Before we delve into this topic, let’s answer three quick questions:
- When buying jewelry, would you prioritize gold jewelry?
- Do you think gold jewelry on the market is well-designed?
- If you were a jewelry brand owner, would you choose gold as your material of preference?
Recently, each sharp fluctuation in gold prices has become a headline topic, capturing public attention. Meanwhile, as gold prices continue to rise significantly, sales data for Chinese gold jewelry brands have shown a decline, with some even experiencing a wave of store closures.
While Chinese consumers have a strong affinity for gold, and more young people are choosing gold jewelry, a common complaint remains: designs are often uninspiring and overly traditional.
However, Luxe.CO has learned about a new gold processing technology called “Hard Pure Gold” that could potentially revolutionize the Chinese gold jewelry industry:
“Having worked in this industry for nearly 30 years, I truly feel that this time, we might be on the verge of another significant leap forward for the entire Chinese gold jewelry industry.” This “leap forward,” as described by Roland Wang, CEO of the World Gold Council’s China Region, isn’t just about increased gold consumption or brand sales. It encompasses a comprehensive upgrade across the entire industry chain, from design and manufacturing to market pricing, brand supply, and consumer demand.
Roland Wang, CEO of the World Gold Council’s China Region
A Revolutionary Chinese Innovation: Lighter Gold Jewelry with Larger Pieces
When discussing the overall development of the gold jewelry industry, beyond the attention-grabbing fluctuations in gold prices, one crucial factor that profoundly impacts jewelry design and brand growth has long been overlooked:
Gold processing technology — the only variable that transforms raw gold into jewelry.
Thanks to China’s passion for gold and the highly competitive domestic supply chain, the “Hard Pure Gold” processing technique was born.
This innovation combines electroforming and lost-wax casting processes to create hard pure gold jewelry with a minimum purity of 990‰ and a Vickers hardness of at least 60 HV. In essence, this gives hard pure gold unprecedented creative potential.
Traditional pure gold is soft and prone to deformation, but hard pure gold enables jewelry to be thinner, lighter, harder, and shinier.
Conventional gold jewelry has always been constrained by gold price volatility, but hard pure gold technology uses less gold for the same-sized products.
This means that with hard pure gold, consumers can purchase more intricately designed jewelry within the same budget.
“From our observations and recent retail surveys, we’ve confirmed that the hard pure gold category is currently the fastest-growing segment,” Wang noted in the interview.
Luxe.CO: Is Hard Pure Gold a Brand-New Technology?
Roland Wang: From a broader perspective, the hard pure gold category has existed since before the pandemic.
Initially referred to as 3D products, they featured hollow pendants or fortune beads, but at the time, the technology was underdeveloped, resulting in limited forms and less impressive designs.
Before the pandemic, when gold prices were still relatively low, technology improved, and 5G Gold emerged in Shenzhen’s Shuibei market. Lightweight, geometric, minimalist styles with the texture of karat gold began to appear on a large scale.
About four or five years ago, Ancient Gold started trending and became the fastest-growing category for a time. However, in the past two years, as gold prices have surged, the Ancient Gold market has matured, and its growth has slowed.
Subsequently, breakthroughs in hard pure gold technology led to a flourishing variety of jewelry designs. Additionally, relevant regulations and standards for this category are gradually being established.
From our observations and retail surveys, hard pure gold is the fastest-growing category.
Luxe.CO: How Large Is China’s Gold Jewelry Market, and What Is Hard Pure Gold’s Share?
Roland Wang: The current consumption volume of China’s gold jewelry market is about 600 tons per year.
According to last year’s gold jewelry market research, Ancient Gold accounts for 27.9% of retail store inventories. Although hard pure gold hasn’t surpassed Ancient Gold in total volume due to its lighter weight, it already represents 22.6% of the market. Over the past three years, hard pure gold has been the fastest-growing and quickest-to-market category.
At present, Ancient Gold and hard pure gold together represent roughly half of the market, leaving significant room for further development.
From a Global Perspective, Where Does Chinese Gold Jewelry Stand?
During our conversation with Roland Wang, we uncovered the arduous journey of China’s gold jewelry industry. From large-scale efforts like the digital transformation of factories to seemingly minor details like lighting on retail counters, the industry has absorbed a wealth of knowledge from global markets over the past two decades.
