Chow Tai Fook to boost US business

Hong Kong-headquartered jeweller Chow Tai Fook plans to ramp up its US business to offset falling sales in China.

The company has revealed plans to boost sales of diamonds to US retailers, operating through a new wholesale subsidiary.

According to Bloomberg news service, a team has already been established to conduct feasibility studies.

In 2014, Chow Tai Fook paid US$150 million to purchase US jewellery brand Hearts on Fire which sells cut diamonds to franchises retailers. That brand is now being progressively introduced in Mainland China. However the new business will sell polished and rough diamonds to other retailers.

MD Kent Wong told Bloomberg the US appealed because it is the single largest international market for diamonds.

”It contributes to 40 per cent of diamonds sales.”

Wong says wholesaling will enable Chow Tai Fook to test the market before launching a brand of its own.

“We will seek to partner with local retailers who know the market well.”

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