Report guide
The Spring Festival + Valentine’s Day sales season accounts for a large proportion of the gold jewelry industry in the whole year. Through the research and analysis of the end consumption of gold jewelry, it is found that the high prosperity of the industry continues and the brand polarization is obvious, which perfectly confirms our prediction of the industry trend – “aesthetic awakening” & “leading change”.
Key investment points
Industry commonality 1: gram weight pricing and “buy it now” are form, and “aesthetic awakening” is reality.
The proportion of gold priced in grams is increasing rapidly, but the regional differentiation is obvious across the country. Consumers in high-line cities prefer product design, “buy it now” products still show growth, and gram heavy gold in low-line cities returns. Head brand terminals such as Chow Tai Fook have strong control and are clearly divided into the scope of “buy it now” products, which are less affected; Small and medium-sized brands in low tier cities were greatly affected, and their profits further declined. Among the gold priced and sold by gram weight, the proportion of Seiko products is also increasing, and “aesthetic awakening” has become a general trend.
Industry commonness 2: gold shows the trend of jewelry, and the brand is divided at two levels.
With the improvement of gold technology (3D / 5G / gufajin) and the resonance of consumers’ aesthetic awakening, gold consumption has started a new business cycle. Consumers prefer products with good workmanship and strong sense of design, which drives dealers to choose head brands with stronger product power to meet the trend of gold jewelry and youth. At the same time, the clearance of regional small and medium-sized brands has accelerated. The head brand continues to open the gap with small and medium-sized brands in terms of brand strength, product strength and operation ability. The brand polarization is obvious, and the industry concentration is accelerated.
Brand difference: dealers give consideration to brand fashion and store return.
The trend of gold jewelry and younger consumers is obvious, which makes the brand fashion become an important consideration for dealers to choose brands. The four major Hong Kong funded brands, mainland Guangdong Chj Industry Co.Ltd(002345) and Chow Tai Seng Jewellery Company Limited(002867) are more fashionable and more attractive to young people.
Dealers also attach importance to the return of brand stores, and the profitability of brands such as Chow Tai Seng Jewellery Company Limited(002867) , Guangdong Chj Industry Co.Ltd(002345) , Lao Feng Xiang Co.Ltd(600612) , China National Gold Group Gold Jewellery Co.Ltd(600916) , Laomiao and so on ranks high. Although the profitability of Chow Tai Fook sunken channel stores is relatively low, based on the dealers’ recognition of Chow Tai Fook’s strong brand power and terminal operation ability, and the trend of store profitability increasing year by year, the dealers’ willingness to open stores is also continuously increasing.
Investment suggestion: sector investment logic: “aesthetic awakening” and “leading reform” drive the head brand into the “golden” era, and the performance growth and certainty will exceed expectations.
1) Chow Tai Seng Jewellery Company Limited(002867) ( Chow Tai Seng Jewellery Company Limited(002867) . SZ): channel system adjustment, gold products and inlaid products continue to release dividends, and the most enterprising brand has the most marginal increment
2) Guangdong Chj Industry Co.Ltd(002345) ( Guangdong Chj Industry Co.Ltd(002345) . SZ): adhere to the culture of ingenuity + adhere to the original design + inherit the oriental culture, create strong product power, and fully benefit from the consumption trend of “aesthetic awakening”.
3) Chow Tai Fook (1929. HK): product innovation leads brand renewal, channel expansion repeatedly exceeds expectations, and is worthy of being the first brand in the industry.
4) China National Gold Group Gold Jewellery Co.Ltd(600916) ( China National Gold Group Gold Jewellery Co.Ltd(600916) . SH): central enterprise brand, flexible mechanism and rising star.
5) Lao Feng Xiang Co.Ltd(600612) ( Lao Feng Xiang Co.Ltd(600612) . SH): the brand has a long history and is an old brand.
Risk tips: repeated outbreaks at home and abroad, intensified industry competition, fluctuations in gold prices, etc
