Big Hong Kong jeweller sets sights on Tokyo – to capture sales from Chinese tourists
The move to a duty-free outlet in fashionable Shinjuku comes amid decline in mainland visitors to Hong Kong and a surge in those travelling to Japan
Hong Kong’s largest jeweller, Chow Tai Fook, is seeking custom from mainland shoppers in Japan in a bid to capture growing demand there by Chinese travellers amid slow business in Hong Kong and Beijing’s travel ban on group tours to South Korea.
An 820 sq ft Chow Tai Fook-branded shop will open later this year at the outlet of Japanese duty-free store operator Laox in Shinjuku – one of the Chinese visitors’ favourite shopping destinations in Tokyo.
Its move follows several years of losing business in Hong Kong, with the jeweller’s sales slipping 25.7 per cent in the six months to last September.
Analysts attribute the slump to more diversified travel choices for mainland Chinese tourists due to easier visa application procedures. Japan and – at least until recently – South Korea were the new darlings of the market.
“Seeking to tap into growing demand for leisure spending by Chinese, we are thrilled to partner with Laox … Shinjuku serves as a major economic centre in Tokyo. Together with opportunities arising from the 2020 Tokyo Olympics, we see great business potential in the Japanese market,” Chow Tai Fook managing director Kent Wong said.
Chinese visitor numbers to Japan continued to climb, hitting 24.04 million in 2016, up 22 per cent from the previous year. By contrast, the number of mainland travellers to Hong Kong fell for a second year, dipping 4.5 per cent last year.
