Chinese brands dominate the jewelry market

May 26, 2022

Abstract : Chow Tai Fook, which alone generates about 8% of the industry's turnover, Lao Feng Xiang, Lao Miao and Chow Sang Sang account for over 85% of the jewelry market, which increased by almost 8% to 11.7 billion euros in the first quarter

MILAN, May 26 (Class Editori) — Jewelry is the flagship of Made-in-China luxury. While Chinese consumers locally buy clothing and leather goods from imported brands, this is not the case for jewelry.

The jewelry lines of the major fashion houses account for less than 15% of the industry's turnover, which exceeded 80 billion dollars in the 2020-2021 period between physical and digital retail. Chinese people love local brands, particularly Chow Tai Fook —a jewelry chain founded in Hong Kong 90 years ago and listed on the local stock exchange, which alone generates about 8% of the industry’s turnover— Lao Feng Xiang, Lao Miao, and Chow Sang Sang.

Looking at the industry's performance, data from the National Bureau of Statistics of China show that, in the first quarter of 2022, China's jewelry industry reported a 7.6% increase year-on-year to 82.8 billion renminbi (11.7 billion euros).

Market turmoil is mainly due to zero-Covid-19 policies, which have led to lockdowns and closures in key cities such as Shenzhen and Shanghai. However, the industry is starting to see the light at the end of the tunnel, evidenced by a further recovery in May thanks to major events, including Chinese Mother's Day, celebrated on the second Sunday of May, and the unofficial "Chinese Valentine's Day," which is instead celebrated on May 20.

In terms of consumption by category, inlay jewelry overall seems to be preferred to plain gold jewelry, with bridal accessories sales outperforming those recorded during the Lunar New Year season.

This is partly due to the fact that events such as weddings are beginning to resume as restrictions are easing. Finally, small gold jewelry is very much in vogue among the younger generation because of its convenience. For example, collecting "gold beans" (gold jewelry shaped like beans) has become a trend for Millennials and Gen Z.

(Source:Class Editori)

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