Chow Tai Fook Buys Chinese Retailer Enzo

RAPAPORT... Chow Tai Fook has acquired Enzo Jewelry, a colored-gemstone brand with around 60 retail locations in mainland China.Enzo, founded in 2004, targets "modern, sophisticated and self-confident women who demand fashionable jewelry with a highly distinctive style," Hong Kong-based Chow Tai Fook noted Friday. The brand aims to grow in mainland China through self-operated and franchise stores, adding to its existing network mainly spanning China's tier-one and tier-two cities. It also has a sizeable presence on major e-commerce platforms such as Tmall, JD.com and VIP.com, Chow Tai Fook continued."Enzo will continue its niche position as a natural colored-gem specialist to complement the group's multi-brand strategy, enabling us to further venture into the colored-gemstone arena," said Chow Tai Fook executive director Adrian Cheng.The move reflects Chow Tai Fook's increased focus on mainland China, where its retail sales rose 17% in the three months ending December 31. Sales slumped 38% in Hong Kong for the same period. The jeweler opened a net 279 points of sales on the mainland during the quarter, compared with two in Hong Kong, and is considering shutting up to 15 stores in the municipality by March 2021.Image: An Enzo pop-up store at the Metro City shopping mall, Shanghai. (Chow Tai Fook)