Hong Kong-based jeweller Chow Tai Fook’s revenue for the year ending March 2023 decreased 4.3 percent to HKD 94.6 billion (USD 12 billion), due to a 6.3 percent drop in sales in mainland China.
Despite a slower recovery on the mainland, Chow Tai Fook maintained its confidence in the “mid- to long-term growth prospects of its jewellery market and economy.” The past year saw the group exceed a milestone 7,000 points of sale in mainland China, with plans to open 600 to 800 more points of sale as well as undergo retail store enhancements in 2024.
Sales in other markets such as Hong Kong and Macau rose 8.8 percent, with the return of mainland Chinese spending in these destinations is anticipated to catalyse further recovery of Chow Tai Fook’s business.
In addition to these core markets, Chow Tai Fook will look to markets “with strong retail growth potential.” In 2023 it expanded its retail footprint in nine new markets: Canada, Singapore, Malaysia, Thailand, Vietnam and the Philippines.
According to its revenue breakdown, gold jewellery and products continue to achieve the highest sales for the brand, with 76.9 percent of sales coming from the category, followed by gem-set, platinum and K-gold jewellery (17.8 percent) and watches (5.3 percent).
Among the strategic priorities announced by the group are elevating its brand positioning to attract new and younger consumers, optimising its brand portfolio, and accelerated digitalisation.
In a bid to enhance its brand equity and appeal to a new generation of shoppers, Chow Tai Fook will relaunch its brand identity, with a gradual roll-out of redesigned stores, displays, and packaging, and a revamped loyalty programme.
Sonia Cheng, vice-chairman at Chow Tai Fook Jewellery Group, said the first refreshed store is set to be unveiled in Hong Kong next summer.