Chow Tai Fook Jewellery Group Ltd is confident that its jewellery sales will continue to rise. The world’s largest listed jewellery retailer has revealed its plan to open more than 500 new stores in the next four years, Bloomberg reported
"We’re still quite positive," Alan Chan, company director of group branding, was quoted as saying. "Jewellery demand is growing steadily."
The Hong Kong-based jewellery retailer has more than 1,500 watch and jewellery outlets in 320 cities in China, Hong Kong and Macau. It focuses on gold jewellery and generates more than 70 percent of sales from products with a price range of $250 to $12,880. These “are things that the general public can afford, and we are going after this segment,” Chan said.
The Chinese culture has an affinity for gold, he said, noting that consumers buy the precious metal for fortune and investment value. "Demand is very stable in that respect," Chan said.
China, the world second-largest gold jewellery market, is expected to lift the retail consumption of gold by 35 percent this year, supported by rising income and sustained urbanisation, according to a recent research by Frost & Sullivan.
Chow Tai Fook will continue to penetrate the market with ample potential, Chan said, noting that the company plans to have more than 2,000 jewellery outlets in China by 2016. The company will tap into third- and fourth-tier cities and "go deeper" into large metropolises, such as Shanghai, as it opens more free-standing stores.
Chow Tai Fook plans to have more than 2,000 jewellery outlets in China by 2016