Major jewellers in China are banking on continued recovery in the local economy alongside sustained growth in consumer sentiment and income, and effective pandemic containment to support the jewellery industry in 2021.
Data from Gold Demand Trends 2020, published recently by the World Gold Council (WGC), showed China’s jewellery demand dipped by 35 per cent last year, owing to challenges posed by Covid-19 and other structural changes.
The future, however, holds promise, according to the WGC report.
“Looking ahead to 2021, our fieldwork indicates an optimistic attitude among major jewellers in China, who experienced strong sales in recent months,” the council said.
According to the report, Chinese jewellers are expected to benefit from policy changes that will prioritise domestic consumption over the coming years as well as a consolidation in 2020, which saw companies with more solid brand values and cash flows surviving the crisis, effectively putting the industry in a healthier position.
Traditional gold jewellery products performed strongly in 2020, particularly among high-end consumers whose incomes were less impacted by the pandemic. Pent-up demand for bridal jewellery also boded well for intricately crafted, Chinese culture-inspired pieces.
Lighter, hard-24-karat gold jewellery products in modern designs continued to be highly sought after in China, especially by younger consumers since these are more affordable and trendier. Many jewellers likewise restructured their inventories towards such products to lower their costs, revealed the WGC report.