Made in Shenzhen

RAPAPORT... Shenzhen, the southern Chinese city adjacent to Hong Kong, plays a dominant role as the hub of jewelry in China. Approximately 2,100 registered jewelry companies in Shenzhen employ more than 110,000 workers and produce more than 70 percent of the jewelry products in China with a yearly production value of $8.77 billion, according to recent figures from the Shenzhen Bureau of Trade and Industry. The volume of gold, diamond and platinum processed by Shenzhen companies accounts for approximately 90 percent of the total trading volume of the Shanghai Gold and Diamond Exchanges.

Shenzhen International Jewellery Fair

The 2008 Shenzhen International Jewellery Fair, running from September 13 to 17, is the biggest and most influential jewelry trade show in Mainland China. It features more than 1,000 exhibitors from about 25 countries and approximately 2,500 booths in 565,000 square feet of exhibition area. Many exhibitors utilize this opportunity to launch their new marketing plans. Brilliant Trading Company (1974) Ltd., a Hong Kong–based diamond and jewelry group with a business scope ranging from diamond polishing to retail jewelry, launched Zuri, its new retail jewelry line, on the first day of the show.

Although it remains the country’s biggest and best, there were mixed comments for this year’s fair. The exhibitors who have been participating for several years and have offices in Shenzhen reported they had plenty of appointments with clients for viewing and picking up goods. “Both the sales for the preparation of the National Day retail season and the sales at the Shenzhen Fair were good, and our sales staff was busy,” said Wong Ning, general manager of Cheung Ning Diamond, a member of the Shanghai Diamond Exchange (SDE). “Our B2B online inventory ordering system has provided a lot of convenience and efficiency for our clients.”

However, in discussion with Rapaport News, several new diamond exhibitors complained about the lack of serious buyers due to the bad timing of the show schedule. The first three days of the five-day show clashed with the Mid-Autumn, or Moon, Festival, a long weekend holiday and a very important traditional holiday for family gatherings in China. In addition, the AsiaWorld-Expo (AWE) venue of the Hong Kong jewelry show opened on the third day of the Shenzhen Fair, so some exhibitors had to cover both shows.

Because the Shenzhen Fair was also open to the general public, it was common to see parents with infants, toddlers and children in tow. Many booth designs are very impressive, especially the retail brand names, some of which used very loud audio to attract visitors. It was also reported that fewer foreign buyers showed up this year.

Shenzhen Jewelry District Brand

The Shenzhen government and jewelry enterprises are launching a collective effort to make Shenzhen jewelry a district brand, just like Swiss watches, Parisian couture and Italian leatherwear. The initiation ceremony for the Shenzhen Jewelry District Brand was held September 13, the first day of the fair. In all, 36 Shenzhen-based brand names were selected in the first batch. It is hoped some of the brands will emulate the success of Millenium Star. First registered in 2006 in New York City, the Shenzhen-based brand received orders worth more than $5 million in less than a year, according to the Shenzhen Jewelry Trade Association. The Shenzhen district brand program is designed to improve international recognition and add value to Shenzhen products, develop tourism shopping in the city and elevate the overall competitive level for the Shenzhen jewelry industry in the global market.

The second edition of Indo-China Buyer Seller Meet, a special trade show organized by the Gem & Jewellery Export Promotion Council (GJEPC) of India in cooperation with the SDE, was held in Shenzhen from September 23 to 25. This event is designed to develop diamond trading opportunities for Indian suppliers in the biggest jewelry manufacturing, processing and trading center in Mainland China. According to Vasant Mehta, vice chairman of GJEPC, China is a diamond market with a lot of potential and the cooperation of the Indian and Chinese diamond industry to develop that potential will create a win-win situation.

Article from the Rapaport Magazine - October 2008. To subscribe click here.