MARKET WATCH 市场观察 48 | JNA September/October 2024 Hong Kong is yet to return to its pre-pandemic prosperity but the city’s jewellery retail market continues to exhibit resiliency, with retailers seeking ways to drive business amid economic volatility. Jewellery sales had a promising start to the year, gaining 8.8 per cent year on year to reach HK$10.2 billion (around US$1.3 billion) from January to February. But the optimism was short-lived. Latest government data showed sales had dipped 12.8 per cent to HK$26.5 billion (around US$3.4 billion) in the first half of the year. According to major jewellers, retail sales slowed down beginning April, which they attributed to consumers becoming more cautious due to a spike in gold prices. Data from the World Gold Council showed gold prices reached US$2,498.60 per ounce as of September 2, 2024. Interestingly, the impact of record-high gold prices on sales performance could be temporary. Demand for gold jewellery is expected to remain robust and drive business growth, thanks to the precious metal’s inherent value and investment potential, and the introduction of innovative designs. Winston Chow, director and deputy general manager of Chow Sang Sang Holdings International Ltd, commented, “Amid economic challenges and uncertainties in the property and stock markets, consumers are turning to gold for wealth preservation. Strong gold jewellery sales are instrumental in supporting the overall business.” Kent Wong, managing director of Chow Tai Fook Jewellery Group, agreed. Citing data from the group’s 2023 Jewellery Consumer Trends Report, he noted that the appeal of gold also extends beyond cultural and investment considerations as it resonates with 64 per cent of Gen Zs who purchase pure gold jewellery to reward themselves or for daily wear. This suggests that the market for gold is poised for continued growth. Modern gold Hong Kong-headquartered jewellers are rolling out new collections to cater to consumers’ growing appetite for gold jewellery in China and Hong Kong, which are their primary markets. They highlighted advancements in gold | Sharon Kwok 郭芷雯 | Hong Kong-based retail jewellers are embracing change through innovative products, digitalisation and strategic branding. 中国香港的珠宝零售商着力改变和 创新，通过崭新的产品、数字化和策略性品牌塑造，以应对瞬息万变的市场趋势。 中国香港珠宝零售商与时并进 HONG KONG jewellery retailers adapting to the times Pendant from Chow Tai Fook’s Rouge Collection; jewellery set from Lukfook’s Heirloom Fortune Collection; bracelet from Chow Tai Fook's HUA Collection 周大福传福系列的吊坠; 六福福滿傳家——宋韵传家系列首饰套装; 周大福传承系列的手链
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