Advantage and Challenge of Chinese Jewelry Exporting

2009, “Chinese style” seems to be the dark horse in the internal jewelry industry; “China elements” is the favorite of internal jewelry designer. But nowadays, “China style” is also to be the dark horse on the overseas jewelry stage. Lots of worlds’ top jewelry brands have pushed out products that contain "China elements" to express lovely wishes & respect to China. These actions also show determination that they need to enter the China market. Face to the great pressure from foreign competition, they must clearly understand our advantage & hidden danger, only realize the situation they could promote the jewelry industry developed by leaps & bounds. This article will analyze the three facets

1. Advantage of Chinese Jewelry Exporting

(1). Industrial cluster effect beginning to show. After reform & opening up for 20 years, China's jewelry industry has been great development for the condition of market economy, making use of the advantages of geographical traditional culture, human resources, policyowner, etc. Now it's formed of a characteristics group of jewelry industrial base. The group contained Shenzhen, Panyu , Dongguan, Wuzhou, Changle, Zhenping, Zhuji, & so on. The city of Wuhan is also building the Chinese jewelry Expo base. (2). The jewelry export is going on increasing. For example of pearl & silver, the export tax rebate of pearl & silver declined from13% to 5% in 2007. Pearl’s export priced is 0.2645 dollars / g, higher than 2006's 0.2516 dollars / g, unit prices increased by 5.13 percent. It shows the quality of Chinese pearl is rising by step, & begins shaking off the picture that occupancy the market ray on the low price. (3). Our jewelry processing industry including diamonds inlaid has a high level & ability. According to the statistics, 100% of the Hong Kong inlaid jewelry is processed in mainland. There is over 200 processing plants processes jewelry for abroad for years; the annual value is over 30 billion dollars. In addition£¬there are available over 300 processing plants with the capacity of foreign trade processing. They can say that China has the capacity & infrastructure to be the center of world’s jewelry processing. (4). China is not only the huge country for the consuming of diamond, but also is the world's most important centre of diamond processing. The Chinese processing level of diamond has been approbated & praised by the international same trade or occupation In the eyes of businesses & consumers, “Chinese workers” is the

Synonymous words of "good work" & "excellent work". Therefore, China's processing of diamonds has strong competitiveness in the world’s market. At present, China's capacity of diamonds processing is about 3 million karats annual, the amount of Practitioners is about 18,000.(5). China has unique stone caving & jading caving with rich cultural traditions. Jade produced in Myanmar, but the market is in China. In the side of Quantity, China's mainland undertake 80 percent of the raw materials processing & sales. In the other side of quality, since the Asian financial crisis, China has become the main markets of high-grade jade gradually.

2. Hidden danger of Chinese Jewelry Exporting (1). High volume & low worth is the bottleneck to restrict the development of jewelry industry. Nowadays, China has the international leading level of diamond cutting, mosaics, design & so on. However, gold, peals, imitation jewelry etc still has an industrial structure of high volume & low value. Gold processing fees is only 1 to 2 Yuan/g; inlaid jewelry is generally 30 to 50 Yuan each except the high-end level. To pearl jewelry as an example, China's annual output of pearl is up to 1,500 tons, accounting for 95 percent of the world’s, but the output value is only 15 per-cent of the world's total, the export earnings is not match with the output ratio. (2). The deficiency of jewelry brand is the current common problem in the industry. As the output continued to expand, the enterprises generally lack of brand awareness. Simultaneously, lots of international brands accelerate the pace of landing the mainland of China in recent years. It is bound to accelerate the re-shuffling of domestic jewelry industry, some local brands will face the fate of phasing out. (3). The intellectual property rights of Chinese wholesale jewelry

processing industry is increasingly concerned by international manufacturers. In the Basel jewelry exhibition 2005, an international jewelry manufacturer brought forward about 20 reports of suspected plagiarism which products are from China. Due to apply an intellectual property for a design is need 6-8 months in the country, but the popular time for jewelry is shorter than registration time, this policy owner restrained the popularity of the registration of intellectual property rights in the industry to some extent. (4). Chinese fashion jewelry also has the pressure of safety & quality. Revealed by Guangdong customs, The Greek has two times noticed the EU that the nickel emissions of some earrings from China is out of gauge, they need to ban the sale of related products. So the European Commission issued a consumer warning for the products

in the area of EU. China's mainland has become the world's second largest base of jewelry manufacturing, & will be the largest five in 5 to10 years. It will also become the world's largest jewelry consumer market in 10 to 15 years. There is no doubt that China has a bright future. But face to the strong competition pressure, they still have lots of insufficiencies, only ray on the tangible hard work, they can realize the success.(Article resource: http://www.dushangjewelry.com/ )