Luxury Jewellery in China

PROSPECTS

Declining wedding rate has negative impact

Considered a must-have item in traditional Chinese marriage customs, wedding jewellery has come to account for a considerable proportion of the Chinese luxury jewellery market. Consequently, the declining marriage rate seen in China in recent years is having a negative impact on the luxury jewellery market.

Self-reward becoming increasingly important growth driver

The growing tendency of Millennial consumers to purchase diamond jewellery to reward themselves is helping to offset the impact of the declining marriage rate. Compared with purchases for weddings, self-reward sales have a higher frequency and are expected to become an increasingly important driving force behind sales of diamonds, in particular.

Leading brands compete for attention

Marketing is playing an increasingly important role in the development of luxury jewellery, with competition for the attention of younger consumers, in particular, intensifying. Richemont’s market-leading brand, Cartier, partnered with Beijing’s Palace Museum to present the exhibition, Beyond Boundaries: Cartier and the Palace Museum Craftsmanship and Restoration in the museum’s Meridian Gate Gallery.

COMPETITIVE LANDSCAPE

Foreign brands dominate

Benefiting from early-mover advantage and strong brand impact, foreign brands, including Cartier, Tiffany, Swarovski, Bulgari, Gucci and De Beers, are well received in China, offering segmented jewellery types including earrings, neckwear, rings and wristwear, and catering to diversified needs and pursuits among consumers. Richemont’s Cartier brand retained the lead in 2018, despite some share erosion, as most of the top 10 brands recorded double-digit current value growth.

Prada launches luxury jewellery line

The entry of non-jewellery specialists is further intensifying competition in luxury jewellery. Prada officially entered the luxury jewellery category with the presentation of its first collection of gold jewellery, including earrings, bracelets, pendants and necklaces, in 2019.

Chow Tai Fook benefits from strong demand for gold jewellery

China is the world’s foremost consumer of gold jewellery, thanks to the special place that gold has in Chinese culture. Hong Kong jewellery brand, Chow Tai Fook, performed well towards the end of the review period on the back of demand for gold jewellery.

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