Chinese jewellers are increasingly becoming more innovative in terms of product offering to effectively meet ever-changing consumer preferences, according to the World Gold Council (WGC).
Gold jewellery demand in China registered a 5 percent year-on-year drop to 137.7 tonnes in the second quarter of 2017 but the pace of slowdown has moderated, WGC said in its Gold Demand Trends Q2 2017.
The overall downward trend of the last three years has slowed down in 2017, it added.
The report also cited a growing trend in China’s gold jewellery market where buyers are shifting from pure 24-karat gold to “lower-carat, higher-designed and higher-margin” products, WGC remarked.
According to the council, this is driven by a younger generation of buyers wanting to express their individuality through trendier jewellery. This development can also be traced to the need to stay competitive and keep consumers interested in new and creative designs, WGC pointed out.
For instance, Chow Tai Fook launched its 22-karat collection with cutting-edge designs in May while Lukfook collaborated with Tencent to produce a championship ring for a smartphone-based online game to entice younger consumers, WGC disclosed.
“As younger consumers continue to pull away from the tradition of 24-karat gold, higher-margin, lower-gold-content products are being developed to fill the void. But so far this year, the pace of decline has moderated and, as the industry effectively targets key consumer segments, we feel the market may start to bottom out following the steady decline from its 2013 peak,” said WGC.