Chow Tai Fook bets on China expansion and smart retail in new biz strategy

Chow Tai Fook's retail plans for the upcoming years will emphasise on expansion in mainland China and smart retail, tapping into the tremendous opportunities arising from the economic recovery. In its virtual media day, the company said it is stepping up its ongoing efforts and capitalising on the increasing domestic demand in mainland China. It added that the rise in disposable income of residents in mainland China will help promote consumption upgrade, unleashing huge spending potential in lower-tiered and county-level cities.

In the years ahead, Chow Tai Fook plans to penetrate further into the market by leveraging its franchisees’ local expertise and access. The group aims to have more than 7,000 points of sales by the financial year of 2025. As of 30 June 2021, the business had 4,850 points of sales in total.

Chan Sai-cheong, managing director of Chow Tai Fook Jewellery Group, said it is encouraging to see that the Chinese market has regained momentum in the past year. "Leveraging our strong brand equity, competitive edge in various channels and product design capabilities, we have geared up to continue our steadfast penetration into the lower-tier cities to bring in new customers and drive business growth," he added.

Chow Tai Fook added that the rapid development of new retail in mainland China and the rising demand for customised products have opened up great business potentials, and the business has created more customer touchpoints via smart retail applications. For instance, its CloudSales 365, a mini-programme built upon WeChat Work platform that connects its eShop and equips staff, has reached more than five million customers. The application is now integrated with the customer relationship management system to empower its sales associates to access real-time information which enable them to provide customers with personalised shopping experience. The company's digital jewellery customisation platform D-ONE can prepare products in one day and delivered within three days to cater to the customer demand for customised products and exclusive experiences.

Apart from China, the company said amid an easing pandemic situation, its business in Hong Kong and Macau are expected to become more stable. It is also planning to implement various initiatives including continuous product differentiation and enhancing customer experience through upgrading its store ambience to attract local consumers. For other markets, Chow Tai Fook will seize business opportunities arising from the Regional Comprehensive Economic Partnership and focus on countries with a higher domestic consumption, such as Kuala Lumpur and Cebu. New stores will be opened in these cities. 

"Technology is the key to promote sustainable development of the jewellery industry. Through smart tools and manufacturing, we will reshape the jewellery shopping experience and lead to the betterment of the industry," said Adrian Cheng, executive director of Chow Tai Fook Jewellery Group.

Photo courtesy: 123RF

Strengthen your omnichannel marketing capabilities today with MARKETING-INTERACTIVE's Omnichannel Marketing Asia on 23 November. Learn ways to build an evidence-based practice, up the ante on your strategies, and be head and shoulders above your competition. Click here to register today!

Related articles
Asian buyers to help return sparkle to fine jewellery and watch market crippled by COVID-19