was a popular product on e-commerce platforms. We analyse the data from these platforms and consumers’ preferences and then share it with our retail outlets. When the shops re-open they will share the popular range with customers,“ she said.
On its mobile app Jeweland launched two years ago, Elizabeth said more than 150,000 customers have signed up for this app and over 60% of its transactions came from its members.
Poh Kong executive chairman and group managing director Datuk Choon Yee Seiong said the corporation had mapped out a clear strategy to meet future challenges.
“We are on track for strong but predictably uneven growth. The group is poised to stage a robust post-recession recovery. In addition, we need to plan on an incremental basis, rather than holding a long-term view due to the extrapolations of present economic and financial trends.”
On gold prices, executive director Ermin Siow Der Ming said the gold price would hover around US$2,000 (RM8,340) per ounce this year, while business development manager Edison Choon said the average price for 916 gold in 2021 was between RM265 and RM290 per gram.
