A yr on from shopping for Hearts on Hearth, Hong Kong headquartered jeweller Chow Tai Fook stays bullish concerning the model’s prospects in Mainland China, regardless of the static jewelry market.
Chow Tai Fook has three standalone shops in China and, one concession there, together with one other concession in Hong Kong. It plans 10 standalone shops in China by the yr’s finish and the corporate will proceed to search for alternatives for brand spanking new concessions.
“Hearts of Hearth is a really younger model, however we’ve got expertise with the Chinese language group in Taiwan the place Hearts on Hearth is ranked as probably the most desired and sellable diamond model,” stated Chow Tai Fook MD Kent Wong in an interview with Rapaport News revealed on-line.
“Chinese language shoppers in Taiwan like perfection. Subsequently, the perfectly-cut diamond is one thing that they should have. The identical style applies in Mainland China,” Wong defined.
“Hearts on Hearth can leverage Chow Tai Fook’s big buyer base. Chow Tai Fook manages about 1.5 million VIP clients in China. Their repeat purchases account for about 35 per cent of our complete gross sales, and about 65 per cent of our repeat buy clients need gem-set jewelry, particularly with diamonds.
“For Hearts on Hearth, we have now already set a three-year improvement plan. We need to improve the purchasing expertise within the retailer by way of promoting campaigns and packages to help the model.”
Chow Tai Fook purchased the Hearts on Hearth luxurious diamond model final June for US$150 million.
Kent stated Hearts on Hearth is an effective complement to Chow Tai Fook as a result of it’s a premium luxurious diamond model that has been within the business for many years.
“Chow Tai Fook can profit from Hearts on Hearth’s expertise in creating a luxurious model. It has wonderful jewelry design and brings extra of a worldwide imaginative and prescient to our design group,” he informed Rapaport News.
He stated the Chinese language authorities’s anti-graft marketing campaign had affected the posh watches, attire and drinks sectors, however not jewelry.
“Our analysis exhibits that about 70 per cent of girls in China’s Tier I and Tier II cities, need to obtain a diamond engagement ring. Yearly, we’ve got about 12 million to 13 million couples getting married in China so the bridal market supplies secure demand, regardless of the market state of affairs.”
In a broad ranging interview Wong talks concerning the distinctive RFID tagging Chow Tai Fook is utilizing instore to review buyer behaviour when taking a look at jewelry, advertising initiatives for Hearts on Hearth and benefiting from on-line to drive retail gross sales.