# Jewelry Industry

Tarnished Silver: Zhou Liufu’s Quality Crisis Exposes the Frailty of China’s Jewelry Franchise Giants

Chinese jewelry giant Zhou Liufu is reeling from a quality scandal that has exposed the risks of its 100% outsourced, franchise-heavy business model. With massive store closures and a stock price trading 28% below its IPO, the company's reliance on rapid, asset-light expansion is facing its most significant test to date.