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Tag: Chow Tai Fook

  • Chow Tai Fook Sparkles in Bangkok, Setting Global Expansion Plans into Motion

    Chow Tai Fook Sparkles in Bangkok, Setting Global Expansion Plans into Motion

    Chow Tai Fook Jewellery Group, the well-known retail giant of the jewelry industry in China, is expanding its market beyond its borders, eyeing growth potentials in the Southeast Asian region. This strategic move commences with the opening of a brand-new outlet in Thailand.

    Thailand Flagship Store

    The enterprise unveiled its flagship store in Bangkok, located in the high-end Siam Paragon shopping and lifestyle complex. This expansion is seen as a response to the escalating market saturation, pricing pressure, and decelerating domestic demand in the world’s second-largest economy.

    Sonia Cheng, Vice Chairman of Chow Tai Fook, expressed her confidence in the company’s international growth, noting the robust momentum particularly in Southeast Asia.

    Future Expansion Plans

    The jewelry group has more ambitious expansion plans in the pipeline. They are set to open their pioneer store in Australia and another one in Canada by the end of June. Moreover, the company intends to penetrate the Middle Eastern market within the forthcoming two years.

    Cheng reiterated the company’s commitment to sustainable and value-added growth, citing Dubai and Doha as their next target markets. This, she said, showcases the enduring global appeal of their brand.

    In line with the trend of Chinese brands venturing into the international scene, Chow Tai Fook is keen to evolve from low-cost manufacturing to fortify its international presence in the lifestyle and consumer sectors.

    Brand History and Challenges

    Chow Tai Fook, a brand with a rich history that spans almost a century, has seen its fair share of challenges. In recent years, it has faced competition from emerging brands like Laopu Gold. The latter has gained traction with consumers, offering a luxury retail experience paired with traditional Chinese craftsmanship in jewelry.

    In a strategic move to bolster its brand image, Chow Tai Fook appointed the Chinese actor Yang Yang to be its global brand ambassador.

    Questions & Answers

    What is the reason behind Chow Tai Fook’s international expansion?
    The company is expanding internationally in response to increasing market saturation, pricing pressure, and slowing domestic demand in China.

    What are Chow Tai Fook’s future expansion plans?
    Chow Tai Fook plans to open new stores in Australia and Canada by the end of June and aims to penetrate the Middle Eastern market within the next two years.

    Who is Chow Tai Fook’s new global brand ambassador?
    Chow Tai Fook has appointed Chinese actor Yang Yang as its global brand ambassador.

  • Chow Tai Fook Unveils Plans for Its First International Premium Jewelry Store in Singapore

    Chow Tai Fook Unveils Plans for Its First International Premium Jewelry Store in Singapore

    China’s largest jewelry retailer Chow Tai Fook Jewelry Group is setting its sights on Singapore with the launch of a premium store, marking a significant step in its global expansion strategy.

    With nearly a century of experience, the Hong Kong-listed company is gearing up to unveil its first overseas upscale outlet at Changi Airport this October. The store aims to captivate both local Singaporeans and international tourists.

    Additionally, Chow Tai Fook has plans to launch another premium location in Bangkok before the year’s end, further emphasizing its commitment to the affluent market segment. Currently, the company operates eight premium stores across major cities like Beijing, Shanghai, Wuhan, Shenzhen, and Hong Kong.

    Having established a presence in Singapore over the past decade with six outlets, the new Changi location is seen as the first steps toward a broader expansion in Southeast Asia. “We have a good brand reputation, and we feel that it is important for us to unveil a new image in Singapore. Then slowly, we will move to other Southeast Asian markets,” Ferreira explained.

    Today, the brand boasts over 6,000 stores globally, with around 60 located outside China, including 20 across Southeast Asia. It seems that Chow Tai Fook has more than just jewels in its crown—it’s also determined to shine brightly on the international stage.

    Questions & Answers

    What is the significance of Chow Tai Fook’s new store in Singapore?
    The new store represents Chow Tai Fook’s first foray into overseas premium retail, targeting both local and tourist markets amid its larger global expansion strategy.

