Beijing: China’s gold jewellery industry is “keen and determined” to adapt to challenges arising from macroeconomic uncertainties and changes in consumer preferences, according to the World Gold Council (WGC).
According to WGC’s Gold Demand Trends Q1 2017, gold jewellery demand in China dropped 2 percent to 176.5 tonnes in the first quarter of 2017 from 179.2 tonnes in the same period a year ago.
Despite higher global gold prices, demand for gold jewellery remained strong during the first quarter of the year, WGC said. China recorded a surge in gold jewellery purchases during Chinese New Year 2017, which happened in January.
This seasonal demand was boosted by 2017 having a double spring and a leap month, making it an auspicious year for weddings, noted the council.
China’s gold jewellery industry is also "resourceful in combating subdued consumer demand,” remarked WGC.
Results of a recent WGC study showed that younger Chinese consumers prefer to spend money on experiences rather than material goods. It cited a separate research by Agility Research & Strategy, which shows that the top three priorities for affluent Asian millennials are “health, travel and spending time with the family.”
“But they are also keenly aware of new trends and enjoy expressing themselves in ways that differ from tradition. Gold jewellery manufacturers and retailers are willing and able to tap into these trends, responding with innovation,” WGC said.
The 18-karat gold sector, meanwhile, continues to grow. Manufacturers have responded by offering a wider array of designs that are more intricate and modern than “traditional” 24-karat gold jewellery.
A new 22-karat gold segment has also been introduced to cater to demand for new, innovative and trend-setting pieces. Some retailers have increasingly been specialising in bridal jewellery, WGC revealed.
