HONG KONG: High-end wedding companies' profits are disappearing as fast as wedding cake, as soon-to-be-married couples are becoming more cautious about spending and as advertisers trim budgets amid economic turmoil.

However, Darizi, a cross-border wedding company, is optimistic about this auspicious "double-spring" wedding year, in which, according to the traditional Chinese lunar calendar, May comes twice in one year.

Given the grip of this tradition on the lucrative mainland market, this optimism may be well-founded.

"During this difficult time, couples cut their wedding budget. For example, they may have seen HK$30,000 to HK$40,000 for shooting photos before but now it is brought down to HK$20,000," said Andy Ann, CEO of Darizi, which has captured 40 percent of the local wedding market since its start in 2007. He also has noticed that Hong Kong consumers are more sensitive than mainlanders to market fluctuations and stock market performance.

The company's income dropped by 30 to 40 percent, compared with a year earlier, as advertisers, ever so sensitive to the economic situation, tightened spending on advertising.

The company, with over 60,000 registered clients-cum-members on its website, was established as a dot-com company and later expanded into traditional publication and event planning. It now runs a website as well as a conventional magazine and holds exhibitions to provide wedding information for grooms/brides-to-be.

With retreating income, Darizi, which literally means "the big day" in life, is nevertheless upbeat about the near future, as Ann believes "the peak season for tying the knot, in September through December, is yet to come"

Meanwhile, the company continues to eye the great potential of the mainland market and to focus their operations in the mainland with increasing inland staff.

The average wedding expenditure last year reached around 200,000 yuan for Shanghai newlyweds, similar to wedding outlays in Hong Kong, while demand for "dream weddings" in other upper-tier cities is growing rapidly. According to the research done by the company in 2008, couples in Beijing and Guangzhou spent 140,000 yuan and 80,000 yuan per wedding respectively.

"There is hefty demand and disposable income in China, as mainlanders are lavish in buying into good services with strong brand names. They cannot find qualified sellers on the mainland for high-end luxury, and so come to Hong Kong, for example, to buy gold. That's our opportunity, as we are vendors providing what they want for their dream wedding."

Profits for the entire Hong Kong wedding market amounted to HK$10 billion. Ann foresees not much growth in the fiercely competitive local market, but is confident about prospects in the mainland.

Darizi will increase the circulation of their namesake magazine from 50,000 to one 100,000, as they plan to unveil their high-end wedding concepts in affluent cities like Beijing, Shanghai, Dalian, Guangzhou and Chengdu.

"Mainlanders are becoming westernized. They yearn for something more luxurious, such as diamonds, five-star hotel and motorcades," Ann mused, looking forward to Darizi's moves into a mainland market that he hopes will be a piece of cake to penetrate.

(HK Edition 08/15/2009 page2)