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A Silent Giant: Chow Tai Fook
The story of a family-run Asian business that has managed to surpass Cartier, Tiffany and Rolex in the Chinese market without making a sound
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It may come as a surprise to many that the largest jewellery retailer in the world is another made-in-Hong Kong success story – Chow Tai Fook. The largest listed jewellery chain in the world at almost US$14 billion market capitalisation (surpassing Tiffany & Co by around US$5 billion), Chow Tai Fook operates more than 1,800 stores in over 320 cities across Southeast Asia. |
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At the helm of the company is the legendary Cheng Yu-tung, Hong Kong’s fourth-richest tycoon and, according to Forbes, one of Asia’s great post-war titans of commerce. Cheng, the son-in-law of founder Chow Chi Yuen, helped to expand the business, which was first set up in 1929. Today, the jewellery group falls under the bigger conglomerate of Chow Tai Fook Enterprises, controlled by Cheng and his family now in its third generation of management. The holding company is also the majority shareholder of New World Development, the company behind the Renaissance and Ramada hotels, and whose investment projects include the Grand Hyatt Hong Kong, Sogo Department Store in Tsim Sha Tsui, and its neighbouring Renaissance Harbourview Hotel. |
A factor contributing to Chow Tai Fook’s success is its aggressive penetration into the mainland China market at the right time. The company entered smaller cities (aside from hubs such as Beijing and Shanghai) just as the country’s growing middle class were starting to yearn for quality jewellery. Chow Tai Fook’s three principal products hit the sweet spot as well: gold, a traditional investment in Asia; luxury watches, which are increasingly seen as a status symbol; and diamonds. And the acceptance of the notion that the diamond ring represents ultimate commitment and love between engaged and married couples in China has emerged as one of the great 21st century marketing conquests.
Chow Tai Fook was there to provide the right products for the luxury mass market at the right time, and took advantage of the explosive expansion of the country’s economy over the past few decades. Just as importantly, as a Hong Kong brand, Chow Tai Fook was also able to earn the trust of millions of mainland customers; this was crucial in an environment of rampant fake jewellery and watches. This value for authenticity is certainly in Chow Tai Fook’s omnipresent display on Hong Kong’s billboards and buses: “Trust and Eternity”, linking its position in the wedding industry with its own brand promise. And it doesn’t hurt either that Chow Tai Fook also happens to own two of the largest public bus companies in Hong Kong: Citybus and First World.
The giant may be a silent one, but it certainly isn’t sleeping – Chow Tai Fook has surpassed its international competitors despite being almost a century behind them – who knows how far it will go with so much potential still untapped?
