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Tag: Chow Tai Fook

  • How Chow Tai Fook is setting Hearts on Hearth

    How Chow Tai Fook is setting Hearts on Hearth

    A yr on from shopping for Hearts on Hearth, Hong Kong headquartered jeweller Chow Tai Fook stays bullish concerning the model’s prospects in Mainland China, regardless of the static jewelry market.

    Chow Tai Fook has three standalone shops in China and, one concession there, together with one other concession in Hong Kong. It plans 10 standalone shops in China by the yr’s finish and the corporate will proceed to search for alternatives for brand spanking new concessions.

    “Hearts of Hearth is a really younger model, however we’ve got expertise with the Chinese language group in Taiwan the place Hearts on Hearth is ranked as probably the most desired and sellable diamond model,” stated Chow Tai Fook MD Kent Wong in an interview with Rapaport News revealed on-line.

    “Chinese language shoppers in Taiwan like perfection. Subsequently, the perfectly-cut diamond is one thing that they should have. The identical style applies in Mainland China,” Wong defined.

    “Hearts on Hearth can leverage Chow Tai Fook’s big buyer base. Chow Tai Fook manages about 1.5 million VIP clients in China. Their repeat purchases account for about 35 per cent of our complete gross sales, and about 65 per cent of our repeat buy clients need gem-set jewelry, particularly with diamonds.

    “For Hearts on Hearth, we have now already set a three-year improvement plan. We need to improve the purchasing expertise within the retailer by way of promoting campaigns and packages to help the model.”

    Chow Tai Fook purchased the Hearts on Hearth luxurious diamond model final June for US$150 million.

    Kent stated Hearts on Hearth is an effective complement to Chow Tai Fook as a result of it’s a premium luxurious diamond model that has been within the business for many years.

    “Chow Tai Fook can profit from Hearts on Hearth’s expertise in creating a luxurious model. It has wonderful jewelry design and brings extra of a worldwide imaginative and prescient to our design group,” he informed Rapaport News.

    He stated the Chinese language authorities’s anti-graft marketing campaign had affected the posh watches, attire and drinks sectors, however not jewelry.

    “Our analysis exhibits that about 70 per cent of girls in China’s Tier I and Tier II cities, need to obtain a diamond engagement ring. Yearly, we’ve got about 12 million to 13 million couples getting married in China so the bridal market supplies secure demand, regardless of the market state of affairs.”

    In a broad ranging interview Wong talks concerning the distinctive RFID tagging Chow Tai Fook is utilizing instore to review buyer behaviour when taking a look at jewelry, advertising initiatives for Hearts on Hearth and benefiting from on-line to drive retail gross sales.

  • Chow Tai Fook boosts community as gross sales slip

    Chow Tai Fook boosts community as gross sales slip

    Chow Tai Fook added 180 new factors of sale within the 2015 monetary yr and says it’s going to proceed to increase regardless of the slip in gross sales.

    The corporate now has 2257 factors of sale, largely in Hong Kong, mainland China and Macau.

    “Whereas it’s essential to take care of our market management, we’ll proceed to pay shut consideration to our level of sale technique and make immediate revisions when mandatory throughout unpredictable financial occasions,” the corporate stated in its earnings assertion.

    Chow Tai Fook’s income decreased by 17 per cent to HK$64.277 billion in FY2015 in comparison with HK$77.407 billion within the previous yr. General similar retailer gross sales declined 24.1 per cent, amongst which jewelry enterprise in Mainland China and Hong Kong and Macau recorded a decline of 16.1 per cent and 32.eight per cent respectively.

    The corporate stated a part of the decline was resulting from gold gross sales coming down from a excessive base through the 2014 yr when commodity costs have been unusually excessive.

    Income from gem-set jewelry as a proportion of income elevated by 5.9 per cent to 27 per cent.

    Gross revenue decreased by 9.eight per cent to HK$19.072 billion, however gross revenue margin improved from 27.three per cent to 29.7 per cent.  As on the finish of March it operated 30 eCommerce platforms, (11 greater than a yr earlier) together with its direct web site Chow Tai Fook eShop and all main third-party market platforms in Mainland China, specifically Tmall.com, JD.com, VIP.com, Suning.com, mei.com, and Amazon.cn.

    “With a mean promoting worth of round HK$1000, our eCommerce platforms supply a youthful line of merchandise with decrease entry costs, concentrating on the youthful clients who type a big  portion of internet buyers. In response to the wants of the youthful era, a few of our merchandise are provided solely on our e-commerce channels, and we’re placing extra emphasis on the quickly rising cellular platforms within the coming yr.”

    The corporate additionally accomplished the acquisition of Hearts On Hearth, the worldwide model it took over in August to spice up its product vary and supply. Chow Tai Fook has already opened its first Hearts On Hearth retailer in Mainland China, in Shanghai

    Chow Tai Fook says within the yr forward it’s going to stay dedicated to a balanced strategy of progress and return,

    It plans so as to add an extra 150-160 factors of sale to its mainland China community.

    “We consider room for enlargement continues to be vital for us, as we’re presently current in simply 484 cities out of over 700 within the nation. To make sure our new additions will absolutely seize market potential, we’ll concentrate on decrease tier cities and depend on native experience and professional information to facilitate market entry. As well as, we shall be conducting upgrades in  roughly 10 per cent of our present POS to “high-end luxurious” or “magnificence” fashion over the subsequent three years in response to the evolving retail panorama. A lot of the upgrades will occur in Tier I and II cities, the place buyer expectations are typically greater.”

