China Fashion Jewelry Online H1 2023: A Shift to Affordable

Executive Summary#

Online sales of fashion jewelry on two leading Chinese marketplaces came to CN¥ 56.4 billion in the rolling year to August 2023, and the sub-CN¥ 200 price segment took 55.7% of those sales, up 4.0 percentage points year-on-year. The shift reflects consumers moving toward affordable accessories that they can replace often. The market has been under pressure since offline shopping reopened after the pandemic and consumer confidence weakened. Design aesthetics account for 53% of purchase-driver mentions, while sizing issues account for 39% of consumer complaints, which makes fit the largest pain point that brands in the category can address.

Online Sales After the Pandemic#

Online sales of fashion jewelry more than doubled in 2020, when lockdowns moved consumer spending online, and they were still growing at more than 60% year-on-year in the first quarter of 2021. From the middle of 2021, as physical stores reopened and shoppers returned to them, the online market came under pressure, and it stayed under pressure through 2022.

There were signs of stabilisation in early 2023, when February and March grew 2.0% and 24.8% year-on-year respectively, although much of that growth came from a favourable comparison with the spring of 2022, when lockdowns disrupted sales. The market came under pressure again from May to August 2023, so we believe it is too early to call a lasting recovery.

Affordable Products Take 55.7% of Sales#

The sub-CN¥ 200 segment increased its share of sales from 51.7% to 55.7%, a gain of 4.0 percentage points that is the largest shift between price bands in the market. At the premium end, the share held by products priced above CN¥ 2,000 moved from 16.4% to 14.3%. This reflects lower discretionary spending and the consumer shift toward "small indulgences", in which shoppers replace a few large jewelry purchases with more frequent and more affordable ones.

Design Aesthetics Drive 53% of Purchase Decisions#

Design aesthetics account for 53% of all positive purchase-driver mentions, which makes visual appeal the main factor on which fashion jewelry competes. Craftsmanship comes second at 12%, followed by wearing effect at 10%. We believe this shows that consumers judge fashion jewelry mainly as a styling accessory, and much less as a durable good or an investment.

Design aesthetics account for 53% of purchase-driver mentions, 4.4 times the share for craftsmanship

*Source: Moojing Market Intelligence*

Key Takeaways#

• Online sales of fashion jewelry on two leading Chinese marketplaces came to CN¥ 56.4 billion in the rolling year to August 2023, after a period of pressure that followed the reopening of offline channels
• Sub-CN¥ 200 products increased their share to 55.7% of sales, a gain of 4.0 percentage points year-on-year, as consumers move toward affordable accessories
• Design aesthetics drive 53% of purchase decisions, which makes visual-first channels the most effective place for brands to invest
• Sizing inconsistency accounts for 39% of all consumer complaints, the largest pain point that brands can address
• Semi-precious stones grew 243.3% YoY, the fastest-growing category in the market

About the Data#

This analysis draws on Moojing Market Intelligence data covering H1 2023. Moojing analyses online transaction data from two leading Chinese marketplaces, with social media analysis drawn via MoListening from major Chinese social platforms. For full methodology and additional insights, see the complete Fashion Jewelry whitepaper.