Luxury Jewellery in China

PROSPECTS

Reduction in import tariffs stimulates domestic consumption

Sales of luxury jewellery are rising in China, driven by the reduction in import tariffs implemented by the Chinese government in 2018. It was reported that in mid-2018, the local government reduced import tariffs on a series of commodities, including jewellery products.

Diamonds gain in popularity, and not merely for weddings

There is relatively strong demand for diamonds from the millennial generation, who buy these products as rewards for themselves. Compared with purchases for weddings, self-reward sales have a higher frequency and are expected to become another important driving force behind sales of diamonds.

Digital innovation is on the rise

At a time of digital development, luxury jewellery in China is spreading across distribution channels with a growing presence online. In September 2018, Tiffany & Co announced it had chosen China as the first region to further launch its new Tiffany Paper Flowers series, by joining hands with Alibaba's Luxury Pavilion, a high-end retail e-commerce platform, to boost online sales and reach more consumers in China.

COMPETITIVE LANDSCAPE

Strong competition within luxury jewellery

Benefiting from early-mover advantage and strong brand impact, international brands represented by Cartier, Tiffany, Swarovski, Bvlgari, Gucci and De Beers are well acknowledged in China, with segmented jewellery types including earrings, neckwear, rings and wristwear, and catering to diversified needs and pursuits among consumers.

Cartier makes an entrance

Competition within luxury jewellery in China continued to intensify over the review period, influenced by the dedicated efforts from leading players, which launched new products or enriching existing product lines with effective marketing. Cartier is a good example of this.

New entrants are eyeing the category

In view of considerable opportunities within the luxury jewellery industry in China, new entrants, such as Boucheron from Kering (China) Enterprise Management, have entered the category and intensified the level of competition. In January 2018, Boucheron announced its debut in mainland China by unveiling its first boutique in Shanghai.

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