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JEWELRY IN CHINA: A MARKET FULL OF NEW INTERESTING TRENDS FOR BRANDS

2020/08/18


In global comparison, most revenue in the Jewelry segment is generated in China (US$17,961m in 2020). The market is expected to grow annually by 4.2% (CAGR 2020-2023).

 

With such a large number of “New rich” with high spending potential, and with an increase in the importance of self-expression among young people, China is undoubtedly a strategic market for companies that want to grow.

 

The growth of the middle and upper classes, and urbanization, remain strong and are also expected to improve jewelry market conditions in the next few years.

 

However, complications advance in a constantly changing market and with a culture and use of communication channels completely different from ours.

 

Therefore, a thorough analysis of the opportunities, and an understanding of the Chinese world, especially the increasingly growing Chinese digital world, is necessary before going to invest in this market.

 

NEW CHINESE JEWELRY CONSUMERS: FROM MILLENNIALS TO CHILDREN

 

With demand in the first-tier cities reaching maturity, second and third-tier cities become a more important driver of growth and contribute more to the Chinese jewelry market.

 

Anyway, the market in the first-tier cities is obviously not shrinking, so companies should continue to improve the positioning and branding to satisfy sophisticated customers in these cities.

 

WOMEN ARE MORE LIKELY TO BUY JEWELRY FOR THEMSELVES

 

Consumption of the Chinese jewelry market is dominated by women. 63% of jewelry products are purchased by women. Looking at the opportunities for companies, brands should know that this is a highly competitive market.

 

However, a new trend is spreading: while many Chinese still wish to receive diamonds as a symbol of a future marriage, many others are more likely to buy diamonds for themselves. This is due to the growing number of working women (25% of women in China are already earning more than their spouses).

 

For Chinese women who wish to receive diamonds as a symbol of future marriage, emotional drivers that let people buy jewelry are particularly powerful. Therefore, creating an emotional marketing campaign, especially during some Chinese festivals (520 Day, the Chinese Valentine’s Day) is a good option to sell jewelry to women.

 

For women who buy diamonds for themselves, brands should adapt their product line, keeping away from the promotion based on love and showing images of women and not just couples.

 

MILLENNIALS A STRONG CONSUMER GROUP

 

The growing attention to consumption and personal decoration as a self-expression in millennials is exerting an increasing influence on the demand for jewelry.

 

Millennials increasingly appreciate the jewels to wear every day, they also value the experience of things. For example, Pandora is very popular in China because, by launching new products on various holidays, its Moment series bracelets offer different options for Chinese customers.

 

MEN ARE A FLOURISHING TARGET MARKET FOR JEWELRY BRANDS IN CHINA

 

The men’s market products in China includes rings, tie clips, cufflinks, and belt buckles. In addition, among Chinese males in the 30-44 age group, 67% wish to own diamonds.

 

The male jewelry market is still in the early stage of its development, therefore, opportunities for brands are many. Furthermore, their demand is not well satisfied as, for example, brand’s male products lack of innovation about design and most of them are gold rings or bracelets and not diamonds.

 

JEWELRY FOR CHILDREN AS A WAY OF WISHING THEM A HAPPY LIFE

 

In accordance with Chinese traditions, people give bracelets and necklaces to children as goodwill tokes and as a way of wishing them a healthy and happy life.

 

In response to this demand, many companies have introduced a variety of kids’ products. For example, Chow Tai Fook, the Hong Kong company, also cooperated with Disney, Line, and Marvel, attracting parents to buy for their children.

 

In response to changing marketing conditions, jewelry players are increasingly targeting younger consumers and trying to build a presence in second and third-tier cities mainly because the Internet penetration rate in these cities is taller than before and people are more easily influenced by KOLs when making a purchase decision.

 

THE FIRST-TIER CITIES ARE CHANGING THE SHAPE OF CONSUMERISM IN CHINA

 

In the jewelry industry in China, gold products have always been the most popular category and accounted for more than half of the industry’s revenue, followed by diamonds, jade and silver.

 

In recent years, gold jewelry has faced stiff competition from gems or other jewelry products in top tier cities. However, this competition is not present in lower-tier cities, where consumers flock to buy high-caliber gold jewelry for wealth conservation purposes.

 

If you are interested in the Chinese fashion market, welcome to CHIC Shanghai.

 

Source: MarketingToChina

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