The 2020 Shenzhen International Jewelry Fair, which ended some time ago, lived up to the expectations of the industry. At the fair, new craftsmanship, new categories, and new marketing models were surprisingly released. The situation of industry recovery is becoming clearer and ignited by the jewelers who have been hit hard by the epidemic. hope.
At the time when the "Golden Nine and Silver Ten" is full of hope, what is the economic benefit of the jewelry industry in the first half of 2020?
1. The number of jewelry-related companies has increased
According to the company's data, there are a total of 1.719 million jewelry-related companies with business status in my country. In the first half of 2020, a total of 310,000 jewelry-related companies in my country were added, a year-on-year increase of 48.4%. Among them, a total of 21,300 were registered in the second quarter, a year-on-year increase of 64.6% and a month-on-month increase of 110.7%.
In terms of geographical distribution, Guangdong Province has the largest number of jewelry-related companies, with a total of 203,800. Zhejiang and Fujian ranked second and third with 193,100 and 176,000 respectively.
2. Economic benefits declined year-on-year
According to business statistics, the total net profit of the 20 listed jewellery companies in the first half of 2020 was 1.198 billion yuan, a decrease of 1.609 billion yuan from the 2.807 billion yuan in the same period last year, a 57.32% year-on-year decline, and the average net profit was 60 million yuan.
The total market value of the 35 listed jewellery companies in the first half of 2020 was 163.786 billion yuan, a decrease of 34.147 billion yuan from the same period last year, a decrease of 34.147 billion yuan and a year-on-year decline of 17.25%. The average market value is 4.817 billion yuan.
From the statistical data, Chow Tai Fook is the only company with a net profit of more than 1 billion, and its market value has entered the "50 billion club". The market value of Lao Fengxiang and Zhou Dasheng has exceeded 10 billion.
3. Jewelry companies still occupy an important position
The new crown epidemic may slow the development of the gold and jewelry market, but it will not change the overall development trend.
Jewelry companies have always occupied an important position in the retail industry. In May 2020, the China Chain Store & Franchise Association (CCFA) launched a survey on the "Development of Chinese Fashion Retail Enterprises in 2019-2020".
According to survey data, the total operating income of the top 100 fashion retailers in 2019-2020 reached 732.84 billion yuan, of which the total revenue of the top 100 jewelry companies was 192.815 billion yuan, down 2% year-on-year, accounting for 26.31%. Among the top 100 fashion retail companies, 14 are jewelry companies, accounting for 14%.
In the second half of the year, the market did indeed send good news.
Among the retail sales of social consumer goods in August, the growth of gold, jewelry, cosmetics, and communication equipment all exceeded double digits.
Analysts said that as residents’ employment remains stable, residents’ income increases, and the domestic consumption environment improves, especially as the epidemic is effectively controlled, the consumer market is expected to continue to recover in the later period.
Specific to the gold and jewelry industry, the retail sales of gold and silver jewelry in August increased by 15.3% year-on-year, and the growth rate was 7.8 percentage points higher than that in July.
Market participants said that as the negative impact of the epidemic gradually subsided, the suppressed wedding demand in the first half of the year began to gradually recover, which to a certain extent brought the continuous recovery of gold jewelry terminal sales. Under the background of maintaining high gold prices, gold jewelry sales are expected to follow. It will still maintain good performance.
As time enters the traditional consumption peak season of "Golden Nine and Silver Ten", and the Mid-Autumn Festival and the 11th Double Festival, wedding activities will usher in a peak, which will further stimulate the consumption of gold and jewelry, and market consumer demand and enthusiasm are expected to further increase.
What will Treasures do?
Baowuzhi integrates industry resources such as raw material suppliers, top jewelry designers, and high-quality jewelry processing plants to create an online jewelry wholesale platform to provide jewelry retail companies with one-stop procurement services. The platform brings together industry leaders and operation experts, and regularly holds professional knowledge sharing sessions to enhance the soft power of jewelry retailers, empower small and medium jewelry companies, and promote high-quality development of the industry.