Image credit: Chow Tai Fook
World Gold Council (WGC) recently published the Gold Demand Trends 2020. The data from the report indicates that China’s jewellery demand dipped by 35 per cent last year. The reason was attributed to challenges posed by COVID-19 and other related issues.
Now, while jewellers in China are banking on the recovery in the local economy to continue into the coming months, they are also relying on sustained growth in consumer sentiment. Also, the jewellery industry hopes for better income and effective pandemic containment to support the jewellery industry in 2021.
According to WGC report, the future, however, holds promise looking ahead to 2021. The Council’s fieldwork indicates an optimistic attitude among major jewellers in China, who experienced strong sales in recent months.
WGC also adds the industry consolidation in 2020 saw companies with more solid brand values and cash flows survive the crisis, effectively putting the industry in a healthier position. This, the report said, will benefit the Chinese jewellers due to the policy changes that will prioritise domestic consumption in 2021 as well as the coming years.
Moreover, traditional gold jewellery products performed strongly in 2020, and bridal jewellery and light hard-24-karat gold jewellery products were in continuous demand, with jewellers stocking up inventories, says the WGC report.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
