Core Insights - The World Gold Council's report indicates that while total demand for gold jewelry in China may decline in 2025 compared to 2024, consumer spending on gold jewelry is expected to remain high due to seasonal factors driving demand in the second half of the year [1][7]. Group 1: Demand and Spending Trends - In the first half of 2025, total demand for gold jewelry in China fell to 194 tons, a 28% year-on-year decrease, marking the lowest level for the first half of the year since 2009 [5]. - Despite the decline in demand volume, consumer spending on gold jewelry reached 137 billion RMB (approximately 19 billion USD), remaining stable compared to 2024 and not far from the historical peak of 163 billion RMB in 2013 [5][6]. - The proportion of spending driven by "self-wear" purchases increased to 37% in 2025, up from 27% in 2024, indicating a shift towards personal expression and self-satisfaction in jewelry purchases [1][31]. Group 2: Product Performance - Gold products continue to dominate sales in Chinese jewelry stores, with hard gold products outperforming other categories [4][12]. - The sales of ancient gold and hard gold jewelry remain the core profit sources for retailers, despite a general decline in the weight of gold jewelry sold [4][52]. - Retailers reported that 32% of respondents noted an increase in sales of hard gold products in the first half of 2025, making it the best-performing category among gold products [16]. Group 3: Consumer Behavior - The trend towards lighter-weight gold products is evident, with products weighing less than 10 grams accounting for 45% of total gold jewelry sales, up from 37% in 2023 [26][28]. - Young consumers, while still significant contributors to sales, showed a slight decrease in their spending contribution compared to older consumers, likely due to the rising gold prices affecting their purchasing power [36]. - The importance of "self-wear" purchases is reinforced, as this category remains the largest contributor to jewelry store sales, while wedding-related jewelry sales have declined from 24% in 2024 to 19% in 2025 [31][32]. Group 4: Retailer Outlook - Retailers maintain a positive outlook for gold product sales, with 47% expecting growth in the next 1-2 years, despite cautious inventory management due to rising gold prices and economic uncertainties [40][46]. - Over 60% of retailers plan to increase the proportion of lightweight gold products (under 10 grams) in their offerings, reflecting a strategic shift in response to consumer preferences [48]. - The trend of combining gold with other materials, such as enamel and various gemstones, is gaining traction, appealing to younger consumers seeking unique and fashionable designs [23][52].

Core Insights - The report indicates a slowdown in gold jewelry consumption in China by 49% since 2013, influenced by rising gold prices and declining birth and marriage rates, yet the monetary value of gold jewelry consumption is on the rise, with retail sales reaching 194.8 billion yuan in the first half of 2025, an 11% year-on-year increase [1][9][25]. - Despite challenges, 67% of respondents expressed intent to purchase gold jewelry in the next 12 months, with 75% of past buyers considering repurchasing [1][52][56]. Demand Trends - Gold jewelry demand in China has been declining in tonnage due to cyclical factors like economic slowdown and structural factors such as demographic changes, with a notable 49% decrease since 2013 [9][13][24]. - The demand for gold jewelry is characterized by cyclical patterns influenced by economic growth and interest rates, with current economic conditions indicating a prolonged transition phase [14][18]. Consumer Insights - A high ownership rate of gold jewelry is observed, with 81% of respondents owning gold jewelry, and 62% of young consumers aged 18-24 owning gold pieces [26][30]. - The primary motivation for purchasing gold jewelry is self-gifting, with 79% of consumers buying for themselves, reflecting a cultural appreciation for gold's traditional and investment value [32][35]. Purchasing Behavior - Consumers are increasingly informed and discerning, utilizing in-store interactions (61%) and social media (58%) to gather information before purchasing [50][51]. - The primary purchasing channel remains offline, with 81% of consumers preferring physical stores, although online sales are growing, particularly for lower-priced items [51][52]. Future Opportunities - Despite the current challenges, there is potential for growth in the gold jewelry market, with 67% of consumers indicating a willingness to purchase in the next year [52][56]. - The industry is encouraged to strengthen emotional connections with consumers and enhance product quality and design to meet evolving consumer preferences [67][68]. Consumer Segmentation - The report identifies five consumer segments, highlighting opportunities among "brand-oriented trendsetters," "goal-oriented consumers," and "traditionalists," each with unique purchasing motivations and potential for growth [63][64][65]. Conclusion - The gold jewelry market in China faces short-term demand challenges but retains long-term growth potential through strategic consumer engagement and product innovation [67][68].