Jay Gems Inc., a subsidiary of Renaissance Global Limited and exclusive licensee of Enchanted Disney Fine Jewelry, has signed an agreement with Lao Feng Xiang, China’s second largest jewellery retailer, to launch Enchanted Disney Fine Jewelry in retail stores in Mainland China.
The launch into China, the world’s second biggest jewellery market, is a great move for the Renaissance Global strategy of geographic diversification. The increased distribution for the Enchanted Disney Fine Jewelry brand also represents significant growth for Renaissance’s branded jewellery Segment.
Lao Feng Xiang (LFX) is a retail jewellery brand in China, with 166 years of continuous operation and annual revenue of more than USD6.5 billion. LFX, headquartered in Shanghai province, operates over 3,700 stores worldwide, including stores in almost every province in Mainland China. The Lao Feng Xiang brand has been shortlisted in the “Shanghai Top 100 Enterprises List”, Fortune’s “China Top 500” and “The World’s 100 Largest Luxury Companies”.
“We are honoured to partner with a retailer who has the sterling reputation and impressive market reach of Lao Feng Xiang,” said Sumit Shah, Vice Chairman, Renaissance Global Ltd. “The Enchanted Disney Fine Jewelry Brand will now be available to consumers throughout China.”
According to IBIS World Industry Research, China’s jewellery market is estimated to be worth USD118 billion. China’s jewellery market is growing steadily, with a compound annual growth rate of 6.7% from 2014 to 2019. Renaissance Global Group has pursued a successful strategy of geographic diversification: in FY2011, 85% of the company’s revenue came from the United States market. By FY2019, the revenue from the U.S. market was reduced to 57%.
“With an established retail partner like LFX, we are situated to expand sales in the Chinese market, drawing on our strong design and product development capabilities,” Shah says. “This will further increase the geographic diversification of our sales and decrease the importance and the risks associated with any individual market.”
Disney Consumer Products is the biggest licensing company in the world with 2018 global sales of USD59 billion, including USD5.5 billion for the Disney Princess brand.