Strong domestic demand and rising disposable income are the major factors sustaining the robust growth of China’s jewellery retail sector, according to a China Daily report
The annual growth rate of the jewellery industry in China could reach more than 35 percent in 2012, Frost & Sullivan analyst Raphael Jiang said in a report. He predicted that the mainland would be able to sustain this growth momentum in the next five years.
Rising income would be the major factor fuelling the demand for jewellery, boosted by the gift-giving custom in Chinese culture, said Jiang.
"Once the jewellery market starts growing, it is hard to stop its momentum. Every year, people get married and give birth," Winston Chow, director and deputy general manager of Chow Sang Sang Holdings International Ltd, was quoted as saying.
Gold, platinum and jadeite jewellery have become popular gifts at engagement parties, weddings, baby showers and birthdays, Chow said.
Jewellery has also reinforced its role as a store of value.
"The insane growth in the price of gold caused by the unstable global economy especially contributed to the preference for gold jewellery," Jiang said.
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