The double holidays are approaching and gold jewelry is entering its peak sales season. What are the hot-selling categories?
In the first half of 2024, the continued rise in gold prices has brought certain operating pressures to the gold jewelry industry. However, with the Mid-Autumn Festival and National Day approaching, gold jewelry has ushered in the traditional peak consumption season, and many companies are working hard on marketing, especially focusing on attracting young consumers.
01
Market expectations are relatively optimistic
Data from the China Gold Association showed that in the first half of 2024, China's gold jewelry sales were 270.021 tons, a year-on-year decrease of 26.68%.
The reporter recently visited several shopping malls in Hangzhou and Shanghai and found that compared with the suppressed gold jewelry consumption in the first half of the year, as the Mid-Autumn Festival and National Day approached, the gold jewelry counters were quite popular. There was even a long queue in front of a gold brand that launched a Mid-Autumn Festival discount event.
Regarding the sales forecast for the next few months, the staff of many gold brand stores expressed confidence. A Chow Tai Fook salesperson told reporters that they had received several customers who wanted to buy gold for weddings that day. The National Day holiday has always been a peak season for weddings, and sales are expected to be relatively optimistic in the near future.
"In addition to the demand for gifts for visiting relatives and friends, this year is the Year of the Dragon and many 'dragon babies' have been born. Some customers buy them for their children." A person in charge of the Mingpai jewelry counter told reporters that since last month, the company has begun to replenish stores in response to the demand for holiday gifts to ensure sufficient supply of a variety of main products during the holidays.
Yuan Shuai, deputy secretary-general of the Zhongguancun Internet of Things Industry Alliance, told reporters that the demand for gold jewelry fluctuates seasonally. Although the recent gold price is at a high level, the traditional culture and customs of the festival still drive the consumption of gold jewelry, which also injects vitality into the subsequent gold market consumption.
According to the China Gold Jewelry Market Report 2024, my country's gold jewelry is still the most attractive product among gold jewelry products. The gold jewelry industry's own innovative and creative capabilities provide an internal driving force for industry growth.
Hong Shibin, an industry observer at Kandong Economic Platform, told reporters that the rapid rise in gold prices at the beginning of the year has turned to a stable state, which is conducive to restoring consumer confidence and gradually releasing consumers' demand for gold jewelry to preserve value. At the same time, as companies actively seek ways to break through and pay more attention to brand, design, and service quality, gold jewelry market consumption is expected to pick up.
02
The main force of consumption is getting younger
In fact, in recent years, many gold jewelry products have begun to be sought after as fashion items, and some are even regarded as handicrafts and collectibles. Behind this is that major brands are targeting the pain points of young consumer groups and actively innovating in brand positioning, product design, gold craftsmanship, and marketing methods.
During the visit, the reporter noticed that with the recent popularity of "Black Myth: Wukong" on the entire Internet, many brands have taken advantage of the opportunity to launch gold jewelry with related elements, such as Chow Sang Sang's "Golden Hoop" ring, Mingpai Jewelry's "Wukong Knot" bracelet, etc., Li Chuang Chaoyin's "Wukong" cultural and creative series, and similar products have also attracted many young customers to stop.
Many listed gold and jewelry companies have mentioned that the main consumers of gold and jewelry in China are getting younger, and fashionable products are more attractive than traditional gold products.
Qu Fang, an investment consultant at Wanlian Securities, told reporters that young people are more inclined to buy gold as jewelry and investment. With the diversification, personalization and high-end development of gold jewelry in recent years, its appeal to young people has gradually increased, and gold jewelry brand companies have also placed more emphasis on product upgrades and channel optimization.
It is reported that as the main force of consumption tends to be younger, the gold products launched by listed gold and jewelry companies are also becoming more sophisticated in terms of craftsmanship and styles. For example, fashionable gold products are made using ancient gold, 3D hard gold, wire drawing, sandblasting and other craftsmanship, as well as the introduction of national style styles and the combination of national trend elements in design.
Mingpai Jewelry said that the company will combine the direction of product research and development with current popular elements and consumer preferences, and is committed to original design, improving independent research and development capabilities and product craftsmanship levels, forming a product system with Mingpai brand characteristics and advantages, and continuously creating popular products with Mingpai's imprint and brand genes.
Hong Shibin said that gold and jewelry companies should further strengthen the construction of online sales channels, increase the proportion of online sales, and conduct marketing through various live broadcast platforms and social platforms to meet the shopping habits and needs of young consumers. At the same time, they should focus on improving service quality, improving consumers' shopping experience, and enhancing customer stickiness and loyalty.
03
In-depth data analysis: Insight into young people’s preference for “buying gold”
Only by knowing this and that can we enter the market with strength. The preferences of young consumers are also worthy of brand research. Through the analysis of search data from multiple platforms such as Xiaohongshu, Taobao, and Douyin, jewelry brands need to have a deep understanding of what young people care more about when they "buy gold".
1. Consider the cost performance
Young customers are more concerned about cost-effectiveness. In 2024, the trend of cost-effectiveness has also spread to the field of gold jewelry. In order to "save money", young people give up gold jewelry brands and start to pan for gold in the wholesale market "Shenzhen Shuibei", or even buy gold bars directly from banks and "play gold" in gold shops. Young consumers also prefer to buy small-gram gold such as "gold beans" and "gold coins" with lower unit prices.
The spread of gold-making videos and the popularity of the ancient gold-making circle (boosted by social media) have further promoted the offline "gold-making" craze.
2. Buddhist young people value the meaning
When facing the anxiety of reality, young people like to "pray for good luck" by buying "lucky things" and use some mysterious metaphysical power to achieve the purpose of "asking for good luck".
When it comes to "seeking good luck", the auspicious and festive meaning of gold has deeply touched the hearts of this generation of young people. Buying gold is not only a consumption behavior, but also a hope to express their beautiful expectations and yearnings for a new life.
3. Style selection: two extremes
Compared with the older generation who focus on the weight of gold when buying gold, young people also have certain requirements for the style of gold.
Young people are most interested in gold jewelry with youthful and fashionable designs and "new national fashion" jewelry with cultural connotations. IP co-branded items and heritage series of ancient craftsmanship have also become popular styles that young people are interested in and purchasing.
The innovation and spread of these gold jewelry products reflect the gold jewelry industry's rapid response to market trends and its ability to innovate. It not only enriches the product line of the market, but also provides consumers with more diverse choices, becoming a new driving force for the development of the industry.