The Zhitong Finance App learned that Huatai Securities released a research report saying that against the backdrop of continuing to rise in international gold prices and a slow recovery in consumer confidence, the mentality of value preservation is driving a relatively rapid growth in gold and jewelry consumption. High-end jewelry contains opportunities: Reviewing the development process of high-end jewelry in Europe. At the stage of economic, cultural, and consumer changes, high-end brands grasp changes in demand, build on their own positioning, and continue to occupy users' minds with products, services, and brands, and can go through the cycle and continue to grow. Most of China's listed gold and jewelry companies are positioned in the mass market, and their products are cost-effective. Through flexible channels and price strategies, leading brands can continue to increase their market share. At the stage of consumer differentiation, I am optimistic about jewelry leaders that are both stylish and cost-effective.
Continuously meeting consumer needs and capturing consumers' mentality is the key for high-end brands to move through the cycle. Craftsmanship and materials are a medium for high-end jewelry brands to express their opinions. Cartier, Van Cleef & Arpels, and Bulgari have positioned themselves in the development process and continue to meet consumers' demand for jewelry through process innovation and the application of different materials (both material and spiritual). China's gold and jewelry industry started late. Based on the ancient gold process and taking advantage of the upward trend in gold prices, it is expected to help jewelry brands quickly enhance their brand power and complete overtaking of major overseas brands. However, challenges and opportunities coexist. High-end jewelry brands in China are still in their early stages, and brands still need to continue to iterate on products, services and marketing to consolidate consumer mentality.
Consumption is divided, and they are optimistic about jewelry leaders that are both tasteful and cost-effective. China's jewelry industry is still in its infancy, and Huatai Securities is optimistic about leading jewelry companies that are both stylish and cost-effective. The water shell model and competitive shock have more opportunities than challenges for brands, and are expected to drive brands to upgrade their products. “Original” and “self-developed” new categories have become new grippers for brand development.
Chow Tai ?$#@$ (01929) continues to upgrade its brand power while covering the public through multiple brands and multiple stores. Using filigree as a starting point, Chao Hongji continues to deepen consumer mentality and make more efforts to enhance brand tone in terms of store type, products, and marketing. By increasing the share of its own IP, Chow Tai Sang (002867.SZ) launched a series of products such as National Treasure, Monet, Van Gogh, and Pokémon to enhance product cultural content and premium. Lao Fengxiang (600612.SH) also focuses on developing “three high” products with high technological content, high brand recognition, and high added value, such as 3D, 5G, ancient gold, and colored treasure inlays.
Risk warning: Gold prices fluctuate at high levels, economic growth slows down, and market competition intensifies.