A Decade of Explosive Growth—and a Turning Point
Over the past decade, the luxury sector in China has experienced unprecedented growth. As the consumption structure evolves, a rising consumer focus on cultural identity, emotional resonance, and lifestyle alignment is repositioning jewelry and watches as strategic pillars for long-term brand development. For international brands, this shift goes beyond distribution. It is no longer enough to just “show up” in China—it is about embedding ethos, building cultural affinity, and securing enduring consumer mindshare.
The message is clear: China is not a playground for copy-pasted Western playbooks. Brands must evolve—or get left behind.
Localisation and the Pursuit of Sustainable Growth
Increasingly, global brands are rejecting cookie-cutter strategies, leaning into localisation, digitalisation, and youth engagement. These efforts reflect a broader ambition for high-quality, sustainable growth. But let’s be honest—many campaigns are still surface-level. TikTok activations and celebrity drops do not equal cultural depth. The Chinese luxury buyer demands authenticity, not just spectacle.
Hard Luxury vs Soft Luxury
Watches and jewelry—known in the trade as hard luxury—stand apart from soft luxury like fashion and leather goods. Their distinction lies in intricate craftsmanship, enduring value, and supply chain complexity. Hard luxury is not just about status. It carries cultural significance and long-term investment value.
This is why sustainable gemstones and transparent sourcing models are so critical. Unlike handbags, where resale and trend cycles drive turnover, jewelry must prove its legitimacy through heritage, provenance, and craftsmanship.
The Supply Chain Pressure Cooker
Underlying both sectors is a highly specialised supply chain. From mining, cutting, and polishing natural diamonds, to sourcing components for mechanical movements, hard luxury manufacturing depends on artisans whose expertise cannot be replaced by AI. In watchmaking, master craftspeople still assemble and calibrate each timepiece by hand. That human touch drives costs—but also ensures competitive differentiation. lab-grown diamonds and lab-grown gemstones may reshape expectations here, but heritage brands are reluctant to admit just how disruptive they could become.
Diverging Market Trends: Jewelry’s Rise, Watches’ Correction
Recent data reveals divergence. Jewelry continues to post resilient growth, supported by a diverse consumer base. Demand for colored gemstones and bespoke pieces remains strong, with high-net-worth individuals snapping up Colombian emeralds and Kashmir sapphires. Brands are responding with elevated customisation services, selling exclusivity as a currency.
Watches, however, are in correction. China—once the engine of growth—now faces slower recovery and lingering caution. Pandemic lockdowns pushed watchmakers into digital transformation, but speculative price surges around iconic models peaked in 2021 and have since declined. The affluent are suddenly more conservative, treating watches less as speculative assets and more as cautious investments.
Trade Tensions and Cost Inflation
Cross-border dependencies on raw materials and mechanical parts create fragility. Shifts in trade rates could inflate production costs, delay delivery, and disrupt pricing strategies. Consumers may demand stability; instead, they’ll likely face volatility.
China Hard Luxury Report: Insight or Warning?
The new China Hard Luxury Trends Report, released by Vogue Business and Tmall Luxury Pavilion, underlines this reality. “China is no longer a market that simply wants to be seen, but one that demands to be understood,” says Anny Liu, Tmall Luxury Pavilion’s general manager.
This isn’t just marketing spin—it’s a warning. Treat Chinese consumers as passive recipients of luxury spectacle, and your brand will fail.
The Digital Backbone of Luxury’s Future
Looking forward, Tmall Luxury Pavilion is positioning itself as the digital operations backbone for luxury brands in China. From AI-powered content marketing and omnichannel CRM, to livestream engagement and customisation, it promises an agile ecosystem for luxury players. Armed with vast consumer data and research on affluent shoppers, it outlines the forces shaping the next chapter of hard luxury.
But here’s the reality check: tech can help deliver, but it cannot replace credibility. Without ethical jewelry, sustainable gemstones, and transparent certification through bodies like GIA, digital strategy is lipstick on a diamond.