The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Hong Kong-based jewellery giant, Chow Tai Fook, saw retail sales climb 152.6 percent in the three months to March 31, year-on-year, the company said in an operational update.
Retail sales in mainland China rose 13.7 percent on the year and same store sales increased 141.2 percent. Hong Kong, Macau and other markets also saw retail sales growth of 46.6 percent, year-on-year. The update acknowledges that this growth comes of an “exceptionally low base” given the situation in mainland China, Hong Kong and Macau during the first three months of last year, when retail was severely impacted by Covid-19 outbreaks.
This is particularly true for brands like Chow Tai Fook, which rely on extensive offline retail networks to reach customers. As of March 31, the group had 4,591 points of sale in total, and had increased its net mainland China points of sale by 150 since the start of the year.
The French beauty giant’s two latest deals are part of a wider M&A push by global players to capture a larger slice of the China market, targeting buzzy high-end brands that offer products with distinctive Chinese elements.
Post-Covid spend by US tourists in Europe has surged past 2019 levels. Chinese travellers, by contrast, have largely favoured domestic and regional destinations like Hong Kong, Singapore and Japan.
While travel to Europe remains muted, Chinese shoppers are flocking to Singapore, Thailand and other Southeast Asian destinations where fashion retailers are hoping Lunar New Year marketing investments will pay off.
Local fashion designers experimenting with puffers and other down clothing have scored collaborations with outerwear companies like Moncler and attracted the attention of prominent international retailers like H.Lorenzo.