    Why did Chow Tai Fook shift its investment focus?
    Rising U.S. tariffs prompted Chow Tai Fook to explore opportunities in Latin America, as part of its adaptive business strategy.

    How many stores does Chow Tai Fook have internationally?
    Chow Tai Fook operates over 6,000 stores globally, with about 60 outside of China, including 20 in Southeast Asia, showcasing its expansive reach beyond its home market.

  • Luk Fook sales drop 10 per cent in latest quarter

    Luk Fook sales drop 10 per cent in latest quarter

    Luk Fook sales in the third quarter fell 10 per cent on a same-store basis. “Recent market sentiment has been adversely impacted by the US-China trade war, the depreciation of Renminbi, and downward pressure in the stock and property markets,” said chairman Wai Sheung Wong ina  stock exchange filing. Luk Fook says same-store sales of gold products fell by 9 per cent and of gem-set jewellery by 8 per cent.

    The company’s disappointing figures come in the same week as rival jeweller Chow Tai Fook reported an 11 per cent decline in sales across Mainland China, Hong Kong and Macau.

    Wong said the Renminbi’s depreciation led to higher tendency for customers to purchase lower-value items, resulting in a double-digit drop in the average selling price of gem-set jewellery products.

    Same-store Luk Fook sales in Mainland China fell by 14 per cent, with gold products down 16 per cent and gem-set jewellery down 5 per cent.

    As at December 31 the company operated 221 of its own Lukfook stores, including 150 on the mainland, 49 in Hong Kong, 11 in Macau and 11 overseas. It supplied 1573 licensed shops on the mainland, one in Cambodia and one in the Philippines, making a total of 1796 worldwide.

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  • Chow Tai Fook Overcomes Sales Slump With Increased Operating Profit: Unveils Expansion Plans

    Chow Tai Fook Overcomes Sales Slump With Increased Operating Profit: Unveils Expansion Plans

    Despite subdued consumer sentiment impacting its sales in the last fiscal year, Chow Tai Fook witnessed an increase in its operating profit.

    The company’s revenues for the fiscal year, ending on March 31, saw a significant decrease of 17.5 per cent, amounting to HK$89.6 billion (US$11.4 billion). The reasons behind this slump were attributed to wider macroeconomic factors and high gold prices, both of which contributed to dampening consumer sentiment.

    However, the company’s operating profit demonstrated resilience amidst these challenges, marking a 9.8 per cent increase and reaching HK$14.7 billion. This rise in profit can be attributed to a well-curated product mix, increased gold prices, and effective cost management strategies. Consequently, the operating profit margin also saw an enhancement of 400 basis points, rising to 16.4 per cent.

    Nevertheless, the profit assigned to shareholders witnessed a drop by 9 per cent, amounting to HK$5.9 billion. This was due to the fact that the growth in operating profit was overshadowed by the losses incurred through the revaluation of gold loan contracts.

    The company also highlighted that its same-store sales performance in Mainland China demonstrated a progressive improvement on a quarterly basis. Concurrently, the performance of stores in Hong Kong and Macau showed signs of stabilization towards the end of the fiscal year.

    Throughout the year, Chow Tai Fook made notable advances in its brand transformation strategy. The company launched five new stores featuring a premium format in Mainland China and Hong Kong. These were designed to augment brand desirability and enhance store productivity.

    In the upcoming fiscal year, the company is set to continue its strategic expansion by unveiling its new-format stores in Singapore and Canada. Additionally, it also plans to penetrate high-growth markets in Southeast Asia and prime locations.

    Questions & Answers

    What was Chow Tai Fook’s revenue for the year ended March 31?
    The revenue for Chow Tai Fook for the year ended March 31 was HK$89.6 billion (US$11.4 billion).

    What factors contributed to the increase in Chow Tai Fook’s operating profit?
    The rise in Chow Tai Fook’s operating profit can be attributed to an improved product mix, higher gold prices, and effective cost management measures.

