China's 'wedding year' promises record jewellery sales

A surge in the numbers of Chinese couples getting married this year could generate 30 to 40 per cent more sales of gold jewellery for wedding suppliers in China.

Even though gold jewellery has become more expensive for the Chinese, as prices are often dictated by weight instead of by piece, many stores are seeing an overwhelming response to wedding promotions and gold remains fashionable.

According to Chinese astrology, 2006 is the year of the dog. This is considered particularly auspicious for weddings and the month of May in particular opens the traditional wedding season.

The families of the bride and groom give presents of jewellery to the couple as part of a tea ceremony celebrating marriage. Gold rings are favourites for both sexes, with gold necklaces for brides.

Senior businesspeople predict that the Chinese market will continue to expand due to customer demand, though the competition between manufacturers will affect profit margins and cost control.

"China is one of the gold and jewellery consuming markets with the greatest potential in the world," said Wang Yao, Secretary-General of the Chinese General Chamber of Commerce.

The Secretary-General said that the market for valuable jewellery is increasing by at least 15 per cent every year.

Sales of gold jewellery in the first quarter of 2006 have already increased by over 100 per cent compared with the same period last year.