Are you aware of the fact that jewelry is another alternative to bank savings?
China knows it.
She’s currently the second largest jewelry consumer in the world. China is clever. China is a risk taker. China wins.
All jokes aside, I have been undergoing some very thorough detective work. Sometimes I like to get in the role and pretend like I am a market research analyst by day and a detective by night. Today’s comprehensive report is on China’s jewelry market.
If you liked this, you may also want to know more about cubic zirconia rings!
Check out Marketing2China Blog for opportunities in China’s jewelry market.
It is also fitting to mention in the beginning that China has always had a well-established history in the gems and jewelry sector (at least 3000 years). The following data should surprise you anyway.
Being one of the largest jewelry consumer countries in the world is high profile. China’s economy has shown groundbreaking growth and resilience in the span of the past 30 years. Professional analysts (such as myself) predict that it will slow over the next few years but eventually overtake the US within a decade.
The term economic growth comes with a set of implications, one of them being higher average income for the citizens. Higher average income implies a change in lifestyle (large numbers of Chinese citizens are expected to migrate to other, less developed cities). As income increases (and this applies to a certain tier of cities), so does the consumption of goods. If you’re still following me, then you will understand why jewelry is and will continue to be in high demand. Luxury goods are where you look after you have everything you need and more.
Let’s look at some complex line graph to illustrate this idea.
Moving away from macroeconomics, China is quickly developing and diversifying its domestic jewelry market. As if being a global manufacturing leader is not enough!
Here is another fact for you. China (including Hong Kong and Macau), is the world’s second-biggest consumer of luxury goods. The most literally purchase half of ALL luxury goods in Asia and 1/3 of those in Europe. I’m sorry, has your data analysis shown you that the US rising rate of luxury goods purchases is rising at a competitive speed? That’s the Chinese tourists visiting your foreign land for casual purchases.
This bar graph is slightly outdated but nevertheless illustrates my point.
Wealthy Chinese consumers have a taste. They’re sophisticated in their shopping habits. It’s no longer about owning famous brands; it’s about quality, a unique look, value, design (most importantly, I would say).
Oh, China also happens to be the largest producer of jewelry.
On top of this, China’s business owners (that invest in jewelry as well) have a particular advantage in terms of lower labor costs, latest technology, and an advanced and thriving manufactury industry. It is no wonder their jewelry consumption (per capita) is rising at a dramatic rate over the past few years.
Most of the jewelry manufacturing process takes place in Guangdong province. Shenzhen is the other primary location (the jewelry market output there is nothing special, just $8 billion). China is a world renounced for cheap labor, but not in this sector. They’re moving away from the low-cost manufacturing model and transitioning to a much more sustainable and efficient one; highly skilled workforce, latest technology (laser sawing gems), CAD (computer-aided design), robots (I mean robotic cutting) for colored stones, etc. You get the idea. This is where you would invest if you wanted to rule the world.
Below is a list of the most popular items, not listed by ratings or any particular data.
1. Diamond jewelry
China has the second largest diamond market (after the US). Diamond jewelry has become not just popular and fashionable; it dominates the industry and is expanding at light speed. In particular, the bridal market is enjoying the spotlight.
We all know what diamonds look like, so let’s look at some data instead!
2. Colored gemstones
It is only recently that China’s consumers have ventured into the colored gemstones sector. The most popular choices remain ruby, rubellite, tourmaline, tanzanite, jadeite.
Jade deserves its own section! I have no data for this one, but I’m sure it will say “China is the largest consumer and producer of…”.
4. Gold jewelry
Yes, here too, China is the world’s fastest-growing market for gold jewelry. In fact, 2/3 of Chinese women consider gold jewelry an investment rather than bling.
This bar graph too is slightly outdated but take a look at the numbers.
5. Platinum jewelry
Another first! China is the world’s leading consumer of platinum. It’s become a trend to purchase platinum and gemstone jewelry, especially in the bridal market sector.
6. Silver Jewelry
Are you getting sick of how big a leader China is? China is also the largest jewelry manufacturer.
You guessed right; China is the world’s largest cultural pearl producer.
Some may wonder, ‘what is this Western fascination with China?’. It’s the land of opportunities, that’s all. They must be doing something right.
What can I say? Businesses are investing in all the right places; consumers are purchasing all the right goods. They’re a well-oiled machine.