Jewellery brands are expected to capture a bigger share of China’s jewellery sector, particularly in second-, third- and fourth-tier cities, over the coming years, according to a market research published recently.
Jewellery brands are developing at a brisk pace and stepping up their expansion through franchisees, the Hong Kong Trade Development Council said in a study on China’s jewellery market. Some of these brands have more financial muscle and are able to open sales channels faster, the study noted.
China’s thriving consumer market has attracted international jewellery giants such as The De Beers Group of Companies, Cartier, Perles De Tahiti, as well as Hong Kong jewellery brands Chow Tai Fook and TSL, to enter the mainland market.
“With the landing of foreign brands in the China market, competition between local brands and foreign brands, as well as rivalry among foreign brands themselves is likely to escalate,” according to the market research.
It also cited growth prospects in China’s gold jewellery market despite a lacklustre performance in recent months.
“In the long run, driven by continued increase in upscale consumption, a marriage and child-bearing peak, and the trend of buying gold as an inflation hedge, there is still a definite growth potential in China’s consumer market for gold jewellery,” it continued.
Diamond jewellery, meanwhile, is likewise poised for growth. Citing industry sources, the study said second- and third-tier cities will become the main impetus for growth. The share of Chinese buyers’ diamond consumption in total global sales is expected to increase to 20 percent to 25 percent in the next 10 years, it added.