By most accounts, China’s retail scene is stirring once again. With the country slowly opening up, pent-up demand from the virus-induced lockdown could spell a potential surge in the retail of luxury goods. 

Hermès is a case in point. When the luxury brand reopened its Guangzhou store in mid-April, it raked in US$2.7 million in sales in a single day. Closer to home, diamond manufacturers and dealers are heartened by signs of activity in the Chinese market. 

And despite the challenges brought by the Covid-19 outbreak, China never really lost its shine among jewellery brands and establishments. Instead the market continually yields new geographic and demographic opportunities. 

Many jewellery retailers are setting their sights beyond Tier 1 and Tier 2 cities, where they have already established 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 the last two years, it has ramped up its expansion into lower-tier and county-level cities. In similar fashion, Lukfook aims to grow its presence in China beyond its current stores in top-tier cities including Beijing, Shanghai, Tianjin and Chongqing. 

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. 

-    Full story in JNA May/June 2020. To get your print copy, please email [email protected].