On November 10, data released by the China Gold Association revealed that gold consumption in China during the first three quarters of 2025 totaled 682.730 tons, marking a 7.95% year-on-year decline. Notably, gold jewelry consumption dropped sharply by 32.50% to 270.036 tons, while gold bars and coins saw a 24.55% increase to 352.116 tons.
The sustained rise in gold prices has significantly dampened demand for gold jewelry. Concurrently, new gold tax regulations have added operational pressure on branded jewelers, prompting many to pivot toward higher-value-added products.
The World Gold Council noted that these tax policies will profoundly impact China’s gold jewelry sector, compounding existing challenges—such as attracting consumers, particularly younger demographics, amid elevated gold prices.
**Lightweight, High-Value Jewelry Gains Traction** Despite the overall slump, lightweight and high-value-added jewelry maintained strong appeal. The China Gold Association highlighted that such products outperformed the broader market.
The World Gold Council’s *2025 China Gold Jewelry Retail Market Insight* report further indicated that lightweight gold products (under 10 grams) now account for 45% of retailers’ sales, up from 37% in 2023. This shift aligns with rising gold prices and industry efforts in design innovation. Meanwhile, sales of heavier pieces (over 20 grams) declined, while mid-weight (10–20 grams) demand remained stable.
CITIC Securities emphasized that boosting per-gram added value is critical for industry resilience. Retailers are focusing on three strategies: raising brand licensing fees, increasing wholesale margins, and optimizing product mixes toward higher-margin items. Notably, premium and lightweight jewelry—often sold at fixed prices—command higher margins due to their design, cultural, and emotional appeal.
**Tax Reforms Accelerate Industry Reshuffle** Beyond price pressures, new gold tax policies effective November 1, 2025, are hastening transformation. Dai Jianfeng, a China Gold Association expert, predicts industry polarization: well-capitalized brands with strong design capabilities and risk management will thrive, while smaller, less differentiated players may exit the market.
**Brands Embrace High-Value Strategies** Leading jewelers are doubling down on premium segments. Chow Tai Fook reported steady progress in brand transformation, with strong reception for its *Chuan Xi* and *Imperial Palace* collections, alongside new launches like the *Heaven and Earth* series inspired by ancient cosmology.
Guangdong Chj Industry Co., Ltd. (002345.SZ) highlighted its dual-driver strategy in its interim report: fashion jewelry (48.53% of revenue, 27.43% gross margin) outperformed traditional gold (44.63%, 12.78% margin). Initiatives like cultural heritage collaborations and innovative craftsmanship (e.g., filigree techniques) drove growth.
**Youth Demand as a Growth Engine** The report underscores younger consumers’ pivotal role, fueled by rising cultural pride and investment awareness. Innovations blending gold with other materials to create lighter, trendier designs are expected to sustain their interest.
Dai Jianfeng concluded, “The industry is transitioning from weight-based trading to a new era centered on design, culture, and emotional value.” Brands like Lao Feng Xiang, which combines craftsmanship and luxury positioning, exemplify this shift toward high-margin, high-sentiment products.
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