Core Insights - The Chinese luxury market is witnessing a shift from soft luxury (bags, clothing, shoes, and beauty) to hard luxury (jewelry and watches), which is becoming a new growth driver amidst market uncertainties [4] - The future development of the Chinese hard luxury market will revolve around three key themes: resilience return, structural differentiation, and value reconstruction [4] Industry Insights - Jewelry and watches are experiencing divergent market trends, with jewelry showing strong resilience during economic fluctuations, driven by classic collections and innovative product strategies [7] - The jewelry market is expected to maintain steady growth in 2024, even as the global personal luxury goods market faces a downturn [7] - The Chinese jewelry market is transitioning into a normalized expansion phase post-pandemic, presenting ongoing growth opportunities despite a slowdown in growth rates [10] Consumer Behavior - Jewelry is increasingly viewed as an emotional anchor and status symbol, with significant sales spikes during emotional occasions like weddings and anniversaries [13] - The Tmall Luxury platform has seen successful launches of new jewelry collections from top brands, leveraging emotional resonance and marketing strategies [13] - Consumer motivations for jewelry purchases are shifting from traditional status symbols to expressions of individuality and emotional connection [27] - In decision-making, design aesthetics and brand prestige are becoming more critical, with consumers valuing cultural significance and craftsmanship [28] Market Dynamics - The Swiss watch industry is facing challenges, with a projected decline in exports in 2024, indicating a phase of adjustment post-pandemic [15][18] - Despite overall market downturns, high-end watch brands are maintaining resilience, with leading brands expanding their market share [22] - The luxury watch market is experiencing a structural shift, with significant growth in female watch consumption and a focus on unique designs and cultural narratives [51] Digital Transformation - The hard luxury market in China is at a crossroads of differentiation and reconstruction, necessitating brands to adapt in retail experience, cultural expression, and digital operations [62] - The year 2025 is seen as a turning point for redefining e-commerce value, with brands focusing on conversion efficiency and user quality rather than superficial engagement [63] - Tmall Luxury is evolving into a digital boutique, enhancing connections between brands and consumers through data insights and social interactions [63][64]