Chow Tai Fook outlined two major growth drivers – retail expansion and smart retail – at its first-ever Virtual Media Day. Chow Tai Fook aims to have more than 7,000 stores by FY2025, from 4,850 stores as of 30th June 2021 to capitalise on the increasing domestic demand in Mainland China.
Against the backdrop of the National 14th Five-year Plan and the “dual circulation” strategy, it is expected a rise in disposable income of residents in Mainland China will help promote consumption upgrade, unleashing huge spending potential in lower tier and county level cities. In the years ahead, we will penetrate further into the market by leveraging our franchisees’ local knowledge and access, the company stated.
“We will continue our retail expansion in Mainland China to get closer to customers and continue to strengthen product offerings to cater to their needs. At the same time, through smart retail applications and smart manufacturing, we continue to enhance the automation level of our supply chain and optimise our digital platforms, allowing our customers to get their desired jewellery products at their convenience,” it noted.
Kent Wong, Managing Director, Chow Tai Fook Jewellery Group, said, “In 2018, we have executed our three-year ‘Smart+ 2020’ strategic framework which solidified our business foundation by developing innovative technology, differentiation strategy and enhancing supply chain capabilities. We are well poised for accelerated retail expansion and omni-channel integration with our Dual-Force Strategy. This new strategy helps us move towards our four long-term goals steadily, which include market share expansion, operational efficiency improvement through digital transformation, be a tech-savvy jewellery company, and develop a comprehensive jewellery ecosystem.”
Chan Sai-Cheong, Managing Director, Chow Tai Fook, added, “It is encouraging to see that the Mainland China market has regained momentum in the past year. With the ‘dual circulation’ strategy, we believe that the jewellery industry can share the fruits of economic prosperity. 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.”