Market Monitor (Cont. from page 2) Luxury Jewelry Purchase Intentions we have also endured a rise in the and Preferences Survey – China price of electricity, diesel, and other important inputs. It is not a promising scenario.” Grassroots commissioned interviews with special occasions/celebrations for 44%; Indeed, 45% of sources expect consumers in China to assess the demand investment purposes for 35%; and gifting spending on fertilizer to remain flat in for gold and gem-set jewelry and for special occasions for 32%. 2023 due to unchanged needs and purchase intentions in next 12 months. According to sources, traditional gold higher costs. One commented, “I am Intentions to purchase luxury jewelry and diamond jewelry are the top two buying the same amount of fertilizer in the next 12 months is high, with 68% preferred types to buy across various oc- per hectare. I cannot buy less because having a high desire to buy, and 26% are casions. Traditional gold is most preferred I am farming on the same extension considering buying. In addition, 72% said for investment purposes as well as a tool of land—same area, same needs, they are more interested in buying luxury to hedge against inflation, as well as for same spending per hectare.” At the jewelry now vs. the last 12 months. daily wear and non-wedding related same time, 35% expect to decrease For the 72% of sources who cited an gifting. Diamond jewelry is preferred over because of higher costs and farming increasing interest in buying luxury jewelry, gold for wedding-related occasions, both on a smaller expanse of land, and 20% anticipation of more occasions for wear for self-use and gifting. expect an increase due to soil analysis and improved personal spending power Regarding spending budgets, sources requirements and larger farming area. are the top two reasons. Meanwhile, for reported the most common luxury jewelry When asked about the use of biologi- the 6% who cited less interest, deteriorated price range for day-to-day wear, special cal fertilizers, 35% of sources already spending power and fewer occasions for occasions, and gifting is RMB 10,000– use them, either alone or combined wear were the top two reasons. RMB 20,000 [USD 1,451–USD 2,902], with conventional fertilizers. One Indeed, the major motivations for buying while the price range for investment and source said, “I’ve been experimenting luxury jewelry in next 12 months include wedding use is higher at RMB 20,000– with biological fertilizer for the past daily wear for 55% of sources; self-use for RMB 50,000 [USD 2,902–USD 7,255]. two years and have had positive results. My ultimate goal is to be completely biological.” Meanwhile, 30% of sources would prefer to wait Clear Aligners and Scanners – France for further studies, and 25% have been using it temporarily on a trial basis. To assess general trends in demand and According to sources, 60% said brand Regarding spending on efficient brand competition for clear aligners since recognition was the main decision-making agricultural farm equipment, 65% the beginning of the year, Grassroots com- argument to prescribe a clear aligner expect it to remain flat because of missioned interviews with orthodontists brand, while 20% said superior technol- political uncertainties and the risk and dentists in France. Demand for clear ogy, and 15% said price. One commented, of high borrowing rates, while 25% aligners has been trending up for 70% of “Brand recognition is the main reason expect an increase of up to 30% due to sources since the beginning of the year as for choosing to prescribe Invisalign [Align the need for improvement. One source a result of growing concern about physical Technology]. They are head and shoulders commented, “A new government is appearance, social media influence, and above the competition in the marketplace just starting. We don’t know yet what word of mouth. Meanwhile, it has been and patients know about them from their policy for our segment will be. trending flat for 25% due to economic social media and friends. When I started Our goal is to keep the renovation pressures on patients’ expenditure of prescribing clear aligners, they were the schedule, but we need to wait a while.” choice. One source commented, “Demand only product available.” In addition, another 45% of sources for clear aligners has been static overall Looking ahead, 85% of sources do not expect spending on farm equipment since the beginning of the year, because intend to change brands of clear aligners to decrease based on the political of the big jump in bills patients have to or scanners in the next 12 months, as scenario and an actual lack of need, pay, combined with some short time change is disruptive, and 10% who com- while 30% expect it to increase working. The demand is still there, but mented said they cannot change clear because of the need to renew the fleet the dramatic increase in fuel and energy aligners because of company policy. and fulfill current demand, and 25% costs and prices has inevitably obliged expect it to remain flat as they will only some patients to make choices, and [clear keep to their existing schedule aligner] treatment is expensive.” of acquisitions. 3