Singapore headquartered Soo Kee Group Ltd. announced yesterday that it will be entering  the People’s Republic of China’s (PRC) booming bridal market, which is currently estimated to be worth several billion dollars, and is only growing.

The entry into the Chinese bridal market is being effected through the Group’s wholly-owned subsidiary, Love & Co. International Pte. Ltd.; which, recently, signed an MoU with Global Crown to, amongst other things, establish a joint venture. According to the understanding between the two parties,   the Group’s bridal specialist brand, Love & Co. will sell wedding jewellery in China and Hong Kong.

Under the terms of the MoU, Love & Co. International and Global Crown will subscribe for shares in Diamond Avenue; and upon completion of the due process, will hold 55% and 45% of the issued and paid-up share capital of Diamond Avenue, respectively. “The aggregate initial investment amount by Love & Co. International and Global Crown under the Proposed Subscription shall be RMB50 million (approximately S$10.2 million),” the Group announced.

Global Crown is the parent company of Shenzhen Batar Investment Holding Group Co., Ltd. (Batar Group), a leading gold jewellery manufacturer and distributor in the China. “The Batar Group currently has more than 20 subsidiaries engaged in various businesses, has industrial bases in Shenzhen, Hangzhou, Tianjin, Zhengzhou and Chengdu, and owns more than 400 franchises and retail jewellery stores across the PRC,” Soo Kee said.

The Group, expounding on the China’s bridal market potential, said that according to a China Wedding Industry Development report, the wedding industry grew by 40% from US$ 57 billion to US$ 80 billion from 2011 to 2015 and is expected to keep on its upward trend. Further, according to the Hong Kong Trade Development Council estimates, in 2016 wedding jewellery sales accounted for more than 50% of the total consumption volume of jewellery in China. Also, citing higher demand for “exclusivity and individuality”, Soo Kee said it is expected that 75% of the post-‘80s and ‘90s generations in China’s first and second tier cities would choose bespoke diamond rings for their weddings. It is estimated that in the next few years, more than 10 million couples are expected to get married each year. Hence, the Group reckons, its proposed foray into the Chinese bridal market, “comes at an opportune time”. 

“The PRC’s highly profitable wedding industry is driven by multiple factors,” the Group outlined. “These include rising affluent and well-informed millennial couples who are increasingly adopting a fusion of both Western and traditional customs for their big day. In addition, many engaged couples today are the only-children and in a country where weddings are very much a family affair, not only are the two sets of parents from both sides contributing money to a single wedding, four sets of grandparents may be as well.”

Daniel Lim, Chief Executive Officer of Soo Kee Group said, “Bridal jewellery as an essential item in wedding customs will continue to benefit from the growth in the number of people getting married. We believe that the market, supported by the PRC’s huge population, coupled with the increase in income and acceptance of Western wedding customs by millennial couples, present an immense potential for our Love & Co.’s bespoke jewellery collection.”

To capitalise on these opportunities, Diamond Avenue plans to establish 550 points-of-sales (including franchised outlets) in China and Hong Kong and to achieve an aggregate amount of RMB 2 billion in revenue by the end of its fifth year of operation.

Chau Tsan Kwan, Director of Global Crown and also Chairman and CEO of Batar Group, commented: “I am very pleased to embark on this collaboration with Soo Kee Group, a reputable and established jeweller in the retail industry. With Soo Kee Group’s extensive experience in branding and expertise in producing innovating and differentiated products, Love & Co.’s exquisite bridal jewellery collection will be a good fit in the China market as more consumers are turning to premium products which boost exclusivity and personalisation. In addition, this joint venture is able to leverage on the Batar’s Group existing network to gain traction and enhance its brand credibility.”

Pic Cap: Signing of the MoU between Love & Co. International Pte. Ltd and  Global Crown

Pic Courtesy: Soo Kee Group Ltd.