Chow Tai Seng Jewellery Company Limited
周大生
002867
Shenzhen Stock Exchange
Company Profile
1.Outstanding standardized operation and management ability of stores. Chow Tai Sang conducts standardized management on its franchisees, mainly focuses on the location of stores, qualification assessment, operation standards, set up process, shop images, training, regular supervision, marketing, pricing system, advertisement and other aspects, ensuring that its sales network has a high collaborative efficiency and is easy to duplicate and be applied to new stores. 2.The extraordinary ability on integration of its supply chain. Based on the fact that Shenzhen has already had a developed jewelry industry, Chow Tai Sang integrates the resources and concentrates on the construction of its brand and terminal channels that have high yields, and outsourcing other low-profitable sections such as manufacturing. 3. Its diamond products meet the requirements of mainstream market. The company exclusively introduced Belgium "LOVE100" series (ordinary diamonds have just 57 cutting surfaces, but the series has the incomparable 100 cutting surfaces) to greater China as its core products. The series is more glaring and is satisfactory for high-end customers. 4. A large number of stores are located in third and forth tier cities of China, and have a integrated structure. The company can directly benefit from the consumption upgrade policies of those cities. 5.With a number of IP cooperation to launch featured jewelry, Chow Tai Sang has cooperated with the national treasure, Potala Palace, Mount Putuo, HELLO KITTY, Pokemon, Tuzki, Van Gogh, Monet and other IP. 5.The brand matrix has been deepened and implemented, achieving simultaneous coverage of three core segments: high-end culture, mainstream market, and fashion differentiation.
Full description
1. Basic Information: Initially registered in Lo Wo, Shenzhen in 1990s, Chow Tai Sang mainly focus on jewelry designs, promotion and franchise management, and it is currently one of the most well-known jewelry brands and operators in China. 2. Main products: The main products of the company are gold jewelry, the core products are diamond jewelry, the company also sells K gold, platinum, jade, pearl, color treasure. 3. Sales Patterns: the company has three patterns of sales: franchise, self-operate and e-commerce. The self-operated stores are mainly located in first-tier and second-tier cities, and other areas are mainly operated by franchisee.Self-operation means that the company sells its jewelries to retail customers directly through exclusive shops, joint operation stores and e-commerce platforms. It has the ownership of these stores and also has to pay for all expenses occurred. Franchise means by signing Brand Franchising Contract with ChowTaiSang, franchisees can start their business in designated areas as long as they are in accordance with the business and management regulations. Once being approved, franchisees can operate their stores independently and have the control and ownership of their stores.As of March 31, 2023, the company has 4637 stores, including self operated and franchised stores. 4. Purchasing Patterns (1) Raw material: the company mainly purchases polished diamonds, gold and platinum. (2) Machining pattern: the company adopts consigned processing as its only machining pattern, which means after purchasing, the company sends the raw materials(including polished diamond, gold and platinum materials) to its chartered outsourcing manufacturers to produce under instructions. (3) Designated Supplier Model: The supply of traditional gold jewelry products through company franchise channels is generally completed through designated suppliers, with products limited to specified categories and standards. Designated suppliers and franchisees settle payments independently, and all selected products must pass internal company inspection and national/local inspection agency testing before being sold under the "ChowTaiSeng" brand. The company collects product brand usage fees based on a certain percentage of the weight, cost, or label price of product categories including gold/platinum, gold ornaments, velvet gold ornaments, K-gold, palladium, gold inlay, silver jewelry, jade, Hetian jade, and pearls. (4)Provincial gold exhibition and sale business: The company organizes suppliers to bring gold goods to the exhibition hall of provincial service providers, but in this link, the company will provide some short-term credit sale service to the franchisee. When the loan period is over, the franchisee will settle the payment directly with the company.