Home
The Feed
Your selections:
China's jewellery retailers take guochao to lower-tier cities | WARC | The Feed
The Feed
Read daily effectiveness insights and the latest marketing news, curated by WARC’s editors.
You didn’t return any results. Please clear your filters.
China's jewellery retailers take guochao to lower-tier cities
Personal accessories
Luxury retail
Greater China
Building on the popularity of guochao (or ‘China-chic’), some of China’s biggest jewellery retailers are expanding their physical footprint into lower-tier cities.
What’s happening
- By 2025, jewellery retailer Chow Tai Fook is planning to add another 2,000 outlets to its existing total of more than 5,000 in 660 cities; many of these will be in third- or fourth-tier cities.The focus will be on “affordable luxury” with average prices of around Rmb10,000 ($1,575), the Financial Times reports.
- Lukfook Jewellery plans to open as many as 350 new outlets this year, many in lower-tier cities. At the same time it is expanding its e-commerce operations to reach younger generations.
Context
- More than half the sales of Chow Tai Fook’s heritage collection, inspired by the traditional emblems of emperors and empresses, went to Millennial and Gen Z buyers in Q2 and Q3 2021.
- China’s personal luxury goods market doubled in size between 2019 and 2021 to about $69bn, according to figures from management consulting firm Bain & Company.
- Reduced travel options have meant fewer purchases being made outside mainland China.
- Luxury Swiss jeweller Richemont this week reported Q3 sales growth in China slowing to 7%.
Final thought
“[Gen Z] likes different types of jewellery . . . their preference for the design of Chinese cultural elements could also rise during times of high international tensions” – Xianchi Dai, associate professor of marketing at the Chinese University of Hong Kong, speaking to the FT.
Sourced from Financial Times, Reuters [Image: Chowtaifook.com]
Email this content