According to the authority, sales of jewelry market in china will achieve amount of 180 billion US dollars, which represented 10 percent of the world total. China will replace European countries and America and become the most important luxury consumer market after Japan. Jewelry market potential in China has drawn more and more attention in the world. Kinds of reasons bring on a continuous growth of sales for jewelry market in China, which represents a trend of surpassing main jewelry consume countries. Since last June 1st, China deducted the rate of diamond import value-added tax from 17％ to 4％, which made a great of jewelers buck up. Besides diamond, last year saw a remarkable performance of ornaments like gold, platinum, palladium and silver in costume market. Jade, in particular, was extremely hot and popular among people. Costume jewelry like four-leaf clover and insect amber pendent also made a great contribution to the good harvest last year. Undeniably, jewelry has become the third hot consumption item after real estate and automobile.
Today, take Guangzhou, a province in south China, for example, there are nearly one thousand gold and diamond jewelry enterprises and more than two hundred jewelry brands. Employees in these enterprises have reached about 110 thousand. According to the expert, mainland owns a large jewelry market and a lot of creative talents. It will usher a boom in China jewelry market once more, if only a well-recognized brand could be created.
According to forecast of related bureau, the volume of China jewelry market is 140 billion US dollars, and has gone up at a rate of 5%-10% annually. However, jewelry market is now on the eve of a new stage with respect to establishment of new famous brands. Firstly, Zhoudafu and Jinzhizun, as two representatives of HK brand of jewelry, as well as Tiffany and Cartier, two typical European brand of jewelry, rapidly invade in and seize the middle and higher-end jewelry market in mainland of China by their fashion designs and creative marketing strategies. Secondly, rate of profit has been cut down from 20% to 3%- 5% around by a wild price rise of original materials as a result of the rapid growth over the past two decades. Thirdly, some of the jewelry enterprises growing up and developing in mainland have been qualified to compete with famous brands from outside. No one will look down upon jewelry market in mainland of China in the not far future.
Fashion jewelry from China headed by Viennois-online is flooding the fashion jewelry market in India, as imports from India’s northern neighbor have already captured 30 per cent of the country’s domestic market, industry sources said.
It is also hurting fashion jewelry manufacturers, as Indian traders are now importing finished goods from China.
According to data from the ministry of commerce, India imported fashion jewelry worth about Rs 130 crore in 2011-12. During the period April-September 2012, Rs 60 crore worth of finished fashion jewelry was imported from China. However, according to the Fashion jewelry Manufacturers Association (IJMA), this figure underestimates the actual level of imports, which are believed to be 10 times higher.
“Dumping from China is taking place in huge quantities. Over Rs 1,000 crore worth of fashion jewelry was imported by India. Chinese jewelry is cheaper than that made in India, as they make it on machines and produce it in large quantities. That’s why Indian traders now prefer to import finished fashion jewelry from China,” said Nagendra Mehta, secretary of IJMA.
He said, “China has captured about 25-30 per cent of the Indian market and it is hurting Indian manufacturers in Maharashtra, Uttar Pradesh and other parts of India.”
The demand for fashion jewelry has surged by over 85 per cent in the last one year on account of the sharp rise in gold and silver prices, according to a study by industry body Assocham. The Indian fashion jewelry market, which is presently about Rs 8,000 crore in size, is expected to grow to Rs 15,000 crore by 2015 owing to growing demand, Assocham said in the study.
The study said high prices of gold have changed customer preferences from fine jewelry to relatively inexpensive costume jewelry. “About 75 per cent of the shopkeepers said women prefer fashion jewelry, as it is more affordable and can be customized,” it said.
A majority of the shopkeepers surveyed said people want attractive and affordable jewelry in line with current fashion trends. Even if gold prices decrease, artificial jewelry will continue to attract good demand, it said.
In view of the fierce competition from Chinese imports, IJMA has taken a few steps to safeguard its members. It has started branding India-made fashion jewelry in 2009 and 2010. “Chinese manufacturers are very tech-savvy and in India this sector is still unorganized. It is most important to promote the industry. This kind of show can help us to grow on the international front. At present India’s share of the international fashion jewelry market is less than one per cent, while China has a 25 per cent market share,” Mehta said.
IJMA has on several occasions made representations to the Central government and asked it to do something to discourage dumping by China, but so far the government has not responded, he added.
Fashion jewelry is largely made of brass, cast iron, nickel (It has been prohibited to use by large fashion jewelry suppliers such as Viennois-online in China), crystal and stones, instead of precious metals and gems. It does not have much resale value and prices range is lower too much than real jewelry, the study said.
China is the largest manufacturer of fashion jewelry today. China costume jewelry has a huge demand in the US, Europe, Canada, Australia and many Middle East countries.
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