RAPAPORT... In China, diamond purchases are connected to personal events, mostly weddings. Many young couples schedule their weddings during one of the three Golden Week holidays — Chinese New Year, usually in February, Labor Day, in May, and National Day, in October. The Chinese government established the Golden Week holiday schedule to stimulate the retail and tourism markets. Sales during the three weeklong holidays are considered vital to most retailers and wholesalers.
In 2008, the holiday schedule was curtailed somewhat when the government reduced the Labor Day holiday to three days total, while keeping the Chinese New Year and National Day holiday schedule intact.
The wholesale diamond market was busy in the first half of April fulfilling orders in preparation for the Labor Day holiday May 1 through 3. In discussions with RDR, most manufacturers and dealers said they were satisfied with their wholesale sales, with a good number of them reporting slight increases from 2007, and they were optimistic about Labor Day retail sales. The prevailing prediction was that the Labor Day retail totals were going to be good.
“The adjustment in the Labor Day holiday schedule this year hasn’t affected our wholesale business,” said Echo Yu, marketing manager of Eurostar Diamond Shanghai Traders. “We believe the retailers are optimistic and preparing a lot of inventory, because retail sales during Chinese New Year were satisfactory. Our market share has grown this year, and so have our sales.”
2009 ICA Congress Set for PanyuThe International Colored Gemstone Association (ICA) announced during an annual ICA dinner at the BaselWorld show that the next ICA Congress will be held from May 5 through 9, 2009, in Panyu, a district within the city of Guangzhou in Southern China. According to an ICA press release, more than 1,000 delegates, including approximately 600 international participants, with the rest from Hong Kong and Mainland China, are expected to attend the gathering, which will be the largest jewelry-industry conference ever held in China.
During the ICA dinner, representatives of the Panyu branch of the China Council for the Promotion of International Trade (CCPIT) made a presentation to ICA members on business opportunities in Panyu. In recent years, the district has emerged as the largest export-oriented production base in China, with nearly 400 businesses manufacturing jewelry, diamonds and colored stones in the area. CCPIT, along with the Gems & Jewelry Trade Association of China (GAC) and the National Gemstone Testing Centre (NGTC), are the main sponsors of the 2009 ICA Congress.
In September 2007, ICA signed a memorandum of association with CCPIT’s Panyu branch to promote colored gemstones in China. Following the ICA’s 2007 Congress in Dubai, Panyu won the privilege of hosting the next congress in China in 2009. In preparation for the gathering, the Panyu government has dubbed 2008 “The year of the Panyu colored gemstone industry.”
CP&J City Launched in ZhujiLocated in the city of Zhuji, in Zhejiang Province, China Pearls and Jewellery City (CP&J City) is a major marketplace construction project supported by the local government. Man Sang Group, a pearl and jewelry company listed on both the Hong Kong Stock Exchange (HKEx) and the American Stock Exchange (Amex), is the largest shareholder of the project, holding a 55 percent interest. The construction, which began in 2006, will take another four to six years to complete at a total cost of approximately $429 million.
CP&J City is designed to offer pearl and jewelry trading, processing, manufacturing, research and development services and related support such as logistics, e-business, exhibition and convention, accommodations, catering and entertainment amenities. The Phase One Market Centre in CP&J City, with an area of 1.8 million square feet, opened on April 18, 2008, with approximately 2,400 shops and booths. Major product lines to be traded at the market center include a full range of raw pearl and pearl products, as well as pearl jewelry, including freshwater, South Sea and Tahitian. Ricky Cheng, chairman of CP&J City, said he also welcomed other product lines, including jewelry made of gold, platinum, silver, diamonds, gemstones and semiprecious stones.
Zhuji, which was just named by the Chinese government as “China’s capital of the pearl,” holds a unique position in the pearl industry, with the world’s largest freshwater pearl distribution center utilizing the most advanced pearl processing technologies in China. Its pearl products are sold to more than 50 countries and regions around the world, including the United States, Europe, Japan, Russia and Southeast Asia. Seventy percent of the freshwater pearls in the world and more than 80 percent of China’s freshwater pearls are produced and traded in Zhuji each year.
The Marketplace• Overall demand is good for 0.30 to 0.70 carat H+/VS+.
• 1/2 carat in D-G/VS+ is popular.
• Larger stones in 1 carat+/VS+/H+, GIA certified and fine make, continue to sell well.
• The wholesale market was busy in the first half of April fulfilling orders for the Labor Day holiday May 1 to 3.
Article from the Rapaport Magazine - May 2008. To subscribe click here.