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Over the past decade, the luxury sector has experienced unprecedented growth in China. As the country’s consumption structure evolves, a rising consumer focus on cultural identity, emotional resonance and lifestyle alignment is repositioning jewellery and watches as strategic pillars for long-term brand development. For international brands, this shift goes beyond distribution — it is about building brand ethos, cultural affinity and enduring consumer mindshare.
China is no longer a market that simply wants to be seen, but one that demands to be understood. Increasingly, global brands are moving away from replicating established playbooks, embracing localisation, digitalisation and youth engagement. These efforts reflect a broader ambition for high-quality, sustainable growth.
Watches and jewellery, known to the industry as hard luxury, share distinctions rooted in intricate craftsmanship, enduring value and uniquely complex supply chains. Unlike fashion and leather goods, often classified as soft luxury, hard luxury represents more than just status, it reflects cultural significance and long-term investment value.
Underlying both sectors is a highly specialised and layered supply chain. From the mining, cutting and polishing of natural diamonds, to the sourcing of precision components for mechanical movements, the manufacturing process is deeply reliant on skilled artisans. In watchmaking, master craftspeople assemble and calibrate each timepiece by hand — a level of technical complexity that not only drives cost, but underpins brand differentiation and ensures a competitive edge.
While jewellery and watches share fundamental characteristics, recent market trends show a clear divergence. Jewellery continues to post resilient growth, supported by a broad product spectrum and diverse consumer base, with segments such as coloured gemstones and bespoke pieces experiencing sustained demand. High-net-worth individuals (HNWIs), in particular, are showing rising interest in rare stones like Colombian emeralds and Kashmir sapphires. In response, jewellery brands are expanding elevated customisation services to meet the consumer appetite for personalisation and value-added exclusivity.
Contrastingly, the watches sector has entered a correction phase post-pandemic. China, once a major growth engine, is seeing slower recovery amid lingering consumer caution. On one hand, the shift towards e-commerce during lockdowns has forced watchmakers to accelerate digital transformation; on the other, speculative price surges around certain iconic models peaked in 2021, but have since declined, prompting more conservative investment behaviour among affluent buyers.
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