BEIJING (Commodity Online): China, which is a competitive jewellery manufacturer and consumer, will gain a higher growth of sales in jewellery market in 2010.

Sales of jewellery in China will achieve $180 billion, 10 per cent of the world total. China is set to replace European countries and America and become the most important luxury consumer market after Japan.

Jewellery market potential in China has drawn more and more attention in the world. Kinds of reasons bring on a continuous growth of sales for jewellery market in China, which represents a trend of surpassing main jewellery consuming countries. Since last June, China deducted the rate of diamond import value-added tax from 17% to 4%, which made big jewellers buck up.

Besides diamond, last year saw a remarkable performance of ornaments like gold, platinum, Palladium and Silver in consume market. Jade, in particular, was extremely hot and popular among people. Costume jewellery like  four-leaf clover and insect amber pendent also made a great contribution to the good harvest last year. Undeniably, jewellery has become the third hot consumption item after real estate and automobile.

Despite of a big sale, it is very difficult to build up a well-recognized brand of jewellery in mainland of China. Take Shenzhen, a city 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. However, few famous brands are created. Most consumers are very familiar to HK brands of jewelry, such as Zhoudafu, Zhoushengsheng, Xieruilin and so on. Although they are much more expensive, people would rather to buy them than local brands of jewelry. 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. It has been a bottleneck for a great deal of small and medium-sized jewelry enterprises in mainland and threatens the survival and development of the enterprises that cannot break out.

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.
(Courtesy: PR-Inside.com)

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