In recent 40 years from Reform and Opening-up Policy, China's supply-demand structure and market situation has a fundamental change, in which a new diversified consumption pattern multi-choice and multi-level is forming. With stable growth of per capita income and a rapid emerging of "Millennial Generation", rural and urban residents are transforming the previous large-scale, homogenized and popularized consumption to a new diversified consumption with differentiation and high-quality.
Especially since 2016, China's gold and jewelry industry has been transformed structurally, featuring in following specific performances: By a fusion and application of "Internet +" and high-tech, an active innovation on production and business operation mode is executed, and a remarkable success is achieved in respects of Intelligent manufacturing, creative design, personal customization and integrated both online and offline marketing; brand concentration further improves, and an oligarch situation on distribution channels is forming; M&A in capital market focuses more on assets with high quality, international brands and the strategic layout of overall industry chain; the research and development on new technology and materials achieve continuous breakthroughs and many innovative products are constantly emerging, such as 3D printing jewelry, 3D hard-gold jewelry, wearable smart jewelry fused with digital technology as well as innovative jewelry integrated with traditional and new materials; new consumption type that focuses on creation of style design and pursues high quality, casual luxury, high frequency is forming.
With the implementation of a series of new economic policies, such as the Supply-side Structural Reform of Chinese government, the growth pattern of China's economy is changing from speed-oriented growth to qualitative-oriented growth. The conversion of old and new impetus energies has shown real effect -- in recent two years, the impetus layout of China's economic growth has gradually given its priority from previous investment and export driving to consumption driving.
In recent, Li Keqiang, Premier of the State Council pointed out in the Government Work Report made at the First Meeting of the Thirteenth National People's Congress that, in recent five years, China, with a resident income growth at an average annual rate of 7.4%, exceeding the economic growth, has formed a middle-income group with the world's largest population. According to the standard of the World Bank, the conservative estimation shows that currently China's middle-income group has a population of more than 400 million, accounting for about over 30% of that in the world, with a rapid growing size. It is estimated that by 2030, the population of China's middle-income group will account for about 60% of the total. As shown in National Bureau of Statistics data, in 2017, Chinese residents' final consumer expenditure annually has 58.8% contribution rate of GDP growth.
It is certain that China, with the world's largest middle-income group, has a huge consumption market which is full of vitality remaining a strong expansion capacity for a longer period in the future, so as to allow China's economy also to keep a strong tenacity to resist the impact of changes in the external environment.
As the middle-income group gets larger, the consumption upgrading of China's market is producing a profound effect on all kinds of traditional industries including gold and jewelry. From cultural inheritance and capital M&A to talent cultivation and brand building; From product innovation, respecting design, encouraging originals to protecting intellectual property rights, revitalizing traditional handicraft and craftsman culture... At present, China's gold and jewelry industry is discarding its previously extensive-style theories of fickleness and quick money at all levels and returns to the pursuit of product quality, art taste and brand style from previously simple pursuit of scale output and market shares.
Based on a general confident and optimistic estimation towards our nation's future, new consumption revolution in China has sounded the horn. Obviously, in this wave of consumption, China's market has become more open, which possesses more attractions to gold and jewelry industry both at home and abroad.
At the opening of the Watch and Jewellery Show (Basel Watch Fair), the English version of China Market Report 2018 launched to face participants in international gold and diamond industry is designed to providing an objective and detailed reference guide for international participants to have an insight into the development and changes of China's gold and jewelry consumption market as well as the growing trend of this industry. At the same time, it also offers opportunities to enter into China's booming market and enhance the communication and cooperation between Chinese and foreign enterprises.
As the one and only national-level authoritative media organization and think tank for professional research in China's gold and jewelry industry, China Gold News (Beijing Gold Economic Research Center) has been concentrating on a sustainable and deep date collection and research for China's gold and jewelry consumption market for years, as well as carried out special surveys and launched research reports regarding to transformation and upgrading of the industry or significant topics related. We have published and released annual report on China's Gold and Jewelry Consumption White Paper for years in succession, which has been an important reference for participants in this industry to grasp market change and adjust strategy or methods.
The main content and its viewpoints of China Market Report 2018 is formed on a basis of the integration, reframing, re-analysis and research of Research Report on China's Gold and Jewelry Consumption Upgrading 2017, White Papers of China's Gold and Jewelry Consumption Survey 2018 and relative research results (China Gold Press and Beijing Gold Economic Research Center are eligible for copyright of relevant works above). Taking the "consumption upgrading" as a core goal, it carries out the analysis and study on two levels of industry and consumption market, strives to reveal the development and changes of China's gold and jewelry market in recent two years in a full view with objective and detailed data.