8-6-2018
Chow Tai Fook (CTF) reported a 15 percent revenue growth to HK$59,156 million in 2018, buoyed by improving consumer sentiment and an uptick in mainland tourists.
Chairman Henry Cheng indicated the company had enjoyed a year of sales recovery in mainland China, Hong Kong and Macau. Despite store closing in touristic areas, revenue from Hong Kong and Macau jumped 7 percent to HK$20.63 billion. Five experience shops with theme opened and five more stores will open mainly in residential areas in the next year.
Sales in mainland China jumped 16 percent to HK$28.1 billion with tier two cities as the revenue stream, followed by tier three and four cities. The company plans to open around 295 point of sales in mainland China in 2019. Market penetration in lower-tier cities will be the priority to capitalise on the rapid urbanisation and infrastructural development in these areas. “Against the backdrop of the shifting retail landscape, we remain confident in the prospects of the Greater China jewellery market in FY 2019 and beyond,” said Chairman Henry Cheng.
A multi-brand strategy has implemented by the company to meet a wide spectrum of customer needs and tastes, six brands include House 1929, Hearts On Fire, Jewelria, CHOW TAI FOOK T MARK, SOINLOVE and MONOLOGUE. For a better retail experience, in-store experiences such as coffee shop and omni-channel retailing like sales channel on smartphones are established.
The chairman remarked, “Chow Tai Fook is proudly approaching the 90th anniversary. We will, as always, continue to uphold our leading edges to bring our business to fruition by meticulously executing our “Smart+ 2020” strategic framework. We believe that the customer-centric approach fortified with our iconic and trusted brand value would further solidify our status as the industry leader.” He shrugged off the retirement rumours and emphasised he would continue to be CTF's strategy planner at the CTF press conference.
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