(Yicai International) Feb. 28 — Client demand for gold in China, the world’s largest producer and shopper of the yellow metallic, has been recovering because the lunar new yr vacation, however has not but reached the pre-pandemic stage of 2019.
Gold shopping for has elevated because the vacation, as in-store gross sales picked up after China relaxed its Covid-19 controls late final yr. The wave of Covid-19 instances within the fourth quarter of 2022 led to a drop in footfall — folks favor to purchase gold in bodily shops — and a subsequent decline in gross sales.
“However the enterprise hasn’t recovered to the pre-pandemic stage but,” Chen Shouping, who’s accountable for Chow Tai Seng Jewelry’s gold merchandise lineup, instructed Yicai International. “We count on a gradual restoration between this yr’s first and second quarter.”
Chow Tai Seng’s retail enterprise grew about 20 p.c in January from a yr earlier, the Shenzhen-based agency mentioned on Feb. 6. The vacation was a excessive level for gold jewellery, Chen famous, including that gold shopping for is not going to be impacted a lot even when costs are at a historic excessive.
Enterprise regularly improved across the time of the vacation, in keeping with a salesman at a well known Chinese language jewellery model’s retailer in Shanghai’s Nanjing East Highway buying avenue. She additionally mentioned her month-to-month wage was CNY20,000 (USD2,900) in January, the very best previously yr.
Gold jewellery shouldn’t be solely dazzling and complicated but in addition a option to retailer wealth, Chen mentioned. The more and more sturdy must keep away from the depreciation of money has develop into a key cause for folks to purchase the yellow metallic, he added.
Furthermore, the age of Chinese language gold and jewellery patrons has been falling lately. Most in-store patrons are aged 25 to 50, in keeping with Chen. These aged 35 to 50 spend essentially the most, adopted by 25- to 35-year-olds. Younger shoppers care extra about an merchandise’s visible attraction.
Editors: Shi Yi, Futura Costaglione
