The Chinese gold jewellery market presents a paradox: declining volume demand but rising consumer spending. Ray Jia, Research Head, ChinaWorld Gold Council says despite tonnage demand falling 49% since its 2013 peak, Chinese consumers spent RMB84 billion on gold jewellery in Q1 2025 alone, representing a 29% quarterly increase. This shift reflects gold’s dual role as both fashion accessory and investment vehicle in an uncertain economic climate.

Market Overview

Current Market Dynamics:

• Gold jewellery ownership reaches 81% among Chinese consumers, up from 62% in 2019
• Young consumers (18-24) show 62% ownership rates, significantly higher than other jewellery types
• Self-purchase dominates, with 79% buying for themselves versus 41% for others
• In-store purchases remain preferred (81%), though online channels are growing rapidly

Economic Context: The market faces both cyclical and structural headwinds. China’s economy remains stuck in a prolonged transition phase between passive destocking and active restocking, while demographic shifts including declining birth rates and marriages reduce traditional demand drivers.

Consumer Insights

Purchase Motivations:

• Cultural significance and traditional value remain primary drivers
• Investment and value preservation increasingly important amid economic uncertainty
• Quality, craftsmanship, and style personalization are top functional requirements
• Joy, confidence, and self-reward drive emotional purchase decisions

Key Barriers:

1. Affordability concerns due to surging gold prices
2. Lack of occasion-specific positioning
3. Design limitations that don’t match evolving consumer preferences

Market Opportunities

Immediate Growth Potential:

• 67% of consumers would consider purchasing gold jewellery within 12 months
• 75% of previous buyers likely to repurchase
• 27% of non-purchasers open to first-time buying

Strategic Recommendations:

1. Strengthen Occasion-Based Marketing

Gold jewellery underperforms other jewellery types during key occasions like Chinese Valentine’s Day and Mother’s Day. Enhanced emotional positioning and targeted marketing campaigns could capture these missed opportunities.

2. Emphasize Quality and Assurance

Consumers prioritize quality, trust, and guarantees when making jewellery purchases. Brands should leverage warranties, transparency, and craftsmanship messaging to differentiate from competitors.

3. Target Key Consumer Segments

• Brand-Oriented Trendsetters (20%): Focus on trendy designs from recognized brands
• Purposeful Consumers (15%): Emphasize investment value and environmental responsibility
• Traditionalists (27%): Highlight cultural heritage and superior craftsmanship

Future Outlook

While tonnage demand may continue declining due to macro pressures and demographic shifts, value-based growth opportunities remain strong. The gold price relative to Chinese household income remains at historical averages, suggesting room for continued spending growth.

Success will depend on the industry’s ability to innovate product designs, strengthen emotional connections with consumers, and effectively communicate gold’s unique value proposition as both cultural artifact and financial asset.

Key Metrics

• Market Penetration: 81% gold jewellery ownership
• Young Consumer Adoption: 62% among 18-24 age group
• Purchase Intent: 67% considering purchase within 12 months
• Quarterly Spending: RMB84 billion (Q1 2025)
• Demand Decline: 49% volume decrease since 2013 peak