Securities Times reporter Wu Jiaming and Hu Huaxiong

　　Passing through Bei Li North Road in Shuibei District, Luohu District, Shenzhen, there is a particularly conspicuous "wall": an office building transformed from an old industrial factory, and the exterior walls are covered with signs of various gold and jewelry companies.

　　"Chinese jewelry looks at Shenzhen, Shenzhen jewelry looks at Luohu, Luohu jewelry looks at Shuibei", one sentence sums up the important position of the Shuibei area in the national gold jewelry industry.

In the past year or two, gold, silver and jewelry commodities have always been a dazzling "landscape" in social consumption data.

However, the epidemic has affected many industries, and the same is true for the gold and jewelry industry.

In the first quarter of 2022, although the overall gold and jewelry industry is still growing, the growth pressure it faces has begun to increase, and some large-scale listed companies in the industry have also experienced a decline in performance growth due to factors such as the epidemic.

　　In the short term, industry merchants expect to achieve a certain degree of sales recovery through the upcoming "May Day" holiday.

In the future, as the main consumer force tends to be younger, the gold and jewelry industry is also actively researching and judging, seeking innovations and changes in terms of brands, products, channels, and marketing, and making innovations and breakthroughs.

　　The impact of the epidemic is obvious

　　According to data released by the National Bureau of Statistics recently, the retail sales of gold, silver and jewelry above designated size in March 2022 were 20.5 billion yuan, a year-on-year decrease of 17.9%, the largest decline among all types of retail consumer goods.

However, in the first quarter of 2022, this type of retail sales still increased by 7.6% year-on-year.

　　According to industry insiders, the main reason for the decline in retail sales of gold and silver jewelry above designated size in March was the Shenzhen epidemic in the middle of the month.

The largest professional jewelry trading market in China - Shuibei International Jewelry Trading Center is located in Luohu District, Shenzhen.

Affected by the epidemic, both the shipment and purchase of Shuibei merchants have been affected.

　　Recently, a Securities Times reporter walked into several gold and jewelry stores in Shuibei and found that there were not many people on the scene.

Several merchants said that compared with the beginning of this year and last year, business has not fully recovered.

　　Zheng Li (pseudonym) is a senior jewelry inlayist in a jewelry company in Luohu, Shenzhen, whose company mainly targets domestic customers.

He told reporters that since the Spring Festival, the inlay processing orders received by the company have decreased, and it has become more obvious in the past two months. The operating rate of the company is insufficient, and he is obviously not as busy as before.

A senior sales person from a jewelry outlet in Shenzhen told reporters that the sales of the store where they were located were not very good in the recent period. The overall sales in January and February this year were quite satisfactory, with the monthly sales being close to 1 million yuan, but the operation in March was not as good. Very bleak, monthly sales dropped sharply to more than 100,000 yuan, and sales rebounded in April.

　　The reporter found that the epidemic and changes in global gold prices have disrupted the production and purchase rhythms of many gold jewelry wholesalers and retailers.

Wang Lixin, CEO of the World Gold Council China, said in an interview with reporters that after the Spring Festival, the domestic epidemic has spread in many places, especially in some key markets.

"As far as I know, the epidemic control has had a great impact on the entire gold and jewelry industry. The first direct response is in retail. Due to restrictions on travel and concerns about the future economic situation and living pressures, consumers' The desire to buy is suppressed and the willingness to consume is reduced. The second impact comes from the outside world. After March, due to the global inflationary pressure and the Federal Reserve raising interest rates, it has a great impact on the global gold price. For the gold and jewelry industry, its stocking pressure It is very large, and many wholesalers dare not purchase because the price changes too fast. In addition, since the sales before the Spring Festival were not bad, many colleagues replenished the goods after the Spring Festival, but the sales stopped after the replenishment, which was immediately reflected in the wholesale and production. At the processor level, business has dropped significantly.”

　　Listed companies' performance growth slows down

　　In the capital market, the performance of listed companies in the gold and jewelry industry has also undergone some changes.

2021 can be described as a year of recovery for the gold and jewelry industry, with the entire industry gaining recovery growth.

According to the statistics of the Securities Times reporter, among the 14 listed companies in the Shenwan jewelry industry in the A-share market, most of the companies have a positive growth in their net profit in 2021, and some companies have even doubled their net profit attributable to their parent companies year-on-year.

　　However, in the first quarter of 2022, although the overall gold and jewelry industry is still growing, the growth pressure it faces has begun to increase, and some large-scale listed companies in the industry have also experienced a decline in performance growth due to factors such as the epidemic.

