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Tag: Jewellers

  • South Korean Jewelry Brands Pivot To Lower-karat Gold Amid Rising Prices

    South Korean Jewelry Brands Pivot To Lower-karat Gold Amid Rising Prices

    As gold prices continue to rise, South Korean jewelry brands are increasingly leveraging lower-karat gold and alternative materials to attract younger, budget-aware customers.

    Market Shift to More Affordable Options

    The market, which has traditionally been dominated by 14k and 18k products, is witnessing a surge in the availability of more cost-effective 10k, 9k, and even 5k gold items. These lower purity items, which contain less gold than the 24k gold standard, are assisting brands in maintaining their pricing strategy without compromising on design aesthetics.

    Leading retailers such as Lloyed, managed by E-Land Group’s E-World, have successfully targeted younger consumers by broadening their range of “light gold” products and silver jewelry.

    Since the introduction of 5k gold in late 2023, Lloyed has expanded its collection to include diverse products such as rings, necklaces, earrings, and anklets. This expansion has led to a 27 percent year-over-year increase in sales for its light gold and silver collections in the first half of 2025.

    A representative of Lloyed noted the company’s strategic move towards practical materials in the face of fluctuating gold prices has found favor with younger customers. “Diversifying beyond a product range focused exclusively on 14k and above has allowed us to address the evolving consumer demand effectively,” they said.

    Adapting to Changing Demographics

    Luxury brand Didier Dubot, known for its prominent positioning in high-end department stores, has also made changes to cater to younger demographics. The brand now offers 10k custom-made options in its couple ring line. A representative from Didier Dubot emphasized that their aim was not merely about providing affordable options, but also about introducing new customers to the brand.

    Some brands are exploring the concept of dual series. MiniGold, for instance, offers a premium series composed entirely of 14k gold alongside a “Smart Daily Line.” In the latter, silver pieces are gold-plated with only the earring posts made from 14k gold.

    The price difference between the two lines is significant. One style of 14k earrings is priced at nearly 1.3 million won (US$1,000), while the Smart Daily version is affordably priced under 200,000 won (US$150).

    Industry professionals point out that price-sensitive consumers, particularly those in their twenties and thirties, are the driving force behind this diversification. One executive commented, “While luxury brands have raised prices in line with the increasing gold prices, mass-market jewelry lines are innovating with materials and design to maintain accessibility.”

    With affordability now being considered as crucial as aesthetics, South Korea’s jewelry market is redefining luxury to cater to a generation that values cost-effectiveness over karats.

    Questions & Answers

    Why are South Korean jewelry brands moving towards lower-karat gold?
    Due to rising gold prices, these brands are utilizing lower-karat gold and alternative materials to maintain price points while meeting the demands of young, cost-conscious consumers.

    What changes have brands like Lloyed and Didier Dubot made?
    Retailer Lloyed has expanded its range to include “light gold” products and silver jewelry, while luxury brand Didier Dubot is offering 10k custom-made options in its couple ring line to attract younger customers.

    How is the jewelry market in South Korea evolving?
    The market is moving towards more affordable gold options, with brands creating lines that incorporate lower-karat gold and alternative materials. This shift is largely driven by price-sensitive younger consumers, leading to a redefinition of luxury in the sector.

  • Jewellers scale down to adapt as Hong Kong loses its tourist lustre

    Jewellers scale down to adapt as Hong Kong loses its tourist lustre

    After a decade of aggressive store expansion, Hong Kong’s jewellery retailers have been hardest hit by the recent downturn in tourism, with half their revenue coming from mainland shoppers.

    Jewellers have now been forced to a adopt variety of strategies to tackle the tougher market, ranging from trying to lure local customers, cutting store sizes and expanding business overseas.

    TSL, one of Hong Kong’s largest jewellery chains, is scaling back its presence in tourist districts while setting up more small shops in local malls.

    Estella Ng Yi-kum, deputy chairman and chief strategy officer at TSL, said the rent for one store in a prime area could pay for at least two stores of the same size in a residential area.

    “Moving into residential areas enables us to provide better customer service,” said Ng, adding that growth in local stores is “much more stable”.

    After the closure of its flagship Causeway Bay store earlier this year, TSL has opened three smaller stores in Temple Mall North in Wong Tai Sin, Plaza Hollywood at Diamond Hill and Olympian City in Kowloon.

    Luk Fook, the city’s second largest jeweller, is maintaining its presence in prime retail areas, in the hope that the mainland tourists will return, while cutting the size of some stores or relocating them to secondary locations.

    Earlier this year, Luk Fook closed a store on Nathan Road, which had cost HK$2 million a month to rent. Meanwhile it opened a smaller store on the same street with the rent as low as HK$400,000.

    “The turnovers were almost the same,” said Luk Fook chairman and chief executive William Wong Wai-sheung, adding the smaller store was enough to cater for the shrinking number of mainland tourists.

    Following the logic that mainlanders have to spend their money somewhere, Chow Tai Fook, the city’s largest jeweller, has moved into both the mainland and South Korea, another emerging tourist mecca.

    It recently opened a new store in Qianhai free-trade zone in Shenzhen, offering competitive prices just slightly higher than Hong Kong. The jeweller’s mainland business contributed 56 per cent of its total revenue in the six months to September 30 this year, according to company figures.

    International jewellery brands seem to be adopting the opposite strategy, switching their existing stores to prime locations, according to a retail leasing expert.

    Joe Lin, executive director of retail services at leasing firm CBRE, said many international brands had rented stores with either better quality in terms of customer traffic and visibility, or lower rents in Causeway Bay.

    “This is a great timing” said Lin, adding that more prime store locations had become available amid the retail downturn.

    This article appeared in the South China Morning Post print edition as Jewellers forced to adapt as city loses its tourist lustre