A visitor's rapt attention is focused on a Hello Kitty figurine decorated by Swarovski in Guangzhou, April 28, 2015.[Photo/VCG]

"Our main focus is to keep expanding into third- and fourth-tier cities because the retail landscape is becoming more mature in these locations," explained Francis Belin, Senior Vice-president of Asia Pacific at Swarovski. "We see more opportunities to open stores there."

Swarovski believes that increasing distribution and accessibility of the brand are crucial elements to keep its expansion.

For this reason, the company is drafting an online strategy to drive sales up.

Last year, the company was one of the first foreign jewelry brands to open a storefront on Alibaba Group Holding's online marketplace Tmall.com.

Department stores and specialized jewelry retailers remain the leading distribution channels for jewelry in China, explained Huo of Euromonitor. "However, Internet retailing continues to increase dynamically."

Swarovski, which also sells products online through its own website, remains cautious over its online strategy because Chinese customers still prefer to visit their shops to check first-hand the volume, shape and characteristics of the pieces.

"For online purchases, we see limited growth now. Currently, less than 10 percent of our sales in China come from online channels," said Belin. However, at some point this year or next year, we will start exploring other options to team up with other online players."

With around a third of its total revenues coming from Chinese consumers, including purchases overseas done by Chinese travelers, China remains a crucial market for the brand.