A new survey has revealed that jewellers in China are expecting a positive year for the jewellery sector and are looking to open more stores.

According to Jewellery News Asia, more than 60 per cent of large-scale retailers are operating over 500 shops in major cities across mainland China and expect sales to increase in 2005.

"With the economy continuing to improve, people's purchasing power is becoming stronger. We are confident that the demand for luxury products such as jewellery will continue to increase in the next few years," general manager of Shantou Chaohongji, Cai Zhonghua, said.

Most jewellers have been boosted by the encouraging sales growth experienced last year, with 84 per cent of retailers seeing sales increase by five per cent to 20 per cent in the second half.

Factors promoting further growth in the market include the introduction of new designs, branded jewellery, positive market sentiment, an increase in consumer purchasing power and increased marketing promotions.

Hu Xinghai from Zhejiang Sun & Moon Jewellery, which sells the Ming brand, explained: "Influenced by the image of Hong Kong retail shops, consumers in China believe that retailers that sell brand jewellery provide higher-quality jewellery and better service. Therefore they prefer buying brand jewellery rather than non-brand jewellery."

Survey figures showed that 70 per cent of retailers expect overall sales for the year to increase by one per cent to 20 per cent and many are planning aggressive promotional programmes to ensure this.

In addition, 75 per cent are looking to open new shops to take advantage of the growing market and increasing demand.