Sou Hu Cai Jing·2025-12-20 06:38Core Viewpoint - Chow Tai Fook has announced a price increase for its "Chuanfu" series jewelry, marking the third price adjustment within the year, with price hikes ranging from 5% to 15% across various products [3][4]. Group 1: Price Adjustments - The price increase is primarily focused on Chow Tai Fook's "one-price" gold products, particularly the "Chuanfu" series, with online listings indicating that nearly half of these products will see a price rise [3]. - The adjustment will also be reflected in physical stores, with new price tags already arriving at locations, and some products being updated on the same day as the announcement [3]. - The company stated that price adjustments are part of its regular operational strategy, responding to market conditions and product demand [3][4]. Group 2: Market Context - Since 2025, international gold prices have been on the rise, prompting various jewelry brands, including Chow Tai Fook, to increase their prices, with competitors like Chow Sang Sang and Lao Feng Xiang also raising prices by 6% to 10% [4]. - Chow Tai Fook's gold price has surged from 805 RMB per gram at the beginning of the year to 1353 RMB per gram by December 19, reflecting an increase of nearly 68% [4]. Group 3: Business Performance - The performance of gold jewelry companies has shown significant divergence, with Lao Pu Gold reporting a revenue of 12.354 billion RMB, a year-on-year increase of 251%, while other brands like Zhou Dazheng experienced a revenue decline of 43.9% [5]. - In response to market pressures, many companies are shifting focus towards high-margin "one-price" products and the high-end market segment [5][6]. - Chow Tai Fook's sales from fixed-price jewelry reached 3.4 billion HKD, with the contribution from fixed-price retail in mainland China increasing from 27.4% to 31.8% year-on-year [5]. Group 4: Consumer Behavior - Consumer reactions to the price hikes are mixed, with some buyers acting quickly to purchase before increases, while others are opting to wait or forgo purchases altogether [6]. - The frequent price adjustments are testing consumer acceptance of the "one-price" model, raising questions about the brand's value proposition versus gold price fluctuations [6].