    In Hong Kong and Macau, the emphasis shall be on effectivity, because it continues to consolidate its retail community the place applicable to handle rental prices.

    “Abroad market stays a strategic element in our market improvement plans — our imaginative and prescient stays that we be the trusted model wherever Chinese language shoppers populate or ceaselessly go to; we now have set foot in Taiwan, Malaysia and Singapore — in addition to our latest regional market: South Korea.”

    Chow Tai Fook additionally sees vital additional progress alternative in eCommerce. “Whereas we consider the core of our enterprise has by no means been modified, this initiative intends to discover methods to extract O2O synergy and to assist us keep related with our clients, particularly the youthful generations, in interactive and revolutionary methods.”

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  • Chow Tai Fook takes on landlords

    Chow Tai Fook takes on landlords

    Hong Kong jeweller Chow Tai Fook is flexing its muscle in a softening retail rental market, in search of lease cuts of as much as 20 per cent.

    The listed firm says some 30 leases throughout the territory will come up for renewal later this yr and the corporate will probably be in search of reductions within the wake of a difficult retail market which has seen gross sales plunge in some luxurious classes.

    In an interview revealed on Bloomberg on-line, MD Kent Wong stated the corporate has already been granted reductions of between 10 per cent and 20 per cent in renewal negotiations this yr, however he didn’t reveal the variety of leases concerned.

    He advised Bloomberg that circumstances in 2015 are “very particular”.

    “We’re demand pushed; we anticipate we will have a 20 per cent rental discount.”

    Chow Tai Fook has reported a fall in same-store gross sales in Hong Kong and Macau of 26 per cent within the first quarter of this yr – the fifth consecutive quarterly fall.

    Wong stated his firm might shut some shops this yr – singling out its Peak outlet for instance.

    The jeweller has 90 shops in Hong Kong, interesting largely to Mainland Chinese language vacationers. However customer numbers from China have been falling, and people nonetheless coming are much less prosperous than the standard guests of previous years. These with larger disposable incomes have began travelling additional afield, many spooked by the Occupy Central protests of the second half of final yr.

    The mainland authorities’s clampdown on present giving has additionally affected gross sales of upper priced luxurious items in Hong Kong.

    Regardless of a lower in complete retail gross sales of two.three per cent in Hong Kong in the course of the first three months of 2015, Wong expects a restoration later within the yr.

    “The market basically wants six months to at least one yr to restructure the product combine catering to the altering style of consumers,” he advised Bloomberg.

    “We stay optimistic about Hong Kong within the mid- to long-term.”

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  • Chow Tai Fook to partner in Vietnam casino

    Chow Tai Fook to partner in Vietnam casino

    Hong Kong based retail jeweller Chow Tai Fook is to partner in a US$4 billion casino project in Vietnam.

    Chow Tai Fook Enterprises, an affiliate of Chow Tai Fook Jewellery Group, the world’s largest jewellery retailer by market value, has already committed to investing in casino resorts in Brisbane, in the state of Queensland, Australia, and in South Korea.

    Now it will partner with Vietnamese investment group VinaCapital and Suncity, a Macau-based casino tour operator.

    Strict regulations in Vietnam prevent locals from gambling inside the country, however the government allows developments to serve tourists or those locals who hold a foreign passport. New casino licences will only be issued to developments with an investment value in excess of $4 billion, which deters minor players.

    Other international gambling businesses, like Sheldon Adelson’s Sands Group have gone as far as creating plans for integrated resorts featuring casinos, but have stopped short of commencing construction until the government loosens restrictions on locals playing.

    Reuters reports the new resort will be located in Quang Nam in the central part of Vietnam

    The news agency said Chow Tai Fook’s involvement was confirmed by VinaCapital after the jeweller issued no comment beyond confirming “preliminary studies”.

    Chow Tai Fook has reportedly replaced Malaysian casino operator Genting which withdrew from the project in 2012 due to the local gambling restrictions.

    Reuters said the government was “mulling” a change in the legislation but has not released a policy as yet.

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  • Chow Tai Fook takes homeland hit

    Chow Tai Fook takes homeland hit

    Hong Kong based jeweller Chow Tai Fook says sales in its core Hong Kong market plunged 29 per cent over Lunar New Year.

    However an 11 per cent rise in mainland sales saw its total sales rise nine per cent during Lunar NY 2015 compared with the same season in 2014.

    In the mainland, same store sales of gem-set jewellery rose 62 per cent and of gold by two per cent. But in Hong Kong and Macau, gem-set sales fell 17 per cent and gold sales by 38 per cent – a rate even worse than the disappointing last quarter of 2014.

    In a statement, the company blamed weak consumer sentiment for a decline in sales of high-end products.

    Also a likely factor was the changing demographic of Chinese tourists into Hong Kong: in the past such visitors were usually cashed up and high spenders, but those tourists are now venturing further abroad into other Asian destinations and to Europe. Some have been spooked by the Occupy Central protests. The new mainland tourists into Hong Kong are of more modest means and often travelling for the first time.

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