Abstract

Established in 1929, Chow Tai Fook Jewellery Group (CTF) was not only among the most popular brands in the Chinese-speaking world but also one of the largest jewellry retailers in the world with over 7,400 points of sale, mainly in Mainland China, generating Group revenue about US$5 billion in early 2023.
Despite the COVID-19 pandemic and rising macro-economic headwinds, how did CTF achieve a resilient business performance? Two strategies based on retail expansion and smart retailing which automated the order fulfillment process and enhanced customer shopping experiences proved successful. Moreover, elevated product offerings through brand differentiation targeting different market segments such as high-end luxury, mass luxury and youth were also implemented.
As of 2023, would CTF’s strategy be robust enough to face the continuing economic and political challenges? Should it continue to expand? And is its current brand portfolio too broad?

Learning Objectives

After analyzing the case, students are expected to have an understanding of the followings:
1.Understand the key strategies and initiatives implemented by Chow Tai Fook Jewellery Group (CTF) to drive business growth
2.Analyze the competitive advantages and weaknesses of CTF in the jewellry market
3.Evaluate the opportunities and challenges in the Chinese jewellry market
4.Explore the importance of brand positioning and segmentation in the jewellry industry
5.Assess the impact of retail strategies to accelerate growth in China
6.Discuss the potential benefits and drawbacks of expanding into lower tier cities in China