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author | tang fei

editor | li xiaotian

"modern economists since john maynard keynes have wanted to show that buying gold is irrational and have called for the abolition of the 'barbaric relic' of the gold standard, but this has had a negative impact on global demand for gold. it has no impact. as long as people still believe in the value of gold, then the political, economic and social role of gold will not change. from a cultural perspective, this belief has taken root everywhere.”

in his book "gold: a brief history of the world of power and wealth", bird stephen gray, a history professor at the university of tübingen in germany, takes the history of gold as the main line and reviews the process of mankind's fanatical pursuit of gold.

this fanatical belief also drives gold jewelry, an industry with a history of hundreds of years, which is still growing rapidly in modern society. a report released by technavio predicts that the global gold jewelry market will have a compound annual growth rate of 19.98% from 2024 to 2028, and the market size is expected to grow by us$58.4 billion in the next five years.

among the countries with the largest consumption demand for gold jewelry, china and india rank at the top, especially the demand for gold jewelry, ranking first and second in the world respectively.

in addition to china and india, gold consumption habits in other southeast asian countries are also particularly prominent. taking thailand as an example, the overall gold demand of thai consumers in h1 2024 increased by 20% year-on-year, reaching 9 tons. this growth rate directly pushed thailand to the throne of the country with the fastest growing gold demand in southeast asia in the first half of the year. according to cctv financial report, in july, the "gold rush" in many places in vietnam became more and more intense, and many people lined up outside banks to buy gold. due to the excessive number of buyers, the supply of gold exceeded demand, and many banks were forced to introduce purchase restrictions.

facing the huge demand from global consumers, many chinese gold and jewelry brands have begun to expand their stores overseas.

in kuala lumpur, the capital of malaysia, in pavilion kl, the most prestigious shopping mall in the area, we can see a number of chinese brands such as miniso, bubble mart, yang guofu, mixue ice city, etc., and on the second floor of the shopping mall, there are a gold store from china - lukfook jewelry.

earlier, in april this year, the lukfook joaillerie at trx tun razak trade center in kuala lumpur and the new lukfook jewelry branch at pavilion plaza damansara highlands opened one after another. the latest news shows that in addition to malaysia, lukfook group also has 18 stores overseas and plans to open a net increase of 15 stores overseas this year.

coincidentally, in addition to lukfook group, many well-known domestic chain gold and jewelry brands are also actively expanding overseas business.

according to the news on september 12, the investor relations activity record form disclosed by chao acer shows that the company’s first overseas jewelry store opened in ioi city mall, the largest shopping mall in kuala lumpur, malaysia. sales momentum has been good since the opening.

earlier, lao fengxiang disclosed that by the end of 2023, 16 stores had been opened overseas; chow tai fook also has 32 stores overseas. in september this year, the former general manager of southeast asia and oceania of luxury brand loewe was just appointed as the new international general manager, highlighting the determination to further expand overseas; laopu gold’s announcement mentioned that it will expand 5 new stores in southeast asia within two years after listing.

in addition to offline, online has also become an important channel for gold to go overseas.

in 2023, the growth rate of jewelry in tiktok live e-commerce will be 27.3%, exceeding most other product categories. the gold jewelry live-streaming market in thailand and vietnam is particularly booming, and there are many cases where the gmv of a single live broadcast exceeds one million us dollars.

for example, xuping jewelry once ranked first in southeast asia in the tiktok jewelry live broadcast track. later, with the help of e-commerce, it was sold in more than 100 countries and regions.

chow tai sang has also expanded its online business through tiktok, shopee and other platforms to accelerate its internationalization process. the recruitment information released by the company on september 12 shows that it is looking for a thai tiktok anchor with a high salary to be responsible for the live broadcast of the company’s jewelry products on the overseas tiktok platform, explaining the characteristics of the products, interacting with fans, and guiding sales, etc.

at the same time, just like products with corresponding themes for different festivals are launched in the domestic market, chow taisheng also uses foreign festivals or special events on the tiktok platform to launch relevant festival-limited jewelry to increase the attractiveness and topicality of the products.

some analysts predict that by 2025, about 18% of jewelry sales will be completed online, especially in the asian market, and the share of the online jewelry market is expected to double from 6% to 12%.

