CHINA DOWN, BUT OUTLOOK FOR LUXURY IS POSITIVE
Diamond World|January - February 2023
Ongoing Covid-19 restrictions and economic uncertainty led to the declining of personal luxury market in China for the first time in five years
CHINA DOWN, BUT OUTLOOK FOR LUXURY IS POSITIVE

The China luxury market had been on a bull run over the past five years, with the market doubling between 2019 and 2021. That growth streak ended in 2022, brought to a halt by zeroCovid policies. Strict lockdowns remained in place through December, slowing economic and social activities and causing a significant number of stores to sit idle.

As a result, the personal luxury market contracted 10% YOY (see Figure 1). In 2022, nearly every luxury category and most brands experienced their first major decline in five years.

Since borders were still closed at the start of 2022, Chinese customers made most of their luxury purchases within the mainland. Despite a strong start to the year, Covid-related lockdowns started in the second quarter and created barriers to purchasing. Major cities were shut down, sometimes suddenly, which prevented in-person shopping.

A decline in the real estate market, higher unemployment, and anxiety about Covid also weakened consumer sentiment. Many consumers opted to stay home, even after movement restrictions relaxed. Luxury brand leaders told us shopping mall traffic was down 30%-35%.

Luxury sales did not decline as steeply as foot traffic because conversion rates increased significantly. Consumers completed very targeted and short shopping trips, instead of casually browsing stores, as they had in the past.

All luxury categories were affected by the decline, although not to the same degree (see Figure 2). Categories with strong online penetration were less affected by lockdowns and fared better.

Online penetration was lower in other segments (10%-15%), so they were more exposed during lockdowns. The watch market suffered the most, declining 20%-25% from 2021. Fashion and lifestyle categories experienced a 15%-20% decline. Jewellery and leather goods performed slightly better, with a 10%-15% decline.

この記事は Diamond World の January - February 2023 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Diamond World の January - February 2023 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

DIAMOND WORLDのその他の記事すべて表示
GJEPC's IIJS Tritiya: A Grand Showcase of Indian Jewellery Excellence
Diamond World

GJEPC's IIJS Tritiya: A Grand Showcase of Indian Jewellery Excellence

The latest edition of IIJS Tritiya surpassed its predecessor in scale and sophistication, boasting a staggering 900 exhibitors and 1,900 stalls spread across 40,000 square meters. Serving as an expansive marketplace, it facilitated crucial connections and collaborations for industry players, drawing over 15,000 pre-registered visitors from 500 cities in India and 60 countries, which emphasizes its global importance.

time-read
4 分  |
March - April 2024
Venus Jewel ETHICAL SOURCING, RESPONSIBLE MANUFACTURING AT THE CORE OF VENUS JEWEL
Diamond World

Venus Jewel ETHICAL SOURCING, RESPONSIBLE MANUFACTURING AT THE CORE OF VENUS JEWEL

Venus Jewel began its journey with a vision to revolutionize the industry, and took the bold step of becoming the first to specialize in premium size natural diamond manufacturing in India. This pioneering approach has allowed the company to differentiate itself from competitors, and cater to a unique market segment

time-read
4 分  |
March - April 2024
GemGenève BUDDING DESIGNERS TO WATCH OUT FOR AT GEMGENEVE
Diamond World

GemGenève BUDDING DESIGNERS TO WATCH OUT FOR AT GEMGENEVE

Visitors to GemGenève's forthcoming edition, between May 9 and May 12, 2024, at Palexpo Hall 1, should not miss the amazing space known as the Designer Village. Bringing together rising stars of the gem and jewellery industry, the Village offers an uplifting overview of some of the most promising talents

time-read
3 分  |
March - April 2024
Russian Diamond Imports ROUGH DIAMOND IMPORT DOWN BY 8% OWING TO G7-EU BAN: GJEPC
Diamond World

Russian Diamond Imports ROUGH DIAMOND IMPORT DOWN BY 8% OWING TO G7-EU BAN: GJEPC

The phased ban on the import of Russian diamonds imposed by the G7 nations and the EU has thrown the global industry out of gear - India is particularly concerned as the livelihood of millions of people might be impacted. Vipul Shah, Chairman, GJEPC, talks to Suneeta Kaul about the steps that are being taken to address the challenges and mitigate the situation

time-read
5 分  |
March - April 2024
THE NEW JEWEL IN TOWN: LAB-GROWN DIAMOND JEWELLERY TAKES CENTRE STAGE
Diamond World

THE NEW JEWEL IN TOWN: LAB-GROWN DIAMOND JEWELLERY TAKES CENTRE STAGE

Lab-grown diamond jewellery is not a fad. While many Indian retailers choose to be circumspect about jewellery laden with labgrown diamonds, which are chemically, optically and physically identical to natural diamonds, there is most definitely a revolution happening in this space, driven by demand backed by sheer affordability

time-read
10+ 分  |
March - April 2024
Guinness World Records Recognizes Largest Tanzanite Sculpture
Diamond World

Guinness World Records Recognizes Largest Tanzanite Sculpture

On March 9, 2024, a momentous occasion took place at the Rice Northwest Museum of Rocks & Minerals in Hillsboro, Oregon, marking a historic milestone in the world of gemstones.

time-read
1 min  |
March - April 2024
Signet Jewelers Reports 6.3% Decline in Q4
Diamond World

Signet Jewelers Reports 6.3% Decline in Q4

Signet Jewelers reported a 6.3% decline in total sales to $2.5 billion during the quarter that ended February 3, 2024. Same-store sales were down 9.6%, compared to the previous year.

time-read
1 min  |
March - April 2024
GIA Opens New Lab in Dubai
Diamond World

GIA Opens New Lab in Dubai

Gemological Institute of America (GIA) opened a new, state-of-the-art diamond grading laboratory, GIA Laboratory DMCC (Dubai Multi Commodities Centre) in Dubai on February 19, 2024.

time-read
1 min  |
March - April 2024
WFDB Concludes Annual Presidents' Meeting in Shanghai
Diamond World

WFDB Concludes Annual Presidents' Meeting in Shanghai

The World Federation of Diamond Bourses (WFDB) concluded its annual Presidents’ Meeting for 2024, held in Shanghai, China.

time-read
1 min  |
March - April 2024
GJEPC Presents 50th India Gem & Jewellery Awards to Export Leaders
Diamond World

GJEPC Presents 50th India Gem & Jewellery Awards to Export Leaders

The Gem & Jewellery Export Promotion Council (GJEPC) presented the coveted 50th India Gem & Jewellery Awards (IGJA, to exporters.

time-read
1 min  |
March - April 2024