Jewelry drives global luxury as China reshapes retail and the balance of power

The luxury industry is entering a new phase defined by three clear forces: the growing dominance of high-end jewelry, a gradual stabilization of consumption in China after years of volatility, and a profound reinvention of physical retail, now increasingly focused on experience, culture and emotional connection. Within this landscape, major international groups are recalibrating their strategies while strong local players rise with confidence and global ambition.

Jewelry as a structural engine of luxury

The latest results from Richemont confirm a trend that has been building for some time: jewelry has become the most resilient category in contemporary luxury. The group closed its third fiscal quarter with growth largely driven by its jewelry maisons, which continue to attract both established clients and new generations of high-net-worth consumers.

Unlike categories more exposed to fashion cycles or shifts in aspirational spending, jewelry combines heritage value, timeless appeal and a powerful emotional dimension. This positioning makes it a natural safe haven in periods of economic uncertainty and a highly desirable asset in markets where luxury is also viewed as legacy and long-term value.

China: from slowdown to strategic recalibration

After several quarters of contraction, the Chinese market is showing early signs of stabilization. The moderate growth reported by Richemont in the Greater China region does not point to an immediate rebound, but it does suggest a change in direction that encourages cautious optimism. Chinese consumers stay demanding, selective and increasingly sophisticated, pushing brands to rethink their offerings well beyond the product itself.

Luxury capitals like Shanghai and Beijing have become testing grounds for new commercial strategies. Here, flagship stores no longer run solely as points of sale, but as cultural immersion spaces featuring exhibitions, private events, architectural statements and explicit references to local identity.

The new retail paradigm: experience, community and storytelling

Luxury retail in China is evolving toward a place-making model, where the store becomes a destination in its own right. Brands aim to increase dwell time, interaction and conversation, particularly among younger consumers who value authenticity, content and emotional engagement.

This approach not only strengthens brand perception but also enables data collection, community building and the development of digital and social ecosystems that extend far beyond the physical space. Luxury shifts from a single deal to an ongoing relationship.

The rise of local champions

At the same time, the long-standing dominance of European maisons is being challenged by increasingly structured local competition. Chinese brands like Laopu Gold are gaining ground with propositions that blend craftsmanship, contemporary design and deeply rooted cultural symbolism.

These brands are not competing solely on price or cultural proximity, but also on prime locations, visibility in top luxury districts and compelling brand narratives. A more self-aware and culturally confident Chinese consumer sees in these labels a credible substitute to traditional Western luxury.

A global balance in transition

This dynamic is not unique to China. In the United States and other mature markets, local brands are also emerging with the ability to capture consumers seeking propositions aligned with their values, culture and lifestyle. For global luxury groups, the challenge lies in preserving heritage and global prestige while remaining locally relevant.

Looking ahead: the future of luxury

The future of the sector will be shaped by the ability to integrate product, experience and culture into a coherent and adaptable proposition. Jewelry is set to stay a central pillar of stability and wish, while China will continue to play a decisive role, not only in terms of scale but also as a source of trends that increasingly influence the global luxury agenda.

Luxury is thus moving into a more mature stage, where growth depends less on geographic expansion or price increases and more on the depth of the relationship with the client, strategic creativity and a refined understanding of diverse cultural contexts.