CHOW TAI FOOK(HK:01929) 2 1 Shi Ji Jing Ji Bao Dao·2025-10-21 23:16Core Viewpoint - The demand for gold jewelry remains strong despite rising gold prices, driven by both investment and aesthetic value, with brands like Lao Pu Gold and Chow Tai Fook responding with price adjustments and innovative designs [2][3][11]. Price Adjustments - Lao Pu Gold announced a price adjustment set for October 26, marking its third price change in 2023, following adjustments in February and August [1]. - Chow Tai Fook plans to increase retail prices of gold products by approximately 12% to 18% by the end of October [1]. Consumer Behavior - Consumers are actively purchasing gold jewelry in anticipation of price increases, with reports of long queues and certain popular items being sold out [1][7]. - The perception of gold jewelry as both a decorative item and an investment is influencing consumer purchasing decisions, with many viewing it as a better value compared to luxury goods [7][11]. Market Performance - As of October 20, gold prices have risen significantly, with COMEX gold futures at $4,374.3 per ounce and domestic gold jewelry prices also increasing [6]. - Chow Tai Fook reported a 4.1% year-on-year increase in retail value for the three months ending September 30, with a notable 3% growth in mainland China [8][9]. Industry Trends - The overall demand for gold jewelry in China has seen a decline in volume, with a 28% drop in total demand to 194 tons in the first half of 2025, the lowest since 2009 [11]. - Despite the decline in volume, total consumer spending on gold jewelry remained stable at 1,370 billion yuan, indicating a shift towards higher-value purchases [11]. Brand Strategies - Brands are focusing on innovation and design to attract consumers, with Lao Pu Gold and Chow Tai Fook adapting their strategies to meet diverse consumer needs [12][13]. - The combination of aesthetic appeal and investment potential is expected to drive a new growth trajectory for gold jewelry brands [13].