Chow Tai Fook to expand retail footprint, focus on digital
Hong Kong-based jewellery retailer Chow Tai Fook Jewellery Group Ltd is eyeing to expand its retail network in China by fiscal year 2025 while strengthening its digital strategy.
The company said it is aiming to have more than 7,000 points of sale (POS) in China over the next four years, citing stronger domestic demand alongside the growth of the country’s smart retail market. As of June 2021, Chow Tai Fook has a total of 4,850 POS.
“The rapid development of new retail in China and the rising demand for customised products have opened up great business potentials,” the jeweller said. “We are well poised for accelerated retail expansion and omni-channel integration with our Dual-Force Strategy.”
Chow Tai Fook has been using smart retail applications in its stores. So far, these have helped enhance customer service and conversion rates, and improve operational efficiency.
Smart retail is expected to account for 12 per cent of overall retail sales value of Chow Tai Fook's China operations by FY2025 from 9.5 per cent in June 2021. In addition, the group is making inroads in smart manufacturing. “We expect that 50 per cent of annual production will be completed through smart manufacturing and automation by FY2025, resulting in a 30 per cent increase in productivity annually,” it added.
Business in Hong Kong and Macau meanwhile are expected to stabilise, given an easing of the pandemic situation. The company said it will also focus on countries with a higher domestic consumption such as Kuala Lumpur, Malaysia and the Philippines, where it is planning to open new stores.