In addition to obtaining the license of DTC, the world's largest rough diamond supplier, together with Zhou Shengsheng, Chow Tai Fook is also a special diamond dealer of Rio Tinto Diamond Company. This gives it a special advantage in raw materials, and establishes a vertical industrial chain from diamond procurement, distribution, cutting and polishing, processing and manufacturing to terminal sales except mining.
Secondly, the sales scale of Chow Tai Fook in China market can not be ignored. 1506 stores have 14 17 in the mainland. By the end of last year, Chow Tai Fook's market share in the Mainland reached 65,438+02.6%. Unlike Zhou Shengsheng, Luk Fook and other Hong Kong-owned jewelers, Chow Tai Fook has always kept the proportion of franchise stores within 20% to ensure the quality of products and services. However, at 20 10, this ratio was raised to 35%, which indicates that Chow Tai Fook's stable management style has changed, pointing to listing financing.
As stated in its prospectus, this financing is mainly used to expand the jewelry business in popular areas. 2065 438+02-2065 438+05, opening 200 jewelry retail stores every year, with second-and third-tier cities in the mainland as the expansion area. Among the 7 12 cities in the mainland, Chow Tai Fook has only opened retail stores in less than half of the cities, but this is the envy of international luxury brands and jewelers.
Another "amulet" is Chow Tai Fook's gold jewelry business rooted in the unique complex of Asians. Although Zheng Yutong began to break through the traditional gold shop model as early as 1960s and made great efforts in the diamond field, today, gold is still its main sales category. Since 1956, 999.9 pure gold pioneered by Chow Tai Fook has been stipulated by Hong Kong legislation as the fineness standard of gold jewelry in Hong Kong. Many investors will follow Chow Tai Fook's gold price for reference.
Based on the stable value-added ability of gold, gold ornaments are like stabilizers in jewelry sales. In 2007 and 2008, Chow Tai Fook's jewelry sales increased by about 30% on average, and he bought Yi Jinli against the market. In 2009, the sales of many Hong Kong jewelry peers were negative growth, but Chow Tai Fook jewelry still maintained a year-on-year growth of 15%. This is directly related to the rising demand for gold in the market. "The unstable global financial situation after the subprime mortgage crisis has increased people's demand for gold products. In China, other investment products have not performed very well in recent years, and gold has received more attention. " Zhang Bingnan, vice president of China Gold Association, told this magazine.
According to the statistics of the World Gold Council, China is the fastest growing gold and jewelry market in the world, second only to Indian. 20 1 1 In the first half of the year, China's gold consumption demand increased by 25% year-on-year. Although the gold rally slowed down in the second half of this year, according to industry estimates, gold jewelry consumption and investment will still show a steady growth trend in the next few years. For Chow Tai Fook, listing is probably just the beginning of the golden age.
Source: China Luxury Network:
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