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Chow Tai Fook subsidiary inks JV agreement with two firms

Hong Kong-based luxury jeweler Chow Tai Fook Jewellery Group Ltd. said May 26 that its indirect wholly owned subsidiary Solomon Trademark Management Ltd. has signed a joint venture agreement to develop and operate a group loyalty program in mainland China and Hong Kong.

Solomon entered into the agreement with Golden Image Ltd., a subsidiary of New World Development Co. Ltd., and Edge Global Investments Ltd., a subsidiary of Chow Tai Fook Enterprises Ltd.

Solomon and Golden Image will each own a 40% stake in the joint venture while Edge Global Investments will own the remaining 20%.

The group loyalty program to be rolled out by the companies will allow customers who purchase products or services from the joint venture partners to collect bonus points and redeem benefits.

Chow Tai Fook said the program will be beneficial for the participating entities because it will increase cross-selling among them, which can boost sales, and help them understand customers' needs better.

The company also said Solomon plans to contribute an initial capital of HK$40 million to the joint venture through share subscription and shareholder loan, to develop the IT infrastructure, marketing and operations of the program.