China’s H1 Gold Jewelry demand hits three-year high of 332.9 tons

(August 7, 2018 - by Scrap Register)

SHANGHAI (Scrap Register): Chinese gold jewelry demand extended its recent recovery, gaining 5% to 144.9 tons during the second quarter of this year and Year to date gold jewelry demand reached a three-year high of 332.9 tons, according to the World Gold Council.

The market followed familiar themes: consumers increasingly prefer innovative, creatively-designed pieces over traditional jewelry. While traditional, plain 24-carat jewelry continues to dominate the market– accounting for around 70% of gold jewelry demand– the shift towards alternative, newer products continued. 18ct, 22ct, 3D hard gold and premium higher-carat products, such as 9999s (99.99% pure gold) jewelry, performed well.

A greater emphasis on service and branding is paying dividends among increasingly discerning consumers. The fledgling trend towards more innovative promotion, marketing and customer service gathered pace in Q2, with positive results.

Retailers and manufacturers are investing much-needed resources into more effectively targeting and engaging key younger audiences. Jeweler CHJ Jewelry, for example, partnered exclusively with a popular TV series "Women in Beijing", which follows the lives of young ambitious women living in big cities.

Research conducted by Deloitte in 2017 mirrors the results of our own 2016 consumer research program, finding that millennials are less interested in heritage and tradition than in buying something unique and different.

The industry is alert to this trend and as it continues to address the need for more tailored, effective promotion and marketing, jewelry demand should benefit.