Lao Feng Xiang, the Chinese jewellery brand few in the west have ever heard of, is planning to open 20 stores in Hong Kong.
Lured by the prospect of cheaper rents in high profile locations as Hong Kong’s luxury sector enters a decline, Lao Feng Xiang sees the foray as an opportunity to build its brand awareness outside the mainland.
Lao Feng Xiang, controlled by the Shanghai Government, has a 167 year history in the mainland – and has a 3000 strong store network. It entered Hong Kong in May and now has two stores trading. Marketing manager Wang Ensheng told Bloomberg that as many as 20 will be trading within a few years.
“The fact that Lao Feng Xiang opened stores in Hong Kong boosted our reputation,” Wang told Bloomberg in a telephone interview. “Mainland consumers know that we are now a player in this international jewelry hub.
“This year is the best time to enter Hong Kong, an opportunity that we have waited for years.”
The first Lao Feng Xiang store opened in Tsim Sha Tsui, an 80sqm boutique which sold more than HK$100 million of jewellery on its opening day.
“Hong Kong is a key market in our internationalisation strategy. We provide more diversified selections at the Tsim Sha Tsui store than any of our 2800 stores on the mainland,” said Wang at the time of the opening.
“The logic is simple – we want to attract more young people to our fold,” he said.