more macro-level data shows that my country’s jewelry industry’s total import and export volume will reach us$145.334 billion in 2023, a year-on-year increase of 8.62%. among them, the total export volume of gold jewelry and products was 262.76 tons, with a year-on-year growth rate of 15.26%.

when gold jewelry goes overseas, chinese brands have their own unique advantages.

first of all, chinese companies have unique technical advantages. large domestic gold brand companies can improve the purity of gold to a higher level. for example, the gold content of common k gold products can stably meet or even exceed national standards. in overseas markets, gold products of different purity can meet the needs of different groups of people.

for example, in south korea, 14k gold is very popular due to its good hardness, affordable price, beautiful appearance and economical application. the 583 gold jewelry that russian consumers like to wear the most is actually equivalent to domestic 14k gold. in the japanese market, the common gold jewelry is mainly 10k gold. compared with 18k and 24k, the price of 10k is much lower, which is more in line with japanese consumption concepts. at the same time, 10k gold has better hardness and ductility, and is less prone to wear or deformation when worn daily.

secondly, the accumulation of thousands of years of gold production technology has given chinese brands leading global capabilities in gold jewelry processing. such as traditional filigree craftsmanship, engraving craftsmanship, etc., can produce exquisite gold jewelry. in addition to traditional craftsmanship, chinese gold brands also continue to explore and innovate, combining modern technology with traditional craftsmanship. for example, 3d printing technology is used to make models of gold jewelry, and then combined with traditional manual processes for fine processing, which not only improves production efficiency, but also ensures the quality and uniqueness of the product.

at the same time, chinese gold brands also have strong technical advantages in personalized customization. they can design and produce unique gold products according to consumer needs, which greatly improves consumer satisfaction.

finally, chinese designers are also unique in their design capabilities and are good at integrating traditional chinese cultural elements with modern fashion elements to create gold products with unique cultural connotations. for example, gold jewelry with the theme of chinese zodiac animals, traditional festivals, auspicious patterns, etc. not only embodies the charm of chinese culture, but also meets the aesthetic needs of modern consumers. in overseas markets, this kind of product with "national trend" design charm can attract the attention of many consumers. at the same time, co-branding with major brands and ips is also a familiar operation for domestic companies. these co-branded products can not only drive sales growth but also bring higher premium space. for example, lukfook jewelery's rilakkuma collection products have caused queues to buy in kuala lumpur.

legend: lukfook jewelry rilakkuma series

"from a global perspective, china's gold market has transformed from a follower to a leader, demonstrating leadership in key areas of the gold industry and will continue to promote the innovative development of the international gold market." said teda wei, ceo of the world gold council.

since the beginning of this year, global gold prices have been rising.

looking at futures prices, the closing price of comex gold futures on january 26 was us$2,089.1 per ounce, and by september 26, the closing price had reached us$2,681.3 per ounce, a nine-month increase of more than 28%.

on the other hand, the decline in currency exchange rates in some countries has attracted many consumers to travel, so "gold hunting" overseas has become a hot topic on social media.

for example, in neighboring japan, the continued depreciation of the yen has directly detonated the japanese tourism market. many foreign tourists not only come to japan to visit, but also take the opportunity to buy gold, jewelry, luxury goods, etc. in japan.

cctv finance reported that in a jewelry store with a history of nearly 80 years in ginza, tokyo, the number of foreign customers visiting the store has increased significantly this year. the person in charge of the store revealed that compared with the same period last year, the number of foreign customers has doubled and sales have tripled. these foreign tourists are mainly attracted by the high gold prices, and they are more inclined to buy gold jewelry. under the premise of general industry growth, both japanese local brands and other international brands have received a large wave of orders.

but in thailand, also a popular tourist destination, the situation is exactly the opposite.

in chinatown in bangkok, thailand, there are more than 100 large and small gold stores, most of which are run by chinese. shop owner kingway shared that the so-called "pure gold" in thailand is actually 96.5% gold purity, which cannot reach the domestic level of 99 or even 99.99.

in addition, kingway also mentioned that gold sold in thailand is measured in "baht", which is quite different from the "gram" commonly used in china, and the "baht" of gold bars and the "baht" of gold jewelry are converted into "grams". not exactly the same. a faster method is to divide the price on the price list by 76, which is roughly the price of one gram in rmb.

