Lukfook’s executive director and deputy CEO Nancy Wong
Luk Fook Holdings (International) Ltd said it wants to effectively promote affordable luxury jewellery products to China's young, tech-savvy buyers to gain a stronger foothold in this consumer market.
In a talk with JNA, Lukfook’s executive director and deputy CEO Nancy Wong said the company is looking to take advantage of the younger generation's growing spending potential as part of a three-year corporate blueprint involving supply chain management, China market expansion and strategic growth.
Alongside this initiative are plans to further develop its online business and strengthen cooperation with e-commerce platforms in China. It is also looking at implementing higher-level automation and big data management in its operations to improve productivity and operational efficiency.
While the spread of Covid-19 derailed sales in major markets, the company mentioned that expansion plans were only slightly affected, noting that net shop additions for the current financial year would only be a bit less than the target of 300 shops.
The company also highlighted advantages that top jewellery markets China and Hong Kong continue to offer amid more challenging times.
What makes Hong Kong competitive are its tax-friendly systems, free trade policy as well as quality assurance. China meanwhile offers huge opportunities, thanks to the growing spending power of middle-class buyers, economic advancement of lower-tier cities, continued development of e-commerce business as well as strong demand for luxury products.
“The group has already installed shops in the first- and second-tier cities of China namely Beijing, Shanghai, Tianjin and Chongqing, among others,” noted Wong. “Lower-tier cities hold great market potential and strong demand for gold. Therefore, we are also keen on branching out in promising lower-tier cities that remain untapped.”
Compared to China however, retail shops in Hong Kong are bigger on average and offer a wider variety of product selections. There’s also a higher mix of gem-set products in Hong Kong, which is considered a more mature market.