As Chinese consumption of gold jewellery slumps 34%, sellers look to markets abroad: WGC

Chinese gold jewelry manufacturers are seeking new opportunities in the Middle East and India, as their domestic market experiences a 34% decline in consumption year on year, according to data from the China Gold Association. The World Gold Council (WGC) reports that buyers from these two regions dominated the recent Jewellery & Gem World Hong Kong fair, driven by the increasing demand for innovative jewelry products amidst the volatility in gold prices.

Wang Lixin, China CEO of the WGC, stated that Chinese jewellers need to add value to their products with unique designs and technologies to attract overseas buyers.

The sector's challenges are expected to persist, with Wang emphasizing that the domestic market is undergoing a period of adjustment and transition due to macroeconomic factors and high gold prices. The WGC has taken steps to bridge the gap between Chinese producers and overseas buyers, including arranging visits for Middle Eastern wholesalers to Shenzhen and facilitating trade visits by Indian retailers to global exhibitions.

Yuehao Jewellery, a Shenzhen-based producer with a history dating back to 1926, has reported an increase in clientele from the Middle East, India, Japan, and South Korea, with the company launching "black gold" series to cater to the Japanese market.

Wang reiterated that China's jewelry manufacturers must focus on enhancing their crafting techniques and design capabilities rather than solely addressing the high cost of materials. The WGC executive highlighted that the country's manufacturing and processing capabilities have advanced significantly over the past five years, demonstrating a continuous evolution in the industry.