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Young people in China have become the main force of jewellery consumption

19 march 2018

hankang_wang_xx.jpgArmed with a Bachelor's degree from Beijing Normal University, Zhuhai, as well as majoring in Franchise Management, Wang was greatly influenced by his parents in the field of jewelry. This has resulted in his unique opinions about innovative design of jewelry products and his deep understandings of the industry’s need.

After graduating from the University, Wang worked for Dongguan Branch, China Merchants Bank for nearly 2 years and gained a comprehensive understanding of the financial industry and capital operations.

Currently, Wang serves as the President of Xintai Group, and in charge of overall company affairs since 2014.

Here, in an Interview with Rough & Polished, Hankang Wang elucidates on his company, China's jewellery market as well as the Golden Town Project.

Some excerpts:

Please walk us through the Xintai Group Co. Ltd right from inception to the present, touching upon its various activities for the benefit of our readers. Do the group companies manufacture only gold jewellery or studded jewellery as well?

Xintai Group Co., Ltd. has conducted gold and jewellery business for thirty years, that is a large group including gold, jewellery processing and sale, development of industry parks, corporate investment and financing business. The projects that developed and prepared by the company are Chongqing Golden Carnival, Jinnuo Industry Park and Golden Town. Xintai group Co., Ltd. has more than 10 gold and jewellery processing and selling enterprises, such as Jinnuo Jewellery and Meihe Jewellery, which is operating mainly gold and all kinds of jewellery.

Currently, what is the strength of the Group in terms of the number of production & marketing companies; and how do they operate on a daily basis ... as individual units or interconnected with the group?

Based on the processing production of 30 years of experience, the group deeply understood the need of industry developments and practitioners. We plan to invest 3 billion yuan (about $0.47 billion) in Golden Town. At the same time, the annual production and sales capacity of the group's jewellery factories is about 20 tons. By the development of group, it has developed into a comprehensive enterprise group integrating production, processing, sales, service and industrial park development.

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Image credit: Xintai Group

Does each of the companies manufacture specialized jewellery specific to the company? If yes, please give details?

At present, the group owns more than 10 gold and jewellery processing and selling enterprises, such as Meihe Jewellery and Jinnuo Jewellery. According to the strategic plan of the group, the subsidiary companies implement differentiated products and accurate market positioning, which creates complementary advantages between the subsidiary companies and establishes the significant status in the jewellery industry,

About the classification of the product line of the group, there are diamond, coloured gemstone, jade, 3D hard gold, pure gold and so on.

Do we see 'studded jewellery' in your Group's product line on the horizon? Does your Group cater only to the domestic market or are you into exports as well? And what about e-commerce scene... do you have a presence on the online platform?

At the moment, the group focuses on the domestic market, but it may expand to the overseas market in the future.

Our online sales platform is under construction and is expected to go online in August 2018. At that time, we will associate with the 'Golden Town' e-commerce platform to provide a broader sales platform for companies in the golden town and to provide consumers with better choices.

Is 'Golden Town' the latest project that your Group has developed? Can you give more information on this project?

The total building area of Gold Town is about 800,000 m2 created by Xintai since 2014 - the leading company with 30 years of experience in gold and jewelry industry. It is a key project supported by the government. Relying on the gold and jewelry industry of Houjie and the location advantage of Guangdong-Hong Kong-Macau Greater Bay Area, under the general trend of supply-side reform, this project is based on the transformation and upgrade of gold and jewelry industry, responds to the national strategy of constructing characteristic towns, inherits the advanced concept of characteristic town, and builds the ecological, systematic cluster of gold and jewelry industry. This project builds a full-industry chain comprehensive platform which integrates lean manufacturing, R&D, design, exhibition, trade, incubation of brand, warehouse & logistics, e-procurement, commercial recreation, culture & entertainment, and life & residence. It is the first full-ecological chain jewelry culture experiencing town in China, combining with the development concept of cultural experience, industrial tourism and characteristic town, relying on industry integration financial service and using the development mode of ‘industry + finance’.

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Image credit: Xintai Group

Is the 'Golden Town' project totally complete now; and can overseas companies buy manufacturing units in the project? If yes, please spell out the procedure.

No, the project is still under construction. At present, the number 1 and 2 buildings in the first phase of the golden town have been completed and the marketing center will open in June 2018.

According to the current policy, overseas companies can register branch company in Dongguan and purchase manufacturing units in the project.

What is the current gold & gold jewellery market situation related to demand in China right now?  Is gold jewellery looked upon as an investment even now as in the past?  Comments?

The consumption of gold and jewelry has been kept a rapid growth, especially nowadays young people have become the main force of jewellery consumption, which has higher requirements for product quality and design, even the story during the design process.

Gold has been carrying an important investment role in the past 5000-year-history of China. With the progress of the technology, gold jewellery are increasingly popular with young people. Looking all over the world, Gold has an irreplaceable function of investment and value preservation as the form of storing currency. With the increasing instability of the world economy, the monetary property of gold is becoming more and more prominent, and will still be regarded as a reliable way of investment. According to the news of ORNAWORLD on February 7, 2017, China's gold consumption has kept the first place in the world for 5 years, with an increase of 9.41% over the same period. There is a large number of data from official websites supporting this report, such as the World Gold Council, Gems & Jewelry Trade Association of China and the China Gold Association.

It is said that other luxury products/experiences like fancy overseas travel, high-end cars/ artwork, etc., are of more interest to Chinese millennials of late, thereby hitting negatively on gold/gold jewellery sales in the country? Your thoughts...

The domestic market of gold consumption has been maintaining the growing trend over years, but the standard for gold products is higher than before because the millennial generation has become the main consumer. For our manufacturers, no matter from the quality, design or development, the connotation and insight are all different, which creates opportunities and challenges meanwhile. Gold jewellery is also one of the most luxury goods, with higher circulation and investment value. After fashion design gradually becomes the main consumption and investment in 80s and 90s, the currency function of gold is more obvious. Moreover, because of a more comprehensive concept of investment of new generation and the increasingly fashionable design, it will much easier to attract young consumers, which effectively benefits to the gold sales.

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished

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