    What are Chow Tai Fook’s expansion plans for the upcoming fiscal year?
    Chow Tai Fook’s expansion plans for the upcoming fiscal year include launching new-format stores in Singapore and Canada. It also plans to infiltrate high-growth markets in Southeast Asia and other prime locations.

  • Chow Tai Fook arm in bid for Giordano International

    Chow Tai Fook arm in bid for Giordano International

    Giordano International Ltd. climbed as much as 23% after an investment vehicle owned by Hong Kong’s third-richest person offered to buy the apparel retailer.

    Clear Prosper Global Ltd., a BVI vehicle wholly-owned by Chow Tai Fook Nominee Ltd., offered to buy Giordano for HK$1.88 (24 cents) per share, according to a filing late Thursday. That’s an 18% premium on its most recent closing price, and shares surged to as much as HK$1.95 on Friday.

    The investment vehicle and its related parties already hold a 24.57% stake in Giordano and the maximum cash consideration is HK$2.56 billion, according to the statement.

    Chow Tai Fook Nominee is a private vehicle owned by the Cheng family, whose patriarch, Henry Cheng, is Hong Kong’s third-richest person with a fortune of $22.6 billion, according to the Bloomberg Billionaires Index. The family’s sprawling investment empire includes one of the world’s biggest jewelry chains, as well as real estate, infrastructure and hotels.

    Established in 1981, Giordano has around 2,100 shops in more than 30 countries and regions, according to its website. The acquisition offer will let the group continue its existing principal business, and there are no intended job cuts, according to the statement.

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  • Chow Tai Fook profit rebounds as Mainland China focus pays off

    Chow Tai Fook profit rebounds as Mainland China focus pays off

    Hong Kong-listed Chow Tai Fook Jewellery Group Ltd reported a forecast-beating 108% jump in annual profit on Tuesday, thanks to one-off COVID-19 related rent concessions, an unrealised gain on gold loans and foreign exchange gains.

    China’s largest jeweller by market value said net profit surged to HK$6.03 billion ($777 million) from HK$2.9 billion in fiscal 2020. That compared to a forecast of HK$5.23 billion profit by 14 analysts, Refinitiv SmartEstimate data showed.

    It was the highest annual profit since 2014.

    A COVID-19 related rent concession amounted to HK$127.6 million as compared to HK$16.2 million in fiscal 2020, while net foreign exchange gain amounted to HK$336.4 million against HK$234 million loss in a year ago period.

    Revenue for the year to March 31 rose 23.6% to HK$70.16 billion from HK$56.75 billion a year earlier, driven by retail expansion amid improving consumer sentiment in mainland China and a softer gold price in the second half of the fiscal year.

    “As we are optimistic about the mid- to long-term growth in the mainland China market, we will focus on our mainland China’s business development in the coming future,” Chairman Henry Cheng said in a statement to the Hong Kong Stock Exchange.

    “We will continue our retail expansion strategy through penetrating into lower tier cities and leveraging franchisees’ local knowledge,” he added.

    The retail network expanded to 4,591 point-of-sales (POS) by the end of March, with a net addition of 741 POS. The company plans to add at least 700 POS in mainland China in fiscal 2022 but may close 10-15 POS in Hong Kong and Macau.

    Same-store sales surged 31.9% in mainland China but plunged 41.3% in Hong Kong and Macau as major border crossings remained closed during the period.

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  • Mainland expansion paying off for Chow Tai Fook

    Mainland expansion paying off for Chow Tai Fook

    Growing demand due to innovation in designs and changing fashion trends will help to boost the global jewelry market in the forecasted period. Jewelry refers to ornaments such as earrings, neckless, bracelets, pendants, stones, rings, and metals. Jewelry is available in the form of gold, silver, diamond, platinum, and gems. Upsurging demand for jewelry on Retail and e-commerce platform will help to boost the global jewelry market.

