The year 2011 was a golden year for China’s jewellery retailers.
According to a China Daily report
, jewellery retailers registered a 42 percent increase in sales last year, driven by the consumers’ taste for gold and gemstone-encrusted jewellery.
"China's jewellery sector has become a hot spot fuelled by surging investment demand for gold and precious stones," Jiang Wenwei, a senior analyst with Frost and Sullivan, was quoted as saying. Investment-driven consumption drove the demand for gold, which local buyers largely viewed as a store of value.
Figures released by the National Bureau of Statistics revealed that jewellery sales in China amounted to $2.9 billion last year, an increase of 42 percent from the previous year. The sector outperformed the sales of consumer goods which registered a 17 percent growth, the report said.
Luxury consumption among China’s expanding middle class is also on the rise, Jiang added.
"People's affection for jewellery is no longer limited to larger cities, such as Shanghai and Beijing," he said.
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