Hong Kong’s Lukfook Jewellery has detailed plans to expand in the Australian market. The company has more than 2,900 stores worldwide and opened its first store in Australia in 2013. Its national store count currently stands at eight, with plans to expand to 13.
Lukfook deputy chief executive Nancy Wong told the Australian Financial Review that the company was confident that the country's demographics would support this expansion.
“Australia has a lot of Hong Kong immigrants, and also mainland Chinese people, so we have a reputation and brand recognition in the Australian market already. That’s why we see huge growth potential in Australia,” she said.
The report noted data from the Australian Bureau of Statistics (ABS) which indicate that more than 800,000 Australian residents were born in China or Hong Kong, with almost 1.4 million Australians having Chinese ancestry.
The company's stores in Australia reportedly generated more than $40 million in revenue during the year to March, representing roughly one-fifth of the group’s revenue outside mainland China, Hong Kong and Macau.
Earlier this year, Lukfook’s primary competitor, Chow Tai Fook announced plans to enter the Australian market and opened its first store in March in Sydney. Chow Tai Fook operates more than 5,000 stores worldwide. At the time, Chow Tai Fook’s Sonia Cheng described expansion into Australia as part of a broader ambition to establish the jeweller as a global leader of luxury.
According to the report, Lukfook’s Wong said that with the markets in China and Hong Kong already dominated by thousands of chain stores, both companies needed to look outward for growth.
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