Source: CCTV.com
11-10-2008 15:35
The yellow metal not only stands for wealth, but also adds up to beauty. That tells you why gold jewelry has been so popular in China through the years. In this next and final segment, we focus on gold jewelry, a lucrative and beautiful market.
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| Gold is China's most coveted and precious metal-dating back to ancient times. It's a symbol of glamour and wealth. Treasured by everyone. |
Gold is China's most coveted and precious metal-dating back to ancient times. It's a symbol of glamour and wealth. Treasured by everyone.
Zhao Bin, Executive President of Rich Gold Investment Co., Ltd. said "Chinese people have a long tradition of wearing gold jewelry. When a child is born, people are likely to send a gold lock, or a gold animal sign as a congratulations gift. It shows the universal acceptance and value of gold jewelry."
One customer said "This is a luck-change bead, which can bring good luck for my child."
One customer said "Today is my boyfriend's birthday, and I want to buy a present for him."
Gold consumption in China has enjoyed robust growth in recent years, climbing around 20 percent annually. It surpassed 300 tons in sales last year, making China the 2nd highest ranking gold consumer in the world. And even though gold prices are increasing, that has not dampened demand.
Wang Chunli, General Manager of Cai Bai Jewelry Co. said "Our sales has jumped in four years, from 1 billion yuan in 2005, 1.5 billion yuan in 2006, 2 billion yuan in 2007, and 3 billion yuan so far this year. Every year we are growing at an accelerated pace. This year, the growth rate could reach even 60 percent. Consumers are very wise with their purchase decision. If you buy a jewelry, it can be worn. And at the same time, gold keeps its value."
But such a rosy picture, was not always the case. Chow Sang Sang, one of Hong Kong' largest jewelry maker, describes life in the early days when they first entered the mainland market.
Emily Li, Brand General Manager of Chow Sang Sang Jewelry Co., Ltd. said "At that time, China was still a regulated market, from mining manufacturing to retailing, all areas were centrally control. That meant retailers had to get licenses. Also in the 1993, you cannot easily get gold. At that time, the development in just passing through the duty free shops."
However, the government's move to open-up China's gold market, especially the establishment of the Shanghai Gold Exchange in 2002, unleashed demand. And many have scrambled for a piece of the lucrative business.
