Hong Kong — Chow Tai Fook, the renowned jewelry retailer, has reported a substantial 46% year-on-year increase in sales for the three months ending December 31, marking a robust recovery driven by heightened tourist activity and festive season demand. The surge in sales comes as a continuation of the positive momentum gained since the reopening of the border between Hong Kong and China in early 2023.
A significant portion of Hong Kong’s luxury revenue is historically derived from mainland Chinese tourists seeking to make purchases in the region. The reopening of the border has evidently contributed to the remarkable rebound in sales for Chow Tai Fook.
The company highlighted that sales were buoyed not only by the influx of tourists but also by strong pre-festive season purchasing patterns, where the tradition of buying gold during this period played a role. Additionally, the success of a new diamond campaign and the launch of a well-received collection further bolstered sales figures.
Breaking down the geographical distribution of sales, retail sales experienced a commendable 42% growth on the mainland, constituting approximately 84% of the total proceeds. Meanwhile, sales witnessed an impressive 71% surge in Hong Kong, Macau, and other markets.
Chow Tai Fook also provided insights into same-store sales performance, revealing a noteworthy 23% climb in China, while Hong Kong and Macau saw an even more remarkable 67% spike. In terms of product categories, gold products took center stage with a remarkable 33% rise in same-store sales on the mainland. In Hong Kong and Macau, the sales of gold jewelry soared by an astounding 104%, while gem-set jewelry experienced a positive upswing of 4.3%.
The report underscores the resilience of the luxury retail sector, particularly in regions like Hong Kong, where tourism plays a pivotal role in driving sales. Chow Tai Fook’s strategic initiatives, including the new diamond campaign and collection launch, have evidently struck a chord with consumers, contributing to the brand’s remarkable sales growth during this period of recovery.
