Emerging Patterns and Market Dynamics in the Luxury Jewelry & Watch Category in China
This report focuses on the thriving segment of luxury jewelry and watches, delving into industry, consumers, and brands.
Luxury Market & Hard Luxury Industry Performance
Chinese Luxury Market Enters a New Phase of Growth
Chinese luxury market is expected to achieve 15-20% YoY growth in 2023, reaching a whopping market size of 550 Bn RMB. In the long run, the Chinese market position will further solidify, anticipated to reach a 25% market share in 2023 and projected to surge to 40% by 2030, potentially surpassing Europe and the Americas, emerging as the World’s largest single market.
1. The data in the left image is derived from Tencent Marketing Insight (TMI) & BCG‘s Digital Trends of China’s Luxury Market report. The image was organized and drawn by CuriosityChina. 2. The data in the right image is derived from Deloitte’s Whitepaper on Douyin Luxury Industry 2023 report. The image was organized and drawn by CuriosityChina.
Multiple Factors Drove the Growth in Chinese Luxury Market
With the market flourishing amid economic recovery, per capita disposable income soared 6.5% YoY in H1 2023, propelling consumer confidence to reach an impressive 94.9 by March. The influx of Post-95s and tier 2 & below propels market expansion to new heights. Moreover, the desire for self-reward and social value became the forefront of shopper considerations and drove the luxury market’s growth.
1. National Bureau of Statistics of China (NBS). 2. KPMG - Quarterly Report of Consumer Goods Retail Industry q1 2023. 3 4 5. TMI & BCG - Digital Trends of China’s Luxury Market
Thriving Growth in the Chinese Market: Jewelry and Watches Shine Bright.
Jewelry, watches, and bags categories have the strongest growth, due to their investment value, exclusivity in brand and design, and versatile wearing occasions. With a surge in penetration rates among the middle-class consumer segment, jewelry and watches experienced the highest growth, accompanied by positive consumer confidence that reinforces a promising market outlook.
1. Deloitte - Whitepaper on Douyin Luxury Industry 2023. 2. TMI & BCG - Digital Trends of China’s Luxury Market. 3. Ruder Finn & CSG INTAGE Research – China Luxury Forecast 2023
Three Hot Trends Emerging in Chinese Jewelry Market
The luxury jewelry market is projected to reach 110 billion RMB in 20231. Gold jewelry sales have captured the largest share of the jewelry market and enjoyed further expansion, particularly since consumers see them as an investment property. Lab-grown diamonds are also steadily gaining demand and are expected to reach 28 billion RMB by 2025 with the growing consumer pursuit of cost-effectiveness after the pandemic. Since 2023, the colored gemstone market has been thriving with robust sales and rising prices.
1. Deloitte - Whitepaper on Douyin Luxury Industry 2023. 2. Moojing Market Intelligence - Observation Report on E-commerce Platforms in the Jewelry Industry. 3. China Gold Association (CGA). 4. i-research - Diamonds or Gold: Which is the Symbol of Love for Young People? 5 7. Kantar - Whitepaper on Lab-grown Diamond Jewelry Industry. 6 8 9. Gems ＆ Jewelry Trade Association of China (GAC)
Three Hot Trends Emerging in Chinese Watch Market
Swiss watch exports to China surged by 16.14% YoY in January-July 2023.1 Notably, an increasing number of brands are recognizing the rising allure of watches as “a girl's new best friend” while placing greater emphasis on design and fashion elements. Furthermore, a great number of watch brands continue to improve their digital consumer journey, adapting to the evolving landscape of the industry.
The Female Watch Market Shows Vast Potential
Female buyers will be the main consumer group for watch brands in the future. 53% of female consumers in China prefer female-specific designs which is slightly higher than the 44% level worldwide. Nearly half of brands are expanding their range of designs tailored to females and one-third are looking to offer female-friendly sizes.2 Brands see a bright future with female buyers. Piaget, Jaeger-LeCoultre, and other watch brands are actively bringing in female executives to better appeal to female consumers.
Rising Fashion Appeal of Watch
Overall design (52%) is the key factor influencing consumer decisions in watch purchases, as reported by Ruder Finn.3 Additionally, 60% of consumers consider watches as fashion accessories, enabling them to showcase their individuality.4 This trend highlights the growing emphasis on the fashion attributes of luxury timepieces among high-end watch consumers in China, who seek personalized aesthetics, emotional expression, and social identity through their watches.
The Watch Brands Embracing Digital Transformation
Luxury brands have found their e-commerce haven through platforms like Tmall Luxury Pavilion and WeChat. Deloitte's survey revealed that an impressive 26% of Chinese respondents preferred purchasing watches directly from the brand's website, surpassing other countries in proportion. The industry is witnessing a significant shift as 57% of brands plan to introduce non-fungible tokens (NFT) primarily as digital twins for certification purposes and as an accessory in the metaverse. 5
1. Swiss Federation of Watch Manufacturers‘ Associations. 2&5. Deloitte – The Deloitte Swiss Watch Industry Study 2022. 3. Ruder Finn China Luxury Forecast 2023 report. 4. VOGUE Business-"The Wristed Ones: Whitepaper on High-End Timepieces"
Consumer Behavior
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