Core Insights - The gold and diamond retail sector is experiencing short-term revenue fluctuations due to store closures, employee relocation costs, and restructuring relationships with franchisees following new tax policies [2][7] - Despite significant discounts during the "Double 11" shopping festival, foot traffic in physical stores remains low, indicating a shift in consumer behavior towards online shopping [3][8] Store Performance - Major brands like Chow Tai Fook and Lao Feng Xiang are seeing limited customer traffic even in prime locations, with some stores experiencing no customers for extended periods [2][3] - The price of gold jewelry has increased, with Chow Tai Fook's gold price rising from 1198 CNY per gram on November 2 to 1259 CNY per gram on November 6, reflecting a 5.1% increase [3] Market Trends - The traditional reliance on foot traffic in core business districts is failing as consumer behavior shifts online, leading to a structural dilemma for physical stores [7] - Major brands are reducing their physical store presence while increasing investment in e-commerce channels, with Chow Tai Fook and other brands reporting significant declines in revenue from franchise operations [8][9] E-commerce Growth - E-commerce sales for leading brands are growing rapidly, with Zhou Dasheng reporting a 17.68% increase in online revenue year-on-year, while Chow Tai Fook's online retail value grew by 28.1% [8][10] - The shift to e-commerce reflects a "trust migration" where consumers increasingly trust official brand online stores over physical locations, particularly for standardized products [10] Strategic Adjustments - Leading brands are focusing on "high-quality growth" strategies, emphasizing profitability per store rather than sheer number of locations, leading to a strategic closure of underperforming stores [9] - The integration of online and offline channels is becoming essential, as brands aim to leverage e-commerce for cost reduction while maintaining physical stores for customer experience [10]

Core Viewpoint - The article discusses the challenges faced by gold brands in the context of shrinking store networks, short-term revenue fluctuations, and the restructuring of franchisee relationships due to new tax policies on gold and diamonds. Despite significant discounts during the "Double 11" shopping festival, foot traffic in physical stores remains low, indicating a shift in consumer behavior towards online shopping [3][4][6]. Group 1: Market Conditions - Major gold brands like Chow Tai Fook and Lao Feng Xiang are experiencing limited customer traffic even in prime locations, with some stores seeing no customers for extended periods [3][4]. - The price of gold jewelry has increased, with Chow Tai Fook's gold price rising from 1198 yuan per gram on November 2 to 1259 yuan per gram on November 6, reflecting a 61 yuan increase [4]. - The decline in customer traffic is attributed to a significant drop in footfall in first-tier city shopping districts, leading to a structural dilemma for gold jewelry stores that traditionally relied on location for traffic [6]. Group 2: Brand Strategies - Leading gold brands are shifting from expansion to quality improvement, facing short-term income fluctuations and the need to restructure franchisee relationships while focusing on product quality, service, and digitalization [7]. - Many top gold brands are reducing their physical store presence and increasing their focus on e-commerce channels. For instance, Chow Tai Fook reported a reduction of 603 retail points by September 30, 2025, with a significant number of closures in underperforming stores [8][9]. - The e-commerce segment is showing strong growth, with Chow Tai Fook's online retail value increasing by 28.1% year-on-year, indicating a shift in consumer trust from physical stores to online platforms [9][11]. Group 3: Consumer Behavior - The article highlights a "trust migration" in high-end gold jewelry consumption, where consumers are increasingly relying on brand official flagship stores for trust, especially for standardized products and IP collaborations [9]. - Despite the growth in e-commerce, physical stores still play a crucial role in aspects like trying on products, value retention, and after-sales service, suggesting that brands will not completely close physical locations but will integrate online and offline experiences [11].