Sri Lanka gems captivate Chinese consumer market

The Sri Lanka Embassy in Beijing with the National Gem and Jewellery Authority and the Gem and Jewellery Association organized a Sri Lanka Pavilion at the International Gem and Jewellery Fair 2009 from November 5 to 9 at the China International Exhibition Centre in Beijing.

With the participation of eighteen (18) companies, Sri Lanka made its biggest presence ever in the Beijing Jewellery Fair, showcasing an eye-catching array of gems and jewellery in the ‘Sri Lanka Pavilion’.

The Sri Lanka Embassy initiated a closer co-operative partnership with the China Gem and Jewellery Trade Association having a membership of over 1800 leading gem and jewellery companies, which had paved the way for Sri Lanka to carve out a niche in the Chinese market. During the past 30 years with reforms and opening-up of the economy, the gems and jewellery industry in China has grown from a non-existent base to emerge as a new industry with dynamism and high development prospects.

The Chinese mainland jewellery market is supposed to be yielding the greatest potentialities in the world.

In 2008, the total consumption of the Chinese jewellery industry reached over US $ 25 billion and exports exceeded US $ nine billion. The labour in the industry surpassed three million and accounted for over 50,000 registered jewellery companies. China ranks top in the consumptions of platinum, gold, diamond, jade, jadeite and rock crystal jewellery products.

The Ministry of Commerce of the People’s Republic of China estimates that by 2015, China’s luxury consumption will have increased to account for 23 percent of the global total and China will have become the world’s biggest market for luxury products.

China will replace European countries and America and become the most important luxury consumer market after Japan. With these statistics the jewellery market potential in China has drawn more and more attention in the world.

Since June 1, 2009, China deducted the rate of diamond import value-added tax from 17 percent to 4 percent, which significantly boosted the existing consumption patterns. Besides diamonds, 2008 saw a remarkable performance of ornate products like gold, platinum, palladium and silver in the consumer market. Jade, in particular, was extremely popular among the people. Undeniably, jewellery has become the third most sought after consumption item after real estate and automobiles.