Industry Overview - The upstream of the jewelry industry includes various raw materials such as silver, colored gems, pearls, alloys, rhinestones, and crystals, along with auxiliary materials like adhesives [1] - The downstream consists of end consumers, with rising income levels in China enhancing female consumers' purchasing power, making jewelry an essential part of their consumption alongside clothing, shoes, bags, and cosmetics [1] Industry Challenges - The industry faces intense homogenization competition, with a lack of innovative design leading to a market filled with similar products, causing consumer fatigue and hindering true innovation [4] - Product quality varies significantly, leading to a widespread trust crisis, as price wars in the low-end market result in the use of inferior materials, causing frequent issues like oxidation and allergic reactions [4] - The supply chain is complex and fragile, with traditional models facing disruption from e-commerce and live-streaming sales, leading to significant pressure on physical stores and distributors [5] - The industry is heavily reliant on specific raw materials, making it vulnerable to price fluctuations and supply shortages, which can directly impact production and costs [5] - Consumer demand is rapidly changing, making it difficult for brands to maintain loyalty, as the fast fashion model exacerbates homogenization and quality issues [6] - There is a gap between design talent cultivation and commercial application, with a lack of support for original designers leading to a scarcity of innovative design in the market [6] Market Size and Trends - According to statistics, the market size of China's jewelry industry was 835.73 billion yuan in 2020, projected to decline to 798.23 billion yuan by 2024, reflecting a year-on-year decrease of 2.93% [7] - The industry is expected to see a growth rate between -5% and 5% from 2025 to 2031, with a projected market size of 848.48 billion yuan by 2031, indicating a year-on-year growth of 3.81% [12] - The industry is supported by favorable policies and increasing purchasing power, with a growing consumer base in lower-tier cities and the millennial generation driving new market increments [9] Development Drivers - Factors driving the development of the jewelry industry include enhanced industry support, increased consumer spending, and technological advancements in craftsmanship and digitalization [9][11]