Lanka to carve niche in booming Chinese jewellery market

Dinesh WEERAWANSA in Beijing

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Eleven market leaders and high-ranking officials of the Gem and Jewellery Trade Association of China will visit Sri Lanka to participate in the FACETS Sri Lanka 2008 International Gem and Jewellery Show that will be held from September 6-9 at the BMICH. Having observed the market potential for the Sri Lanka jewellery industry in China, the Sri Lanka Embassy officials initiated this visit in consultation with the Gem and Jewellery Association of Sri Lanka.

China’s jewellery market is coming of age after years since the early 1990s. Statistics show that the jewellery market earns over CNY 100 billion (HK$ 96.1 billion) annually, and China is expected to become one of the world’s largest consumer markets.

An analysis of the market trends show that the demand is more for gold, diamond and platinum based jewellery as well as for coloured stone jewellery. According to official figures, during the period 2003 - 2008, the total retail sales amounted to CNY 730 billion. Experts in the industry predict a rise of over CNY 800 billion between 2008 and 2013 with the ever increasing upper middle class segment in the society.

The jewellery industry in China has earned its place as the third largest consumer hot spot preceded only by real estate and automobile industries.

The latest statistics published in March 2008 showed that the sale of gold and silver jewellery has maintained a good momentum and in 2007, the total value of the jewellery reached US$ 14.2 billion of which, US$ 6.2 billion was from imports projecting a net rise of 16.81% compared to the previous year with exports amounting to US$ 8 billion which rose by 35.57% during the period.

The visit of a high-powered delegation to Sri Lanka followed the successful discussion, Ambassador Karunatilake Amunugama and the Commercial Counsellor had with senior officials of the Gem and Jewellery Association in Beijing in early July this year.

The Embassy, with the assistance of the Gem and Jewellery Authority and the industry in Sri Lanka embarked on an intense campaign to promote Sri Lanka “Coloured Stones” in the fast expanding Chinese market.

The Sri Lanka Gem and Jewellery Authority and the Association have decided to showcase Sri Lanka Gems and Jewellery in exclusive jewellery fairs to be held in Beijing, Shanghai, Shenzhen, Macau and Hong Kong, the major manufacturing, processing and trading centres for jewellers in China.

To successfully pursue the campaign and promote Sri Lanka’s Gems and Jewellery, the Embassy has initiated a closer working relationship and regular interactions with the Sri Lanka Gem and Jewellery Authority, the Gem and Jewellery Association and particularly with the counterpart Associations in China with a membership of more than 1,800 entrepreneurs.

The Chinese leaders responded positively to provide facilities and concessions to expand Sri Lanka’s exports to the Chinese market during the bilateral meeting, President Mahinda Rajapaksa had with his Chinese counterpart as well as with the Minister of Commerce in Beijing this month.

During the forthcoming visit, the Gem and Jewellery Association of Sri Lanka will sign a MoU with the Gem and Jewellery Trade Association of China (GAC), the national association for the industry, approved by the Ministry of Civil Affairs of the People’s Republic of China for increased cooperation towards mutual growth and promotion of gem and jewellery trade between the two countries. This arrangement will provide a platform for knowledge exchange and increased trading opportunities between both markets.

According to Sun Fengmin, the Vice President and General Secretary of GAC, who would lead the delegation the MoU will create new avenues to exchange market expertise in jewellery design, training, and educational initiatives.

The members of the delegation are: Longmanhee, Deputy Director of GAC Foreign Liaison, Yi Xiao, Asst. Director of GAC Exhibition Dept, Zhao Zhiliang, Vice President of GAC and President, Beijing Caishikou Dept Store Co. Ltd., Chen Qizhou, Vice President of GAC and General Manager of Zhenzhou Ande Art and Crafts Co. Ltd., Chen Baokang, Vice President of GAC and President, Zhejiang Yuewang Jewellery Co. Ltd., Zhao Feng, GAC Director, President Shenzhen Xingzhongtai Gems Co., Ltd., Zhao Lanting, GAC Director and General Manager, Tianjing Jinhui Jewellery Co Ltd, Lu Xiaochun, GTAC Director and Director, Shanghai Laofengxiang Jewellery Research Institute, Guo Songqing, GAC Director and General Manager, Shandong Zhaojin Lujinjiang Co. Ltd. and Zhang Jingzhan, GAC Director and President, Ruili Jingbao Jewellery Co. Ltd.

The visiting delegation is scheduled to meet Dr. Sarath Amunugama, Minister of Enterprise Development and Investment Promotion and senior officials of the Gem and Jewellery Authority to discuss investment possibilities as well as to explore avenues to enhance trade.

The visiting delegation will also visit Ratnapura, organised by the Gem and Jewellery Association, to get a better insight into the Sri Lanka Gem Mining Industry.