    Government initiative towards Jewellery market is helping to the triggered global market. for example, The Bureau of Indian Standards (BIS) has revised the standard on gold hallmarking in India from January 2018. The gold jewelry hallmark will now carry a BIS mark, purity in carat and fitness as well as the unit’s identification and the jeweler’s identification mark. The move is aimed at ensuring a quality check on gold jewelry.

    AMA Research have added latest edition of survey study on Jewellery Market with 100+ market data Tables, Pie Chat, Graphs & Figures spread through Pages and easy to understand detailed analysis. At present, the market is developing its presence. The Research report presents a complete assessment of the Market and contains a future trend, current growth factors, attentive opinions, facts, and industry-validated market data.

    The research study provides estimates for Jewellery Forecast till 2025*. Some are the key players taken under coverage for this study is Chow Tai Fook Jewellery (China), LVMH (Paris), Rajesh Exports (India), Richemont (Switzerland), Signet Jewelers (Hamilton), Maria Black (Denmark), Missoma (United Kingdom), Gaviria (United Kingdom), Maria Tash (United States), Katerina Makriyianni (United Kingdom) and Swarovski (Austria)

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  • Chow Tai Fook finds sales respite as Mainland China gets back to business

    Chow Tai Fook finds sales respite as Mainland China gets back to business

    Hong Kong jeweler Chow Tai Fook says the reopening of retail stores in Mainland China eased the company’s sales decline in the June quarter.

    But the lack of tourists in Hong Kong and Macau decimated sales there.

    Same-store sales were down by 93.2 percent in Macau and 72.5 percent in Hong Kong. However, an “encouraging sequential improvement” saw the decline on the mainland capped at 11.2 percent.

    The group added a net 49 stores in Mainland China during the quarter, comprising 45 stores carrying its namesake brand, three So In Love stores and four Monologue shops. A net one each of T Mark, CTF Watch and Enzo stores closed. The company closed three stores in Hong Kong during the quarter.

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  • Chow Tai Fook posts strong profit despite retail turmoil

    Chow Tai Fook posts strong profit despite retail turmoil

    Hong Kong-headquartered jeweler Chow Tai Fook has ended the financial year with a US$374 million profit attributable to shareholders.

    While that is down 36.6 percent on last year, and its worst annual result in a decade, it underpins the strength of the company at a time that retail sales in Hong Kong and China have been ravaged by Covid-19.

    Sales for the year to March fell 14.9 percent to $7.3 billion, with Hong Kong and Macau hardest hit, down 38.7 percent, and on the mainland by 15.1 percent.

    Besides ongoing social unrest in Hong Kong since June last year, which decimated the numbers of inbound tourists from Mainland China, and Covid-19 impacting in the first quarter of this calendar year, rising gold prices also dented consumer demand for jewelry.

    In its earnings statement, Chow Tai Fook said that while Mainland China operations “suffered severely” in the final quarter due to the pandemic, the company has seen signs of recovery as restrictions on shopping and social distancing were lifted and its short-term business outlook is “cautiously optimistic”.

    “We shall continue our market expansion strategy through franchise model as the situation stabilizes and the online-offline channel integrations to take advantage of the digital trends. Also, we shall continue our multi-brand strategy to better serve each unique customer segment.” However, the company expects the Hong Kong and Macau market to remain challenging in the foreseeable future.

    “As the customer base has been reshaped, we shall continue to consolidate our retail network, rationalize cost structure and refine our business strategies. Apart from focusing on store efficiency, we also place an emphasis on transforming our current business model through innovation and technology in order to enhance retail experience, improve operational efficiency and strengthen our market leadership position.”

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  • Chow Tai Fook closes 40 stores after sales slump

    Chow Tai Fook closes 40 stores after sales slump

    Hong Kong-based jewelry group Chow Tai Fook has closed 40 stores in Hong Kong after experiencing a 60-per-cent drop in retail sales there amidst the coronavirus outbreak.

    Sales on the mainland fell 42 percent, according to an update on trading for the first two months of this year.

