Chow Tai Fook, the world’s largest jewelry and watch group, has returned to growth after a 17.5% sales decline in the prior year, signaling a potential recovery in Chinese consumer spending. For overseas jewelry buyers, this rebound offers early indicators of demand trends in mainland China and Hong Kong, key markets for luxury accessories and timepieces.
Sales and revenue breakdown
For the fiscal year ending March 31, 2026, Chow Tai Fook generated HK$94.4 billion ($12 billion) in sales, with 80% from mainland China and the remainder from Hong Kong and Macau. Fixed-price jewelry contributed 31.5% of revenue, while weight-based gold jewelry accounted for 64.2%. Watches made up 4.3% of sales, down from 6% in FY22, but still worth over HK$4 billion ($516 million). Operating profit rose 28% to HK$18 billion ($2.3 billion).
Supply-chain impact
Chow Tai Fook’s heavy reliance on gold jewelry (over 64% of revenue) underscores sustained demand for gold-based products in the Chinese market. For suppliers of gold jewelry, findings, and packaging, this signals continued opportunities in weight-based gold categories. The group’s watch segment, though smaller, remains a significant channel for Swiss timepieces, with five Rolex points of sale and nine Tudor locations.
What buyers should watch
Overseas buyers should monitor Chow Tai Fook’s performance as a proxy for luxury spending in China and Hong Kong. Swiss watch exports to Hong Kong rose 2.5% in the first four months of 2026, and to China by 3.5%, suggesting gradual recovery. However, the decade-long contraction in Swiss watch exports to the region means buyers should remain cautious about long-term demand. The group’s growth may also influence sourcing strategies for gold and diamond jewelry components.
Compliance and logistics signals
Chow Tai Fook’s return to growth may ease some supply-chain pressures for jewelry importers, particularly for gold and gemstone products. However, buyers should stay alert to any shifts in Chinese trade policies or tariffs that could affect cross-border logistics. The group’s strong operating profit suggests healthy margins, which could lead to increased orders for OEM/ODM services and packaging solutions.
Source: Read the original report | Published: June 11, 2026