JNA Sep/ Oct 2021

SPECIAL FEATURES 16 | JNA Sep/Oct 2021 According to Pan, diamond jewellery accounted for 10 per cent of Lao Feng Xiang’s RMB51.7 billion (US$7.5 billion) retail sales in 2020 but comprised 90 per cent of gem-studded jewellery sales. Lao Feng Xiang is targeting RMB60 billion (US$8.7 billion) in total jewellery retail sales this year and expects diamond jewellery sales to return to record-high levels attained in 2019. Growth drivers The wedding market, once seriously affected by the pandemic, has also achieved a quick recovery since the beginning of 2021. Over 2.1 million couples registered for marriage certificates in the first quarter, 37 per cent more than the same period in 2020. “Weddings remain the backbone of diamond consumption in China,” remarked Stone Xu, chairman of leading diamond jewellery retailer Zbird. The wedding market prefers 1-carat diamonds as well as stones in the 0.30-carat to 0.50-carat range, which accounts for around 75 per cent of Zbird’s total sales. Some 65 per cent of Zbird’s sales in this customer segment are for diamonds in F-H colour, while 80 per cent of its wedding-related sales are for VS1 to SI1 stones, Xu shared. Pan likewise underscores the importance of the wedding market to the diamond jewellery retail sector. Wedding bands with small diamonds are always popular buys at Lao Feng Xiang. When it comes to bigger diamonds, 0.50- to 1-carat stones move well, Pan continued. A 1-carat diamond commands around RMB40,000 (US$5,800) to RMB50,000 (US$7,250) at promotional events such as wedding shows. This fits nicely in the budget of newlyweds in Shanghai. Meanwhile, diamonds of 2 carats and up are purchased mostly by middle-aged consumers. Zbird’s Xu also pointed to increasingly diversified consumer preferences for diamonds. In addition to traditional round diamonds, more Chinese consumers are seeking fancy-shaped diamonds such as cushion and princess cuts. Moreover, consumers who already own a diamond now tend to buy diamond jewellery as a gift for loved ones to commemorate important milestones such as wedding anniversaries. Some of them would consider gifting fancy colour diamonds. Mid- priced yellow diamonds are extremely popular for these occasions, according to Xu. Retail sales of diamond jewellery will get a further boost from upcoming shopping seasons and festivals. Demand is poised to soar during Golden September and Silver October, the traditional wedding peak seasons. Double 11 or Single’s Day on November 11, Christmas and New Year likewise draw diamond sales. Weddings remain the backbone of diamond consumption in China. – Stone Xu, chairman, Zbird KGK Group Vice Chairman Sanjay Kothari KGK 集團副主席 Sanjay Kothari