On 29th March 2023, Mr. Conroy Cheng, Vice-chairman of Chow Tai Fook Jewellery Group, addressed the opening session of the 40th World Diamond Congress in Israel, a well-known and highly anticipated industry event organised every three years by the World Federation of Diamond Bourses.
In his speech, Mr. Cheng reflected on the post-pandemic retail recovery of China’s jewellery sector, as well as the outlook for its diamond market and evolving preferences of young Chinese consumers.
“Since a relaxation of pandemic control measures in Mainland, China we have seen signs of recovery in general mobility and retail activity in the Mainland, wealthy consumers are showing a propensity to spend on high-quality luxury items,” said Mr. Cheng. “An upward trajectory that is expected to continue as middle-and high-income population’s per-capita income level continues to rise, brands that know China well and are able to respond to changing consumption patterns have an opportunity to build strong positions in the market.”
Mr. Cheng also observed an emerging practice of self-giving, with young Chinese professionals celebrating personal achievements like a job promotion by gifting themselves a piece of diamond jewellery, and he added: “Guochao (‘national trend’) – which refers to a growing preference among young Chinese consumers for Chinese brands, design and culture – is a powerful force driving jewellery preferences among Chinese consumers.”
Mr. Cheng addressed the importance of ESG as a critical issue for sustaining consumer trust in the diamond industry, and he elaborated: “We are committed in building trusted relationships with consumers by ensuring that they have the information they need to make ethical and responsible decisions when purchasing jewellery to mark the most important milestones in their lives. One key area is making sure that people are aware of the difference between natural and lab-grown diamonds.”