onsumer spending in China. Its effort includes shrinking its massive retail network, upgrading stores, launching new formats and flagship locations, accelerating overseas expansion and shifting more of its portfolio toward higher-margin, fixed-price jewellery. “Since we’ve done this and launched this brand transformation journey, we’ve acquired a new generation of customers … We’ve gotten great feedback about our new store experience, as you can see from the sales before and after, it has been a huge uplift,” said Sonia Cheng, vice-chairman and executive director. Cheng, whose great-grandfather founded the family’s first gold shop in the southern Chinese city of Guangzhou, said early indicators are positive. Operating margins are at five-year highs and fixed-price jewellery is taking a growing share of revenue compared with the lower-margin gold-by-weight sales that it has traditionally depended on. For the fiscal third quarter that ended in December, its retail sales rose 17.8 per cent from a year earlier. The changes come as the company, which has a market value of about US$18 billion, shrinks its footprint. From a peak of more than 7400 stores in 2024, the network fell to 5813 by end-2025. But same-store sales in mainland China – which accounts for roughly 85 per cent of revenue – were up more than 20 per cent in the December quarter. “It has been crucial to reinvent the business to remain relevant and retain its high-end clientele,” said Lina Yan, a consumer analyst for Hong Kong and mainland China at HSBC. “The company has already seen positive results, with sales stabilising and (retail sales) returning to growth.” A balancing act complicated by soaring gold prices Chow Tai Fook’s challenge will be to modernise its brand to appeal to younger and more luxury-oriented shoppers without losing its gold-buying consumers – all while facing subdued discretionary spending in China and intensifying competition. Gold’s relentless rally has made that balancing act harder. Prices are at around $5000 an ounce, helping drive some consumers toward gold jewellery as an investment alternative while pushing others out of the market. Chow Tai Fook raised prices on gold products three times in 2025 and another increase is under consideration, a company spokesperson said. “It’s a fine line,” said Jonathan Yan, a Shanghai-based partner at consultancy Roland Berger. “When prices rise, people may keep buying, but at a certain point, it becomes prohibitive.” Cheng said the company’s mix of weight-based and fixed-price gold gives it more room to manoeuvre. “This gives us resilience and flexibility when we look at the changing gold price environment,” she said. A product strategy offering something for everyone A key element of the brand’s reboot is a push into both the higher and lower ends of the market. At the top, the company launched its first high jewellery collection last year. Prices are not disclosed but are likely in line with competitors like Cartier, Van Cleef & Arpels and LVMH-owned Tiffany, whose pieces can run from hundreds of thousands to tens of millions of yuan. The move can be seen, in part, as defensive. Local upstart Laopu Gold has gained ground among affluent shoppers drawn to traditional Chinese aesthetics. Offering an even higher-end line gives Chow Tai Fook a counterweight while tapping the growing appetite among wealthy Chinese for domestic luxury brands. According to Cheng, high-end jewellery and fixed-price collections also help reduce the company’s dependence on commodity-linked gold-by-weight sales. At the same time, she said, demand for rare, unique pieces remains resilient despite China’s slowdown. “There is a resilience in the luxury segment and high jewellery segment, people are looking for rare pieces, one-of-a-kind pieces,” Cheng said, adding that in the past, wealthy Chinese shoppers only had international luxury brands to choose from. At the entry level, the company is rolling out lower-priced lines geared toward younger buyers. Recent releases include horse-themed gold bag charms for Lunar New Year – the Year of the Horse – and a HK$480 ‘blind box’ collaboration with Disney. Partnerships with the NBA and video game Black Myth: Wukong target similar demographics. Cheng rejected the idea that courting younger consumers risks alienating traditional buyers. “I actually don’t think the young generation is always chasing for what’s new and what’s hot,” she said. “They actually really treasure this emotional value and value that’s passed on.” A necessary, but challenging, bid for global growth Next up is global expansion. After recent store openings in Thailand and Singapore, Chow Tai Fook plans new outlets across Southeast Asia as well as in Australia and the Middle East. Many Chinese consumer brands are looking overseas as domestic demand sputters, but analysts say jewellery may be a tougher sell abroad. “For a traditional jewellery brand, the overseas potential is less promising than fashion, bubble tea or home appliances,” said Roland Berger’s Yan. “It’s a big-ticket category, and you need time to educate consumers culturally. It’s an uphill battle – but necessary, because China’s population and domestic demand aren’t growing dramatically.” Reporting by Casey Hall in Shanghai; Editing by Anne Marie Roantree and Thomas Derpinghaus, of Reuters.