Chow Tai Fook lines up China growth
Hong Kong-based jeweller Chow Tai Fook plans to open an additional 500 stores in China within four years.
Chow Tai Fook currently has more than 1500 watch and jewellery outlets in 320 cities in China, Hong Kong and Macau. Its gold jewellery, which ranges from US$250 to US$12,880, accounts for 70 per cent of its total sales. Hong Kong, where the jeweller has 60 stores, makes up one third of its total sales.
Freestanding stores are planned to be installed in China’s large metropolitan cities as well as third- and fourth-tier cities.
“In Shanghai, if we can match our sales in Hong Kong, it would be a huge potential,” said Chow Tai Fook director of group branding Alan Chan.
He says the company’s positive outlook is influenced by the steadily growing demand for jewellery in China due to Chinese affinity for gold.
Meanwhile, Swatch Group CEO Nick Hayek said luxury goods sales slowed by 15 per cent as consumers opted for cheaper items. Research firm Frost & Sullivan expects a 35 per cent increase in gold jewellery demand in China this year due to increasing urbanisation and rising incomes.