“generally speaking, the average price per gram is not cheap,” kingway said. therefore, even though chinatown has a huge flow of people and a natural language advantage, there are not many chinese tourists who actually buy gold in large quantities, and most of the products are still bought by locals.

a similar situation also occurs in malaysia. xinmei, who runs a gold store in malaysia, said, "the price of gold has skyrocketed in the past year, and the store's monthly turnover has reached more than 5 million ringgit (about 8.5 million yuan). however, because of the design, style and purity the problem is, almost all of my customers are local consumers, and few foreign tourists actually pay."

in xinmei’s view, there are many reasons why malaysians like gold. first of all, because the main religion in malaysia is islam, in islamic culture, gold is regarded as a pure and noble metal. during important religious festivals and ceremonies, muslims often give gold jewelry as gifts to express their blessings and care for their relatives and friends. at the same time, the traditional custom of wearing gold has continued for hundreds of years and has become a part of malaysian culture. for example, in traditional malaysian weddings, gold jewelry is an essential part. the bride usually wears a large amount of gold jewelry, such as necklaces, bracelets, earrings, etc., to show the wealth and status of the family.

secondly, gold has the function of maintaining and increasing value. the entire southeast asia region is currently experiencing inflation and when the economic environment is unstable, people often choose to buy gold to preserve their wealth. for example, during the southeast asian financial crisis in 1997, the malaysian ringgit depreciated sharply, and people's confidence in the local currency was frustrated. many malaysians chose to invest their funds in the gold market to protect their assets.

finally, at the end of last year, malaysia’s gold reserves were us$2.8 billion. by august 1 this year, the country’s gold reserves had grown to us$2.9 billion, an increase of us$100 million in less than a year. actions at the national level will also affect everyone to a certain extent. coupled with the downturn in the stock market and real estate market, investment channels are limited. funds originally invested in the stock market and real estate need to find new investment channels, and gold, as a traditional investment product, has become one of the important choices for investors at this time.

the combination of the above reasons may also be the reason why brands such as luk fook group and chao acer choose to concentrate their presence in malaysia.

zooming in, you can see that all of southeast asia has a unique love for gold. thais like to buy gold, partly because gold jewelry and gold decorations are widely used in many traditional festivals and celebrations, such as weddings and temple sacrifices. in hinduism, gold is considered the incarnation of the god of wealth, so in indian society, owning gold is seen as a source of security and a sense of accomplishment. similarly, gold also has a symbolic meaning in vietnamese society. the more gold jewelry a person has on his body, the higher his status and wealth. gold jewelry is indispensable on many important occasions such as weddings, birthdays and festivals to show the family's glory and social status.

therefore, looking at the current overseas gold jewelry brands, they still mainly focus on southeast asia.

however, in addition to the advantages mentioned above, gold stores also face certain pressures when going overseas. first, each country has its own local gold brands, as well as some private gold stores. coupled with the competition from internationally renowned jewelry brands such as tiffany and bulgari, gold jewelry chain brands will inevitably face challenges from various markets when entering these markets. fierce competition among brands. second, as gold is a special commodity, various countries have strict controls on its import and export. some countries may set up high tariffs, complex trade procedures and other trade barriers to restrict the import of gold jewelry. this not only increases the cost for chinese gold brands to enter overseas markets, but may also lead to untimely supply of products and affect the normal operation of the brand.

gold, since its debut, has long been known as the "king of metals" because of its rarity, stability, beauty and preciousness.

at the end of "gold: a brief history of the world of power and wealth", the author proposes that fundamentally speaking, as long as people trust its value, then gold can maintain its material value for a long time, and the legend of gold will continue to be written.

at the same time, chinese brands have gradually become an important force in the global jewelry and luxury goods industry. according to the "global power of luxury goods 2021" released by deloitte, chow tai fook ranked tenth with sales of us$7.196 billion. in the international jewelry luxury goods market where european brands hold a strong position, the rise of china has also conveyed more oriental cultural and aesthetic concepts, affecting the global fashion industry.