Wang vividly recalled his overseas visits in the mid-1990s, when he was deeply impressed by Italy’s exhibitions and industrial capabilities, which served as a wake-up call for him.
China’s modern gold jewelry industry started relatively late, and there remains a gap between its development level and that of mature markets like Italy. Bridging decades of difference requires a comprehensive buildup across the supply chain and retail sectors, and achieving a leap forward depends on the right opportunities.
If the past two or three years of upgrades in China’s gold jewelry market were driven by rapidly expanding demand, the next “leap forward” is likely to be sparked by Hard Pure Gold technology.
“I believe we’re currently in the midst of a significant leap, which has been building over the past five years,” Wang explained.
He elaborated on the rarity of such leaps. “The development of the gold jewelry industry progresses in steps. At a certain point, a sudden leap occurs, which sustains for some time, as further rapid advancements become increasingly difficult.”
“When will a leap occur? It’s not something you can force. Sometimes it takes a decade of factors aligning.”
Above: Hard Pure Gold Jewelry
Luxe.CO: How Does the Global Gold Jewelry Industry Develop?
Roland Wang: When discussing the design and craftsmanship of gold jewelry, Italy is the global leader, followed by Turkey. In the past, Chinese gold jewelry rarely drew global attention.
These two regions excel due to their robust manufacturing foundations and rich cultural and artistic heritage.
The 1990s marked a breakthrough period for Italian gold jewelry, which was at its peak. The market was thriving, consumers had disposable income, and factories were motivated to innovate.
I entered the gold industry in the mid-1990s and encountered Italian gold jewelry as early as 1995. I attended three or four exhibitions annually, and within six months of each visit, I would see many new processes emerge.
However, from 2000 to 2010, Italian gold jewelry experienced a stagnation, with few innovations that could excite or surprise people.
Luxe.CO: How Would You Define the Stages of China’s Gold Jewelry Development?
Roland Wang: In 2002, China opened its gold market.
At that time, we first promoted 18-karat gold, knowing that consumers wanted fashionable designs. However, domestic processing capabilities were not yet sufficient, so we imported finished products from Italy. We also specifically targeted wedding scenarios with gold wedding jewelry, which didn’t require as high a design standard.
By 2008, factories had accumulated enough experience to innovate and improve their craftsmanship. That was when we launched the “Only Gold” collection, which elevated the perception of pure gold as a premium material.
It has been 15 or 16 years since 2008, and today’s gold jewelry is far more aesthetically pleasing than the products we promoted back then.
In my opinion, the improvements in craftsmanship, product variety, quality, and presentation, as well as the rising popularity of gold jewelry, have all been most noticeable in the past five years.
Above: World Gold Council Hard Pure Gold Jewelry Appreciation Salon
Luxe.CO: What Factors Enable a Leap Forward in the Gold Jewelry Industry?
Roland Wang: Firstly, its the accumulation of products in the market. A certain amount of time is needed for the market to accumulate sufficient product variety and maturity.
Secondly, it’s technological advancements. The industry has gained more exposure to international craftsmanship, improving the understanding of gold jewelry processing. Over the years, new machinery and techniques have been introduced and refined. Interestingly, many of these techniques didn’t originate in jewelry-making but came from other manufacturing sectors.
For example, many Italian 18-karat gold factories adopted technologies from the textile industry, as Italy’s textile sector was the most advanced in Europe and heavily reliant on mechanical innovations.
Additionally, talent capable of fine-tuning these machines is crucial. This type of expertise was once unavailable in China. Over the past few years, as restrictions limited the export of advanced machinery, domestic markets began to invest in such equipment. Now, not only do we have access to these machines, but we also have skilled operators to optimize their use.
Thirdly, it’s the People. The emergence of second- and third-generation factory managers has broadened their perspectives and heightened their standards for craftsmanship.
On the design front, the previous model of training designers in-house often led to creative stagnation. Today, brands commission freelance designers—many of whom have studied abroad. These young professionals started as freelancers, then formed their own studios, bringing fresh perspectives from other industries into gold jewelry design.
These factors collectively enable advancements in production and processing capabilities. The improvements over the past five years, in particular, have been remarkable.
Luxe.CO: Will China’s Hard Pure Gold Technology Be Competitive Globally?
Roland Wang: We’ve observed that Hard Pure Gold products are particularly attractive to international consumers. This innovation could introduce an entirely new category to the global gold jewelry market.