　　The performance data disclosed by Chow Tai Fook, a gold jewelry leader listed on the Hong Kong stock market, showed that the company's retail value in the first quarter of 2022 increased by 8.5% year-on-year, of which the retail value in mainland China increased by 11.5% year-on-year, and the same-store sales in mainland China fell by 11.3% year-on-year.

According to data disclosed by Luk Fook Group, another Hong Kong-listed gold and jewelry company, the company's overall same-store sales in the first quarter of 2022 fell by 8% year-on-year.

　　In terms of A-share gold and jewelry listed companies, the growth rate of many companies in the first quarter of 2022 has declined significantly compared with that in 2021.

For example, the announcement recently disclosed by China Gold showed that the company's revenue in the first quarter of 2022 increased by 8.02% year-on-year, and net profit attributable to the parent increased by 22.06% year-on-year.

In the past 2021, China's gold revenue increased by 50.23% year-on-year, and the net profit attributable to the parent increased by 58.84% year-on-year.

According to data previously disclosed by another A-share listed company, Dia, the company’s revenue in the first quarter of 2022 will grow by 12.61% year-on-year. In the past 2021, Dia’s revenue has grown by 87.57% year-on-year.

　　Growing demand for national trendy products

　　The upcoming "May Day" holiday has become an important season for business promotions.

In recent years, the Shuibei gold jewelry professional market has undergone some changes, from the previous wholesale to wholesale and retail simultaneously.

In the gold jewelry stores in many large shopping centers in Shenzhen, news of the "May 1st" holiday promotion abounds.

　　"Judging from the sales pattern of the past year, except for the second peak season after the Spring Festival, it is actually from mid-April to the May Day holiday, and then we have to wait until '5.20'." Wang Lixin said, "We understand that So, from manufacturers and processors to retailers, they all expect a certain degree of sales recovery in June and July."

　　Last year, wedding gold jewelry was one of the main sales forces in the gold market. Since the beginning of this year, the international gold price has remained at a high level, coupled with strong risk aversion, the demand for pure gold jewelry, ancient gold and investment gold bars has increased.

The reporter found that a gold jewelry store in Jinzhan Jewelry Plaza was very popular.

The sales staff told reporters that from the retail side, the sales of gold jewelry in the first few months of this year increased by nearly 20% year-on-year.

In the Shuibeijinzao shopping mall, the reporter also saw "bloggers" with online platforms coming to pick the goods, and they were busy calculating how much profit there was.

An "Internet blogger" said that gold jewelry, which was once regarded by young people as "scumbags", is gradually being favored by the post-90s and post-00s.

In addition, in recent years, major brands have injected ancient craftsmanship and Chinese elements into the design of gold jewelry. They not only adopted new crafts such as 5G gold, 3D hard gold, and ancient gold, but also launched a variety of trendy styles and linked articles. Create and market through various live broadcast platforms and social platforms.

In Shuibei, the reporter found that various stores have established live broadcast bases.

　　Yuehao Jewelry is one of the leading wholesalers of gold jewelry in Greater China.

Dai Shichang, general manager of Yuehao Jewelry, told reporters that after the epidemic, many brands strengthened the layout of the sinking market, implemented the provincial model, and accelerated the expansion and management of third- and fourth-tier cities, thereby increasing the brand's market share.

In addition, we also found that brand customers are paying more and more attention to the iterative upgrade of craftsmanship and design. With the increasing demand for national trendy gold products in the consumer market, the design, research and development and technological production requirements of the brand supply chain are also increasing.

　　In response to the changes in the market, Zhou Defen, President of Yuehao Jewelry, said, "The change in the order volume actually represents the change in market demand and the change in the consumer group of gold jewelry. For example, the main consumer of gold jewelry in China is developing towards a younger age. Among the main consumer groups in Jindian, the consumption ratio of the 25-35-year-old group reaches 76%, and their views, needs, preferences, consumption habits, etc. are all changing. All we can do is to observe the trends behind the changes, from which Seize opportunities. On the one hand, follow the market trend, maintain excellent quality and service, and meet the existing market demand. On the other hand, we must study and judge the general trend, and make innovations and breakthroughs in brands, products, channels, and marketing.”

　　Wang Lixin said that the impact of the epidemic actually exceeded the psychological expectations of industry practitioners.

"Our gold and jewelry industry may also control inventory at the retail level. If the retail level changes the way of stocking, it is more inclined to small batches and multiple varieties, then production and processing enterprises and wholesale enterprises must also make corresponding measures. Adjustments. In addition, gold and jewelry companies should also increase investment in online business, especially at the retail level, and increase sales through digital media and online marketing. At the same time, practitioners should pay closer attention to changes in gold prices.”