Jewellery retailer Chow Tai Fook plans to rejuvenate brand, renovate 8,000 stores in mainland China and Hong Kong

• Vice-chair Sonia Cheng says overhaul aims to ‘set the course of the group’s future’, with fresh logo and online shopping improvements among changes
• Group says it has felt chill of economic headwinds in first quarter, with analysts highlighting mainland China’s weaker-than-expected retail sales as possible concern

Chow Tai Fook Jewellery Group has unveiled a plan to rejuvenate its nearly 100-year-old brand, renovate thousands of stores in mainland China and Hong Kong and strengthen online sales to up its game amid economic headwinds.

The Hong Kong-listed jewellery chain on Thursday revealed its ambitions to transform its operations in the next five years to “set the course of the group’s future” and drive growth.

Sonia Cheng Chi-man, the group vice-chairwoman, said the upgrades, of which the cost has not been disclosed, would set the stage for the company’s centenary celebrations in 2029.

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“In the face of rapidly evolving consumer preferences, our strategy at Chow Tai Fook Jewellery is not just to adapt, but to lead,” she said. “We are paving the way towards our centennial by sculpting our legacy into a beacon of modern jewellery and cultural resonance, ensuring that every piece that we craft is as timeless as the heritage we carry forward.”

The introduction of a revamped logo and website will be among the major shake-ups and the group’s almost 8,000 mainland China, Hong Kong and Macau stores set to be renovated to showcase the new brand identity.

The brand’s 2,800 sq ft store on Queen’s Road in Central will finish its makeover by the third quarter.

Conroy Cheng Chi-heng (left) and Sonia Cheng Chi-man (right), both vice-chairmen of Chow Tai Fook Jewellery Group. Photo: May Tse

A five-storey shop of 8,600 sq ft, on East Nanjing Road in Shanghai, is expected to be unveiled in early 2025 as the group’s mainland flagship.

Fresh features will be added to Chow Tai Fook’s website, with planned improvements to the online shopping experience as it looks to further tap into a growing e-commerce market.

The group said the new design would combine its history with a “forward-looking” identity, but maintain classic and timeless elements.

Conroy Cheng Chi-heng, the company vice-chairman and a cousin of Sonia Cheng, said a focal point of the transformation was the retention of a high standard of craftsmanship, one of its main assets.

“We make sure our jewellery appeals to our customers’ modern tastes while staying true to our roots,” he said.

Hong Kong Jewellery Manufacturers’ Association honorary chairman Benny Do Yuen-ling said Chow Tai Fook’s decision to evolve its business strategy made sense.

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“The market has changed drastically over the years – the spending patterns and appetite of consumers are no longer the same as before,” he said.

“Younger consumers tend to shop on their smartphones or online rather than in-person in stores.

“So 10 years ago, retailers focused on expanding retail networks, a strategy which may not be applicable now.”

But some analysts said the uncertain economic environment in Hong Kong and on the mainland was a cause for concern. The mainland accounted for 82 per cent of Chow Tai Fook’s HK$49.5 billion (US$6.3 billion) sales in the six months to September 30 last year.

Statistics showed the mainland’s retail sales in March grew 3.1 per cent year on year, after a 5.5 per cent increase in the combined figures for January and February.

Brokerage Nomura Asia said Chinese retail sales figures were weaker than expected and added that rising gold prices had affected related sales.

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Growth in gold, silvery and jewellery sales on the mainland slowed to 3.2 per cent year on year in March, down from 5 per cent in January and February combined, the brokerage said.

Chow Tai Fook said in its latest financial statement that it had felt the chill of economic headwinds in the first quarter and that same-store sales – revenue from existing shops that have been in operation for a certain period of time – had suffered.

The company reported same-store sales of gem-set jewellery declined 27.2 per cent year on year in Hong Kong and Macau between January and March.

Same-store sales of gem set, platinum and K-gold jewellery shrank 19.5 per cent on the mainland in the first quarter compared with the same period last year.

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This article originally appeared on the South China Morning Post (www.scmp.com), the leading news media reporting on China and Asia.

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