For instance, one of our colleagues at headquarters, who previously didn’t purchase Chinese gold jewelry, recently bought a piece of Hard Pure Gold jewelry to take home. His wife was thrilled, and at a gathering, her friends eagerly asked where it was from. He even wrote to thank us for the recommendation.
Similarly, a senior analyst who had visited China multiple times but never bought Chinese gold jewelry changed his mind after seeing Hard Pure Gold in Shenzhen’s Shuibei market. He remarked that it was unlike anything he had seen before.
The presentation of gold jewelry has reached a level that Western consumers now find appealing and distinct from earlier offerings.
Above: Shenzhen Luohu Shuibei International Jewelry Trading Center – Scene of Gold Consumption
Differentiation in Gold Jewelry Brands and Products Still Has Room for Improvement
China’s gold jewelry products have gone from being unnoticed on the global stage to now attracting interest from international industry professionals—a clear testament to improved product quality.
However, for Chinese gold jewelry brands to gain competitiveness in mature overseas markets, more is needed beyond technological and supply chain advancements. Soft standards, such as industry-wide aesthetics and consumer appreciation of design, require time to mature. A strong, truly influential gold jewelry brand is essential to earning greater global recognition.
“Products lack stratification,” remarked Wang, describing one of the key challenges currently faced by Chinese gold jewelry brands.
From brands like Laofengxiang, which focus on traditional Ancient Gold, to designer jewelry brands such as YIN and MONOLOGUE, which feature a more contemporary style, the evolution of Chinese gold jewelry is beginning to shift toward design-driven innovation. However, this journey is still in its early stages.
If the emergence of Hard Pure Gold represents readiness for a leap forward in the supply chain, brand building remains the more significant challenge confronting the industry.
In 2023, Luxe.CO’s fashion research institute Luxe.CO Intelligence released an exclusive study titled “2023 Gold Jewelry Brand Observation”. The report posed a pivotal question:
Faced with five “new” opportunities brought about by the surge in gold consumption—namely, new target audiences, new wearing needs, new craftsmanship styles, new brand positioning, and new opportunities to capture consumer mindshare—the industry must address a critical challenge:
How can it transform from traditional gold shops into contemporary jewelry brands?
The report identifies five stages in the development of China’s gold jewelry industry and distills five key strategies for strengthening gold jewelry brand-building, drawing insights from leading domestic and international examples.
Luxe.CO: Many leading Chinese gold jewelry brands are thriving. However, with the rising gold prices, are they uncertain about their future direction?
Roland Wang: I wouldn’t say they’re uncertain.
Strategies vary depending on the stage of development. Over the past decade, the market was in an expansion phase—what we might call a land-grab era. In such a large market like China, the first priority was to achieve scale.
Currently, the annual demand for gold jewelry is around 600 tons, a figure that has been steady for many years. The room for further growth in volume is now more limited.
Luxe.CO: What do you see as the next focus for Chinese gold jewelry brands?
Roland Wang: The next step will undoubtedly be greater emphasis on individualization and premiumization. In my view, the segmentation of gold jewelry products will become increasingly evident.
Around 2000, the owner of the largest jewelry retail chain in the U.S. visited China. He asked me whether all the gold shops in Beijing were owned by the same person.
I was taken aback because, from his perspective, the shops and their products all looked identical. To him, they seemed like a single entity. Why? Because the products lacked differentiation.
Over the past 20 years, the gold jewelry industry has made some progress. At the very least, it has achieved a scale unlike anything in the past. Market positioning and consumer impressions of individual brands have started to diverge. Although the stratification is still nascent, the foundation has been laid.
Conclusion
Built on decades of accumulated advancements in technology, talent, and supply chains, China’s gold jewelry industry has continuously evolved. As a jewelry category, gold products face the demands of increasingly discerning consumers and a booming fashion market, which simultaneously challenge and enrich the industry.
Hard Pure Gold has the potential to drive a transformative shift in the industry, from incremental improvements to qualitative leaps. This transformation presents opportunities and challenges alike, offering a moment of reflection for industry players and brands interested in gold jewelry:
- How can we create designs that resonate with contemporary and global aesthetics?
- How can we establish and elevate gold jewelry brands?
- How can we fully leverage the capabilities of new technology and expand into global markets?
｜Image Credit: World Gold Council, Shenzhen Luohu Official WeChat Account
｜Editor: Elisa
