According to Chan Sai Cheong, director of Chow Tai Fook Group and its general manager for China region, the Hong Kong jewelry brand plans to double the number of its Chinese mainland stores to 2,000 in the next ten years, focusing on the development of franchised stores.
With the development of directly-owned stores, franchised stores and other retail arrangements, Chow Tai Fook has opened over 1,000 sales sites already on the Chinese mainland; and its annual sales reached over CNY30 billion last year.
Chan said that with the fast growth of the Chinese mainland market, Chow Tai Fook, taking advantage of its leading position in the jewelry market, will accelerate its expansion and increase retail sites. At the end of 2010, the ratio of Chow Tai Fook's franchised stores, direct stores, and other cooperating stores is 25%, 53%, and 22%. To accelerate its expansion, Chow Tai Fook will focus on the development of franchised stores in the future to increase its ratio from the current 25% to 35%.
Chan said branding is very important for expanding the Chinese mainland market. Therefore, the company will increase its investment in branding. The company spent CNY200 million on brand marketing in 2010.