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ITN Source
CHINA: Diamonds take centre stage at the China jewellery fair in Shanghai
CHINA: Diamonds take centre stage at the China jewellery fair in Shanghai
Chinese jewellers were out in force at the annual Jewelry Shanghai 2007 show, hosted by the country's financial capital. Organisers said at least 400 million yuan (50 million U.S. dollars) worth of jewellery were on display at the four-day long annual jewellery fair at the Shanghai New International Expo Center on Tuesday (April 10). This year, diamonds are of special focus at the fair as it outshines traditional jewellery -- gold and jade. Chinese consumers, especially those of the older generation, typically favour gold and jade pieces as gifts for weddings, anniversaries and other family events. However, jewellers say diamonds are taking on a bigger part of the market share as younger consumers have began snapping up the luxury stone in recent years. Sales have also been given a boost by the reduction of value-added tax on imported diamonds from 17 percent to four percent last year, jewellers added. Shenzhen Gem Jewelry Co. Ltd, a seven-year-old company with more than a hundred stores nationwide, is one of a new breed of jewellers who chose to concentrate on diamonds to differentiate themselves from traditional jewellers. Song Hong, the company's operations director, said the market for diamond jewellery was gaining ground from its decade-old development and the country's economic success. "Actually, the development of the diamond jewellery industry has been going on for the last decade. It probably started in the early 90s, and basically it started because of the rise in economic status of the country. Also, everyone has developed a broadened view of what they see as beautiful. So as incomes rise, it is enough to support the consumption of such luxury items," she said. Shenzhen plans to expand towards second or third-tier cities in China, where rising incomes of the younger workforce are expected to fuel demand for diamonds. Marketing diamonds to men also displayed itself as an emerging trend. Jewellery distributor and wholesaler Boee Jewelry began developing and distributing diamonds for men, including diamond rings, pendants, bracelets and even belt buckles for the past five years. Kevin Chen, its marketing director, says the men's market for diamonds is one that should not be overlooked. "I would say the men's series (of diamond jewellery) is something that is overlooked in the Chinese market. Most of the time, jewellery has been targeted at female consumers. But there is demand from male consumers in China. Our customers for the men's series are those who have a certain taste for beauty, are of a certain social status and achieved a considerable amount of monetary strength," he said. Prices range from a few thousand yuan for the simple diamond ring to hundreds of thousands of Chinese yuan.
ITN Source | April 13, 2007
