MARKET WATCH 市场观察 JNA September/October 2024 | 49 Kent Wong, managing director of Chow Tai Fook Jewellery Group 周大福珠宝集团董事总经理黄绍基 jewellery manufacturing techniques such as 5D and 5G hard gold, which allow more flexibility and creativity in crafting modern and unique pieces that are particularly suitable for everyday wear. “Pure gold jewellery can now be set with diamonds, rubies, emeralds and other gemstones. The style of gold jewellery is more diversified than ever as more fashionable designs are being introduced,” said Nancy Wong, executive director and deputy CEO of Luk Fook Holdings (International) Ltd. Nancy explained that Lukfook is focused on developing a wider range of designs to entice consumers. For instance, Lukfook’s Heirloom Fortune Collection combines traditional techniques like filigree inlay with contemporary designs while its Goldstyle Collection showcases patented craftsmanship in stylish gold products. In addition, a range of lightweight gold jewellery options is available to help mitigate high gold prices, she added. “There is a shift towards more mindful consumption, indicating that consumers are seeking affordable yet valuable products. They are inclined towards purchasing gold due to its intrinsic value. Exceptional designs enhance perceived value and help products better resonate with consumers. This, in turn, inspires them to make a purchase,” said Kent of Chow Tai Fook. Chow Tai Fook unveiled its Rouge Collection in April 2024 in celebration of its 95th anniversary. It pieces together auspicious symbols of good fortune in the Chinese language and Chow Tai Fook’s signature red colour, effectively blending the brand’s essence with Chinese aesthetics. The captivating red hue was created in collaboration with the Pantone Color Institute. Kent explained, "While sales of price-by-weight gold jewellery declined, fixed-priced gold jewellery still sells, unaffected by gold price fluctuations. There is also a shift in consumer preference from diamond jewellery in 18-karat gold to diamond pieces in 24-karat gold. The success of The Wonderful Life Collection, which blends gold jewellery craftsmanship with our T MARK diamonds, underscored this trend.” Chow, for his part, said the “Guochao” style depicting Eastern aesthetics remains highly favoured by Chinese consumers. This was evident in Chow Sang Sang’s Cultural Blessings Collection featuring gold jewellery that pays homage to traditional Chinese symbols of luck and blessings. Despite a lacklustre demand for diamond jewellery, sales of the iconic Infini Love Collection increased, according to Chow. “Infini Love Collection represents approximately 40 per cent of overall diamond jewellery sales, up from around 30 per cent two years ago. This reflects consumers' willingness to purchase higher-priced products during special festivals or occasions,” he explained. Chow added that consumers in Hong Kong and Taiwan demonstrate more confidence in and understanding of diamonds compared to those in mainland China. Digitalisation As online sales continue to grow significantly, jewellers are strengthening their efforts and fortifying their digital strategies amid a shift in consumer behaviour. In addition to its e-commerce business, Lukfook has expanded its presence on popular social media platforms such as Xiaohongshu in recent years to boost sales, shared Nancy. Lukfook invested substantial resources in a marketing strategy known as “grass-planting” or “content seeding.” This approach encourages strong intent in purchasing products recommended by peers or influencers and yields better conversion rates compared to traditional advertisements. “This is specific to the Chinese market and has proven to be an effective way to connect with potential customers. I often go through their comments on our products and services, which help us evaluate and enhance our offerings,” explained Nancy. Chow Sang Sang, for its part, capitalised on the e-commerce boom during the pandemic by expanding its business from offline to online. It leveraged digital channels to tap overseas markets, specifically targeting Chinese consumers residing abroad as well as Chinese buyers with well-established online shopping habits. “Online sales in mainland China maintained its growth trajectory and accounted for almost 20 per cent of total sales in China. Of this, 20 per cent was from regions where we do not have physical shops. E-commerce enables us to penetrate the market as a non-franchise business,” Chow said. Meanwhile, Kent of Chow Tai Fook said the company leverages data gathered from the consumption journey to enhance product management and customer experiences. “Every store visit and transaction leaves a valuable trail of data that enables us to accurately manage the end-toend product portfolio and even predict future trends,“ the company official explained. "We collect data, manage and analyse it, then use the insights drawn from the data to plan production, determine which products to offer in specific store locations and at which price points," he added.
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