Modern couples are increasingly not walking down the beaten path of their elders and are falling less for the bling of diamonds. Trend of non-diamond engagement rings is catching on fast. Among others, an important reason is affordability and price. This may be what has prompted world’s largest jeweler Chow Tai Fook in diversifying into low-priced jewelry and enabled fashion jeweler Pandora to grow, with its recent entry in Indian markets.
Chow Tai Fook diversifies with lower-priced collection
Chow Tai Fook is coming up with multiple ways to widen its customer base in order to fight against falling sale. One of them is targeting younger customers with low priced jewelry stores. These new shops will have jewelry pieces worth 2,000 Yuan (~USD 300) on average. Whereas, their flagship Chow Tai Fook store stores collection three times more expensive. Such a low price store was first opened in September in southern city of Shenzhen and six more are lined for this year in other parts of China. Pandora’s already low priced collection such as silver trinkets and charm bracelets are attracting the same set of customers in China and its sales seem to be increasing.
Chow Tai Fook has over 2,000 outlets of jewelry and high-end watched, majority of them in Greater China. The Hong Kong based, world’s largest, 88 year old jeweler is turning its brand towards younger generation and diversification, according to its Managing Director Kent Wong. He said,
“We don’t expect the new shops to provide huge sales contributions as they are selling lower-priced products. But we have to do it or we’ll lose the young customers.”
To arrest falling sales further from country’s economic slowdown and anti-corruption trend, the company is taking customer shopping behavior more seriously and going below in the market to reach out to more customers. Mr. Wong said that the company is also going to open a wedding jewelry special store in Hangzhou in April. Last year the company declared its plans of widening online presence and reaching out to U.S., Taiwan and South Korean market. Hannah Li, a Hong Kong-based analyst said,
“Introducing low-end products in stores that are distinct from Chow Tai Fook will keep the company’s premium image from being tarnished.”
Danish Jeweler Pandora enters Indian market
Pandora – Danish Jewelry Company which designs, manufactures and markets hand finished contemporary jewelry accessories at affordable price yet made of high quality material is foraying into Indian market. Pandora looks at Indian Jewelry market as big as USD 40 Billion a year and anticipates 7% growth per year till 2021.
Gold and Diamonds have been Indians’ obsession compared to silver which is Pandora’s prime material and has only 5% of the market. But changing consumer trends, especially among youngsters might be a reason for Pandora’s India move.
Pandora opened around 325 shops across the world last year, Europe having half of them and reached a count of 2,010 by the end of last September. It plans to open 50 concept stores and shop-in-shops in India. This target is for next three years with focus on Delhi, Mumbai and Bangalore. Michael Friis Jorgensen, analyst of Alm. Brand Bank said,
“The expansion into India will greatly support Pandora in achieving the target it has set up for new shops”.
Whereas Chief Executive of Pandora – Anders Colding Friis talked about India’s huge potential for Pandora. He further said,
“Retailing and conceptual sales in India is developing at a fast pace.”
The exclusive distribution right of Pandora jewelry in India is with Pan India Charms & Jewellery.