    “In response to the measures of local governments in containing the spread of COVID-19 virus, the majority of our point of sale in Mainland China were temporarily closed since late January, and in Hong Kong and Macau from early February,” read the update.

    “Businesses in both markets were inevitably affected during the period. As of February 29, approximately 70 percent of our points of sale in Mainland China and 64 percent in Hong Kong and Macau had resumed operations.”

    The company said the interest of public health and the safety of its staff remained of utmost importance to the group despite its heavy loss of business.

    Operations at the Chow Tai Fook’s production facilities in Shunde and Shenzhen have resumed operations gradually. Its inventory remains higher than usual in the short term due to a boost in production for the Chinese New Year period of items that now remain unsold.

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  • Chow Tai Fook completes Enzo purchase

    Chow Tai Fook completes Enzo purchase

    Chow Tai Fook has completed a full acquisition of the luxury colored-gem jewelry brand Enzo.

    Enzo currently operates 60 points of sale in Mainland China, most of which are in Tier I and II cities. It also maintains a robust presence on several major Chinese e-commerce platforms.

    Under Chow Tai Fook’s ownership, the Enzo brand aims to expand its footprint further in the territory through both self-operated and franchise models.

    “Distinguished by exquisite craftsmanship and creativity, Enzo will continue its niche position as a natural colored gem specialist to complement the group’s multi-brand strategy, enabling us to further venture into the colored gemstone arena,” said Chow Tai Fook executive director Adrain Cheng.

    “On the other hand, Enzo can leverage Chow Tai Fook’s retail and industry know-how to generate greater values to its customers.”

  • Chow Tai Fook Launches ‘Frozen II’ New Platinum Collection with Platinum Guild International

    Chow Tai Fook Launches ‘Frozen II’ New Platinum Collection with Platinum Guild International

    The world’s leading jeweller Chow Tai Fook, in collaboration with Platinum Guild International (PGI) and Disney, recently launched the ‘Frozen II’ new platinum collection in Chengdu, Sichuan Province. The new collection features snowflakes as the key design element, a perfect symbol to represent the pure white shine of platinum.

    Chow Tai Fook’s ‘Frozen II’ new collection is the first exclusive collaboration among Chow Tai Fook, PGI and Disney. “Our partners continue to commit to innovation that brings excitement to today’s jewellery consumers. PGI collaborates with the jewellery industry on product design, marketing and in-store activation to drive awareness and boost sales of new-generation platinum jewellery in China.” says Huw Daniel, CEO of Platinum Guild International, “Chow Tai Fook has always been a leader in platinum jewellery, and we are thrilled that they collaborated with PGI and Disney to push the boundaries of platinum innovation and consumer experience.”

    “The new collection is beautiful and unprecedented. We deeply believe there will be more collaboration in the future.” Said Chan Sit Cheong, Executive Director of Chow Tai Fook. “We are continuously innovating to achieve higher quality products, beautiful packaging and exciting brand experience. We will continue to bring better products to the market and contribute to the development of the jewellery industry.”

    The new platinum collection includes ear strings, earrings, necklaces, and bracelets in various styles, inspired by the shape of snowflakes. Pei Xiang, Merchandise Management Platinum General Manager at Chow Tai Fook, said: “Courage and fortitude are the inspirations behind the design of the ‘Frozen II’ platinum collection. Platinum is pure and strong. The enamel embellishing the heart of the snowflake is selected from the rarest blue of the Paraiba tourmaline, a colour that is unique and requires the highest craftsmanship.”

    Aside from the design innovation and craftsmanship, another excitement is the specially designed jewellery box that comes with every purchase. The box lights up in the dark, featuring the silhouette of Frozen II’s characters on its exterior, while the leading character Elsa shines on an engraved crystal above the jewellery compartment. The packaging brings extraordinary delight to the unique offering.

    Chow Tai Fook’s ‘Frozen II’ platinum jewellery collection is currently available in more than 1,000 of its stores across China, as well as e-commerce channels.

