China’s gold jewellery market shines as culturally resonant designs draw young buyers to safe-haven metal
- The guochao or ‘China chic’ trend, which celebrates Chinese identity, coupled with gold’s increasing value, is creating a market opportunity
- Young people are prioritising the purchasing experience, craftsmanship and the narratives behind jewellery, says Chow Tai Fook managing director
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Hong Kong-based jeweller Chow Tai Fook on gold sales to young people in China, market forecast
Hazel Wu, a 23-year-old student in Shanghai, recently bought a gold pendant to “seek an auspicious meaning” in the coming Year of the Dragon.
Many Chinese believe that they may face challenges during years that match the zodiac sign they were born under. So people born in the Year of the Dragon, like Wu, may believe they are at risk of financial setbacks or health issues. However, these can be warded off by wearing or carrying talismans.
But that is not the only reason Wu made the purchase. “I bought gold jewellery mainly for its value preservation, viewing it as a form of investment.” Wu said. “The designs are getting much fancier now, with collaborations featuring animated [characters] or ‘guochao’ elements. It’s changing the stereotyped impressions associated with gold accessories.”
The rise of the guochao or “China chic” trend, which celebrates Chinese identity, coupled with the increasing value of gold, has created significant market opportunities in the gold jewellery market in China, which was valued at 410 billion yuan (US$57 billion) in 2022, according to the Gems and Jewelry Trade Association of China. The market has grown about 12 per cent compared with the pre-pandemic level in 2019 and 66 per cent compared with 2012.
A report released by Chinese e-commerce giant JD.com last year showed that from 2019 to 2022, the variety of products with guochao elements more than tripled, and the number of consumers purchasing guochao-related goods grew more than 70 per cent, with transaction amounts increasing by 355 per cent.