China 2016: CATEGORIES IN BRIEF | Jewelry Retail
VALUE INCREASES SHARPLY DESPITE SLOWER ECONOMY
With an increase of 61 percent, following a 2 percent decline last year, Jewelry retail tied with personal care as the category with the largest value appreciation in the BrandZ top 100 Most Valuable Chinese Brands 2016.
The four brands that contributed to this result, in order of their ranking are: Lao Feng Xiang, Eastern Gold Jade, Ming Jewelry, and CHJ Jewellery, appearing in the BrandZ China Top 100 for the first time this year.
Several factors explain this acceleration in value during a year of economic deceleration. The first is the optimistic attitude of consumers who continued spending both on daily needs and big-ticket items, according to BrandZTM research conducted late in 2015. In addition, certain jewelry, gold and jade, in particular, has strong cultural meaning, and jewelry also is a secure investment, relative to the volatility of the stock market.
At the same time, jewelry retailers faced increased competition from e-commerce sites and sought opportunities to innovate and expand organically or through acquisition. With the purchase of Shenzhen Zhuoyi Jewelry, Ming Jewelry plans to develop a brand that appeals to young people. CHJ Jewellery acquired several brands over the last few years.
Lao Feng Xiang enjoyed its first full year with a flagship store on New York City’s Fifth Avenue. It also opened two stores
in Hong Kong, including its largest unit outside of the China mainland, where the brand operates around 2,800 stores. Lao Feng Xiang is investigating store openings in Canada, the UK, and New Zealand.