RAPAPORT... Hong Kong-based jeweler Chow Tai Fook plans to open a slew of new stores, as it works its way into smaller and more rural cities in China.
The move, which will see the company open more than 2,000 locations internationally by 2025, will capitalize on increased mainland demand since the beginning of the pandemic, the company said Tuesday.
“It is expected a rise in disposable income of residents in mainland China will help promote [a] consumption upgrade, unleashing huge spending potential in lower-tier and county-level cities,” the jeweler explained. “In the year ahead, we will penetrate further into the market.”
Chow Tai Fook will also focus on countries with higher domestic consumption. To that end, it will open locations in Kuala Lumpur, Malaysia, and in Cebu, Philippines, it noted. The company expects to have more than 7,000 points of sale by 2025, from 4,850 as of June 30.
In addition, the jeweler plans to increase its smart retail offerings, introducing a digital jewelry-customization platform that can turn around pieces within three days. Meanwhile, a smart manufacturing system will be responsible for half of yearly production and increase productivity by 30% annually by 2025.
“This new strategy helps us move towards our four long-term goals steadily, which include market-share expansion, operational-efficiency improvement through digital transformation, be a tech-savvy jewelry company, and develop a comprehensive jewelry ecosystem,” added Chow Tai Fook managing director Kent Wong.
Image: A Chow Tai Fook store in Shenzhen, China. (Shutterstock)
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