JNA May/June 2020

專題報道 JNA May/Jun 2020 | 21 Many jewellery retailers are setting their sights beyond Tier 1 and Tier 2 cities, where they already have firm footholds. Chow Tai Fook has over 3,500 shops in China, more than half of which are located in first- and second-tier cities. In recent years, it has ramped up its expansion into lower-tier and county-level cities. In similar fashion, Lukfook Jewellery aims to grow its presence in China beyond its current stores in top-tier cities including Beijing, Shanghai, Tianjin and Chongqing. Chinese consumers often start their jewellery journey with solid gold pieces before acquiring smaller diamond jewellery pieces. As their tastes mature, they move on to bigger diamond jewellery and then those adorned with coloured gemstones. Tier 1 and Tier 2 cities are generally in the last two stages of jewellery acquisition. In contrast, gold and smaller diamond pieces move well in lower-tier cities that are just beginning their love affair with jewellery. Brand names with more points of sale in the city also flourish as quantity is often equated with reliability. In addition, consumers in northern China are more likely to buy bigger and bolder jewellery pieces than their counterparts in the south. Digital endeavours China’s digitally savvy generation of consumers likewise offers room for business creativity and growth. De Beers’ diamond jewellery brand Forevermark launched in January its first-ever Next Generation Retail Concept boutique in partnership with Beijing Cai Shi Kou Department Store Co Ltd or Caibai. The store includes digital features such as a "discovery wall" and interactive "discovery bars." Lukfook, for its part, intends to promote affordable luxury jewellery products to China’s young, tech-savvy buyers to gain a stronger foothold in the market. The online-to-offline-to-online (O2O2O) business model continues to deliver strong results for jewellery establishments. Bobby Liu, executive director of Chow Tai Fook, said, "Consumers are constantly embracing new social concepts and technologies and renewing their understanding of experience, aesthetic appreciation and lifestyle. Thanks to the rapid development and enhancement of online retail stores, as well as various digital marketing campaigns, diversified social media channels and the emerging online touch points such as live streaming, our brand successfully draws the customers to offline shops to experience the real products and services along with dedicated customer service that fosters customer loyalty and repeated purchase. Customers are afforded the flexibility to complete the transactions online or offline." The O2O2O model continually evolves though. Retailers experiment with different variations to suit changing buying patterns, from the "Brick + Mouse" model of online shopping to the "Brick + Smartphone" concept of mobile purchases. Widespread Internet and 4G/5G networks have boosted social and mobile shopping by making it easier to view merchandise on mobile devices. Online stores and social media now serve as broadcast channels, with physical shops, points of sale and showrooms accommodating viewing, delivery and payment of jewellery. Mobile, social and Internet research often precedes purchase decisions whether online or at stores. Lower- ticket items however move faster online. While Chow Tai Fook’s digital strategy covers 90 e-commerce channels, its online sales account for 4.9 per cent of retail sales value and 14.1 per cent of retail sales volume as of September 30, 2019. Many consumers still prefer to view higher-value jewellery pieces costing over RMB 2,000 (around US$283) physically prior to purchase. T MARK diamond jewellery brand by Chow Tai Fook Jewellery Group Ltd 周大福的 T MARK 鑽飾品牌

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