Jeweler Plans More Outlets
To cash in on the rising demand for luxury jewelry, Luk Fook Group.the Hong Kong-listed jeweler, has put more stores on its mainland expansion schedule this year.
With 335 shops on the mainland, only 9 are self-operated, six more self-operated shops will be opened in first-tier cities such as Beijing and Shanghai this year to generate more profit.
Thanks to the fast growing mainland economy and the rising purchasing power of the middle class, the demand for luxury has shot up, which made the market big enough for Jewelers like Luk Fook Group to expand the number of shops 10 times there, hoping for a 30 to 40% turnover.
On the other hand, robust economy ,increasing wages, and money flooding from mainland has all acted as major boosters to the firm’s Hong Kong business, according to William Wong, CEO of the company, half of the turnover from the retail shops comes from mainland tourists, who always look for the most expensive products.
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I’m an American living in Beijing. China is really a great country whose economy develops at a high speed. The Chinese people have obviously benefited a lot from the country’s reform and opening-up policy. Particularly the consumer market has registered strong momentum of growth.