The rebounding tourism sector not only gives a boost to local hotels and tourism-related businesses, but also to Chinese jewellery brand Chow Tai Fook as the Hong Kong-listed firm aims to capitalise on the growth of affluent Chinese travellers and a growing middle class in Southeast Asia.
Chow Tai Fook Jewellery (CTFJ) Group, which operates more than 6,000 stores and employs 25,900 people globally, is preparing the soft launch of its new concept store at Siam Paragon mall in Bangkok, the second of its kind in the region after Singapore.
The brand made inroads in the Thai market six years ago and now operates five points of sale, including at Suvarnabhumi and Don Mueang airports, two at King Power duty-free shops and one at Central Phuket.
The new Paragon branch is slated to open in January, said Gabriela Ferreira, general manager for international business at CTFJ.
Other than Thailand, the group has seven points of sale in Singapore and seven in Malaysia, along with sales channels in the Philippines and Cambodia.
“We do believe this is a natural strategic move for us to continue to expand overseas when the opportunity arrives,” Ms Ferreira told a group of Thai journalists visiting CTFJ’s manufacturing, design and distribution facilities in Shunde district, Foshan in Guangdong province.
“This is the perfect time for us to expand abroad, when we have fantastic brand transformation momentum. We are also leveraging Thailand’s rebounding tourism, tapping into affluent tourists to strengthen our brand visibility across the market.”
She said Thailand is estimated to welcome more than 35 million international arrivals this year, marking a strong rebound, with the top three source markets China, Malaysia and India.
There is a significant number of ethnic Chinese across Southeast Asia, where the middle class has been growing, said Ms Ferreira.
All of these factors represent growth drivers for established Chinese brands such as CTFJ because consumers have increased disposable income and a strong Chinese cultural affinity, she said.
“The new concept store at Siam Paragon provides a luxury shopping experience for our customers, featuring our brand in the market to capture the interest of tourists as well as local shoppers in Bangkok,” said Ms Ferreira.
OVERSEAS EXPANSION
She said the international market in the last fiscal year recorded retail sales value growth of 9.4% year-on-year, driven by Singapore, Malaysia and Thailand.
The expansion of retail outlets abroad followed the group opening eight new image stores across Hong Kong, Shenzhen, Wuhan, Shanghai and Beijing in fiscal 2025.
Building on its Chinese heritage, Chow Tai Fook celebrates its 100th anniversary in 2029 and wants to be known as the top Chinese brand of its kind globally, said Ms Ferreira.
“For international business, we have three channels, with the direct retail market used in Singapore and Malaysia. We also have a franchise channel. In markets like Thailand, we work with local partners in the market to select locations and build a network, allowing them to do market penetration for us guided by brand principles,” she said.
“The final channel is the travel retail business, operated through points of sale at airports and cruises — basically the duty-free environment.”
Supporting CTFJ’s expansion is research done by Australia-based independent consultancy Bluebell, which found 86% of Chinese customers and a substantial majority across Southeast Asia believe luxury products from Asian brands match Western brands in terms of quality and accessibility.
Ms Ferreira said the overseas expansion of CTFJ is driven by a two-pronged strategy: to revitalise existing locations and markets, and expand its presence in high-potential new territories to achieve sustainable growth.
Beyond Southeast Asia, the company operates stores in the US and Canada, including in Los Angeles, Vancouver and Toronto.
“When we open a new image store, it has to be in a prime location,” she said.
“With our strategic expansion plan in Southeast Asia, we believe there’s more to come, and we’re very ambitious to grab opportunities for growth.”