Chow Tai Fook: A Chinese Jewellery Giant Changing Tactics
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Case Code: MKTG413 Case Length: 25 Pages Period: 1929-2020 Pub Date: 2020 Teaching Note: Available |
Price: Rs.500 Organization: Chow Tai Fook Jewellery Group Limited Industry: Retailing Countries: Hong Kong, China,United States, Singapore, Taiwan Themes: Channel Strategy & Development, Marketing Strategy, Branding Strategy, Product Management |
Abstract Case Intro 1 Case Intro 2 Excerpts
The Early Days of CTF
In 1929, Chow opened the first CTF jewellery store in Guangzhou, China, offering traditional Chinese gold jewellery. The Second Sino-Japanese War in 1931 led to a downturn in the Chinese market that prompted Chow to shift his business to Portuguese Macau. In 1938, he opened the first CTF store in Macau and in 1939 he opened another in Hong Kong. Within a year, the CTF stores became the top gold jewellery stores in the Hong Kong and Macau markets.
In the 1940s, Cheng Yu-Tung (Cheng) started work at CTF's Macau store as a trainee and within a short time rose to the position of Manager. In 1943, Cheng married Chow's daughter, Chow Tsui-Ying. The couple subsequently had four children. In 1956, Cheng inherited the business and took on the task of expanding it. Over the next 50 years, Cheng transformed CTF from a small jewellery chain to a household brand in China.
In the 1950s, there was no purity standard in the gold retail market. This made it difficult for customers to know whether the quality of gold they purchased was good or to make comparisons between products offered by different jewelers. Cheng offered a guarantee to customers that CTF provided products with 999.9 gold purity, which meant that the gold content in its jewelry was no less than 999.9 parts per 1000. The new standard was marked on all the pieces of jewellery sold by CTF. Thus, CTF became the first jewellery store in Hong Kong to offer a standard in gold...
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