As a central city in South China, Guangzhou holds significant advantages in cultural heritage, economic scale, and regional influence. Its prosperity and development not only drives Guangdong Province's economic growth but also makes important contributions to the entire South China region and the nation. As China's southern economic center and commercial hub, its gold and jewelry retail market demonstrates typical characteristics and representativeness.

Against the backdrop of declining gold and jewelry market sales, some brands are experiencing growth while others face challenges. Luk Fook Group's latest retail performance shows nearly 20% same-store sales growth in mainland China during the second quarter of 2025. This partly confirms that "it's not that the market lacks demand, but that traditional supply cannot meet new demands." The gold and jewelry industry faces not absolute market shrinkage, but relative oversupply caused by demand upgrades.

**"Lightweight" Products Make Big Impact Amid Volume Decline and Price Increases**

Standing in Guangzhou's Teemall circular corridor on the third floor's gold and jewelry section, brand stores like Chow Tai Fook, Luk Fook Jewellery, and China Gold maintain bright lighting, but the queues of buyers from the past are no longer visible. Next to the daily gold price sign showing 1,030 yuan per gram, promotional posters advertising "60 yuan discount per gram, 15% off fixed-price items" stand out prominently under the lights.

This scene accurately reflects Guangzhou's current gold and jewelry retail market reality—behind the apparent quietness, a profound industry transformation is quietly occurring.

According to the latest data from China Jewelry & Jade Jewelry Industry Association, China's jewelry market scale reached 778.8 billion yuan in 2024, down 5.02% from the previous year. Gold products accounted for approximately 568.8 billion yuan, representing about 73% of the entire jewelry market.

"Gold jewelry retail volume has declined for two consecutive years, sending very clear signals to brands and franchisees," said Zhen Weigang, Chairman of Guangdong Gold Association and Chairman of Guangzhou Yuebao Gold Co., Ltd. The market performance of "volume decline, price increase" reflects retail brands' proactive adaptation to structural changes in consumer purchasing behavior.

Retail brands have optimized and adjusted their product structures and overall frameworks, demonstrating precise and rapid strategic adjustments to stores. This adjustment represents a positive process of adapting to market changes.

Luk Fook Group noted that due to high gold prices, sales volume of gold products priced by weight has declined, with consumers preferring lighter-weight accessories. Regarding inventory, Luk Fook Group's total inventory value increased 12.2% year-on-year at period end, with gold and platinum inventory rising 22.9% year-on-year, while fixed-price jewelry inventory increased 3% year-on-year.

According to Luk Fook Group's annual results announcement ending March 31, 2025, gold products remain the mainstay across stores, accounting for approximately 70% of total retail sales, with particularly strong demand for gold products in mainland China. In 2025, average transaction values increased across mainland China, Hong Kong, and Macau stores. Compared to last year, mainland stores' average spending per transaction rose from 5,900 yuan to 6,900 yuan, an increase of 15.8%.

**"High Aesthetics" and "Small Investment" Appeal to Young Demographics**

Field visits to Guangzhou's core commercial districts reveal that traditional per-gram pricing models are being disrupted. Over the past few years, whether to price per gram or per piece has been a persistent concern for gold and jewelry retail brands—per-gram pricing offers relatively lower added value, while incomplete information disclosure for per-piece pricing might cause consumer complaints later.

However, this concern is no longer as significant in Guangzhou. A First Luck Jewelry store manager revealed that per-piece pricing products now account for 40% of sales, with young consumers comprising the majority of buyers.

Industry insiders explain that consumer acceptance of per-piece pricing stems from underlying drivers of product innovation and craftsmanship innovation. This innovation makes gold jewelry more appealing to consumers, especially younger demographics.

Increasing numbers of young consumers prioritizing quality, aesthetics, and design drive their acceptance of "high-craftsmanship" per-piece priced gold jewelry. Luk Fook Jewellery's multiple new products are sold at fixed prices, gaining market popularity due to their combined advantages of design appeal, personalization, emotional value, exquisite craftsmanship, and lightweight characteristics.

For example, the "Ice Diamond Radiance Gold" series uses CNC technology to create diamond-like brilliance effects in gold; the "Song Dynasty Heritage" series combines ancient gold filigree craftsmanship with diamond, turquoise, and pearl inlays, interpreting the fusion of tradition and modern fashion.

Local consumers' acceptance of craftsmanship fees has undergone qualitative changes. Gold purchasing demographics trend toward rationality, valuing both emotional worth and practical consumption. In product strategy, leading brands accelerate transformation from "weight-focused" to "quality-focused."

This transformation essentially responds to consumers' emotional needs—when gold prices are transparent and comparable, only design and cultural added value can create differentiated competitive space.

Store observations show Guangzhou brand outlets prominently display investment products like gold banknotes and gold beans. A Chow Sang Sang store employee at Grandview Mall noted that despite high gold prices, most consumers buy on rising trends rather than falling ones. Young people willingly save monthly for one gram gold beans or banknotes with investment attributes, driving purchases.

Zhen Weigang mentioned that gold bar investment product sales grew over 20%, with diversified investment channels also diverting traditional gold buyers. Consumer purchases of lightweight investment gold bars reflect southern investors' preference for "steady accumulation."

**Embracing Digital Transformation: Cultural Empowerment Drives New Consumer "Engine"**

A Guangzhou jewelry brand executive revealed that young customers from social media discovery and social sharing have increased from less than 10% two years ago to 35%. Gold brands previously reliant on department store counters now fully embrace social e-commerce.

"Gold styling guides" on social platforms, special pre-sales in social groups, and even "gold jewelry special sessions" in live streams—new channels not only reduce customer acquisition costs but more importantly reconstruct brand image in ways familiar to young people.

Lao Feng Xiang Jewelry at Grandview Mall displays signs like "Social sharing rewards, follow and share for gifts" to attract local consumers for photos and drive private domain traffic.

For Guangzhou's gold and jewelry enterprises, the real challenge lies not in short-term sales fluctuations but in whether they can embrace new consumption contexts while maintaining gold's intrinsic value. Gold's value as a cultural symbol has never faded; only its expression forms have changed.

Brands that first complete the cognitive transformation "from value preservation to expression" and "from wealth to culture" will have opportunities to capture new growth dividends after the adjustment period.

Zhen Weigang emphasized that the industry should address overcapacity, with enterprises shifting from blind expansion to refined operations, enhancing product added value through technological innovation and brand building. They should also address channel competition conflicts, such as traditional gold stores versus new outlets, and online live streaming versus offline physical stores, while focusing on digital transformation, innovation, and green low-carbon practices.

Currently, Guangzhou's gold and jewelry market explores forward with the distinctive pragmatism and innovation characteristic of Lingnan people, balancing tradition and transformation. Its experiences and lessons will provide valuable reference for the entire industry's future development.