Visitors check out gold jewelry for weddings during an expo in Beijing in March. ZHANG YU/CHINA NEWS SERVICE
Gold rings, earrings and necklaces have always been the go-to trio for traditional Chinese weddings. However, breaking away from tradition, Zhou Xiao and his wife are turning heads by considering gold bars for their upcoming wedding.
Their reasoning? "It's a smart choice — no extra fees and they hold their value," they said.
Shuibei community in Shenzhen, Guangdong province, also stood out as a favored destination for engaged couples seeking budget-friendly wedding gold. As the wedding season approaches, particularly the week before the National Day holiday (Oct 1-7), a surge of customers, predominantly young couples, flocked to buy items like dragon- and phoenix-themed bracelets, necklaces and other bridal jewelry. Local shop owner Li Yang said there was a notable uptick in customer traffic leading up to the holiday period.
Despite the backdrop of escalating gold prices, industry insiders noted a growing proportion of gold being utilized in weddings, as demand for wedding and gift-related jewelry is often viewed as essential in traditional Chinese culture, though with consumers now increasingly prioritizing cost-effectiveness.
Despite weaker gold jewelry sales since the year began, the World Gold Council predicts that the yellow metal will continue to dominate China's looming jewelry retail sector, with the proportion rising from 59 percent in 2020 to 66 percent in 2024.
The share of gold used in weddings is also expected to climb from 19 percent in 2022 to 24 percent in 2024.
Nevertheless, these figures do not necessarily signify an increase in demand, the WGC said in a recent report. The report suggests that amid the overall cooling of gold jewelry consumption, consumers tend to prepare stable budgetary allocations for jewelry for essential uses like nuptials, and such consumer behavior is driving up such use of gold's proportion in overall gold jewelry sales.
The wedding gold market is in a state of continual evolution, joint research by the WGC and China Gold News showed. Their research results underscored a shift in purchasing dynamics for wedding jewelry. Unlike in the past, where decisions were largely influenced by parents and elders, the current trend sees newlyweds taking charge of purchases, with individuals aged 18 to 35 assuming primary decision-making roles in wedding consumption scenarios. This shift is expected to significantly impact jewelry retailers' marketing strategies.
Zijin Mining's wedding gold brand Zijin OG highlights the significant shifts in consumption habits among the younger generation. It said such individuals seek novelty, unique experiences, self-expression, personalized tastes and active participation in the production process, all while closely tracking market trends. Businesses are urged to focus on delivering customized products and premium services to engage effectively with the new generation of young consumers and delve deeper into the market, it said.
"I prefer purchasing gold bars from the bank over paying hefty premiums to brands. When I need jewelry such as for wedding use, I engage my preferred designer to craft it. The cost for a simple design typically ranges from 10 yuan ($1.4) to 35 yuan per gram, proving to be a cost-efficient approach. I often invest in gold to save money, opting for small-weight gold bars or gold nuggets," Zhou said.
Zhou and his wife are part of a growing trend. Instead of buying jewelry directly, many young individuals opt to accumulate gold nuggets or bars, as the price of gold nuggets combines the spot gold price with minimal labor costs. Once a certain weight is reached, they visit a workshop to melt the gold nuggets and fashion them into desired jewelry styles. This approach allows them to meet their consumption needs while retaining the value of their investment as gold prices rise.
The WGC report hints at a cautiously optimistic future for the gold jewelry market. Amid intense competition and closures of stores with weak product competitiveness and shrinking profit margins, there lies an opportunity for industry-wide advancement that needs product innovation, improved digital marketing and promotion, it said.