  • Chow Tai Fook closing more Hong Kong stores

    Chow Tai Fook closing more Hong Kong stores

    Chow Tai Fook Jewellery Group has revealed plans to shut about one in five of its Hong Kong stores, the majority of them in prime tourist areas.

    The closures will take effect when leases come up for renewal throughout this year, starting from April according to an emailed statement cited by Bloomberg.

    The move follows announcements by Prada and Louis Vuitton they will not renew their leases on stores in Russell Street and Times Square, respectively. Sasa International has previously said it would close up to 30 stores in Hong Kong.

    The network retrenchments follow rapidly declining retail sales in Hong Kong since June last year, especially in the luxury sector, due to ongoing demonstrations and protests in the streets which have spooked foreign visitors, and declining visitor numbers from tier-1 cities in Mainland China. Jewelers have been hit by volatile gold prices as well, sparked by geopolitical tensions and the Sino-US trade war.

    Chow Tai Fook has not specified exactly how many stores it will close, referring to “in the mid-teens” when asked.

    The stores are primarily located in areas popular with tourists, including Tsim Sha Tsui, Mongkok and Causeway Bay.

    Chow Tai Fook believes a trimmer store network will reduce overheads and improve margins after it experienced three consecutive quarters of declining same-store sales. In the three months to December 31, same-store sales fell 35 percent in value in Hong Kong and Macau and by 47 percent in volume.

    However on the mainland, sales rose 17 percent during the quarter, driven by the rapid expansion of the brand’s store network there; it added a net 279 stores. Same-store sales on the mainland rose by 2 percent.

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  • Same-store sales fall for Chow Tai Fook

    Same-store sales fall for Chow Tai Fook

    Jeweller Chow Tai Fook says same-store sales in its Hong Kong home market and Macau fell by 11 per cent in the June quarter.

    But sales in Mainland China rose by the same percentage.

    Sales volume fell by 14 per cent in Hong Kong and Macau and by 3 per cent on the mainland, while the value of retail sales rose 24 per cent on the mainland and fell 6 per cent on local markets.

    “The Hong Kong and Macau market was affected by a tough base of comparison and cautious consumer sentiment amid an uncertain macro environment,” the company said in a stock-exchange filing.

    Sales of gem-set jewellery fell by 16 per cent in Hong Kong and Macau during the quarter as consumers held back on spending.

    The difference in volume growth verses sales growth reflects consumers opting for less expensive purchases in a period when the gold price was relatively flat.

    The company opened 119 points of sale in Mainland China during the quarter: 113 bearing the Chow Thai Fook Jewellery banner, three Monologue stores, and three SoInLove stores. It closed three CTF Watch stores and one Hearts on Fire store. In other markets, it opened three Chow Tai Fook Jewellery stores – in Singapore, South Korea and the Philippines, and closed four Hearts on Fire stores in Taiwan. At the end of June the store network totalled 3248, up by 114 over the previous quarter.

  • Chow Tai Fook sales slip amid consumer uncertainty

    Chow Tai Fook sales slip amid consumer uncertainty

    Chow Tai Fook sales declined by 11 per cent in same-store sales volume in both Mainland China and Hong Kong & Macau in the December quarter. However the decline in value was less, at 7 per cent in Mainland China and 6 per cent in Macau. Retail sales on the mainland rose by 1 per cent, which seems a modest rate given the company opened 259 new points of sale there during the quarter. Total retail sales value in Hong Kong fell by 1 per cent, despite five new stores opening there.

    In a stock exchange filing, the company said the decline in same-store sales came “amid an uncertain macro environment”.

    In Mainland China, same-store sales of gem-set jewellery declined by 5 per cent, while the average selling price (ASP) fell from HK$6900 in the preceding quarter to $6600.

    In Hong Kong and Macau, gem-set jewellery sales fell by 8 per cent and the ASP from $11,800 to $11,500.

    Sales of gold products in both markets was affected by a decline in volume growth as the gold price strengthened, the company reported. That drove the ASP from $7000 to $7400 in Hong Kong and Macau and from $3900 to $4300 in Mainland China.