Market Info
Market overview :
- The mainland and Hong Kong agreed in October 2005 to further liberalise the mainland market for Hong Kong companies under the third phase of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA III). Along with other products of Hong Kong origin, the mainland agreed to give all products of Hong Kong origin, including jewellery, tariff-free treatment starting from 1 January 2006.
- Hong Kong's jewellery industry is dominated by the precious jewellery sector. Its development has been facilitated by the expansion of the local market, including sales to tourists. Combined with re-exports, Hong Kong is the leading exporter of imitation jewellery and the second largest exporter of precious jewellery in the world.
- Jewellery production in Hong Kong encompasses a wide range of medium- to high-priced products. Hong Kong manufacturers are strong at producing small stones fashion jewellery. Hong Kong is leading in the production of pure gold items, and has long been recognised as a major centre for the production of jade jewellery. It has also evolved into a leading trading and distribution centre for pearls in recent years.
- Although value-added processes are still retained in Hong Kong, manufacturing processes are increasingly being shifted to the Chinese mainland, mainly Shenzhen and Panyu by means of building factories or outsourcing. Increasingly more manufacturers are making use of computer-aided design to shorten the time cycle for product development.
Market Trends
Articles of jewellery are getting more fashion oriented. In order to move up-market, innovative designs are very important. In doing so, it is necessary for manufacturers to have more metallurgical knowledge. New technology also allows the development of new or innovative designs. Jewellery, which used to target the high-end market, is also following more closely with the fashion trend and targeting at the younger, middle income level market segment, some in the form of brand jewellery.
Product Trends
In terms of materials, white metal will remain the mainstream, while there has been a renewed interest and demand for colour stone jewellery. Demand for yellow gold is on a rise again, albeit with a fashionable twist.
The number of younger consumers has increased over the past few years. They are fashion-conscious and putting a great stress on the design element. In many cases, they are influenced by the trends in clothing fashion, mainly through magazines, TVs or movies. In Asia, for example, the biggest jewellery buyers are the rising numbers of women entering the workforce, according to De Beers.
In terms of product trends, jewellery designs have been increasingly influenced by clothing fashion. Consumers, especially women, are opting for more accessories like jewellery to express their sense of style. While feminine, romantic pieces are expected to be sought-after in the luxury market, wear ability is getting important in the young girl market and this reflects in the increasing trend to wear jewellery with jeans in a mix-and-match fashion.
Costume jewellery is making a sparkling return. Increasingly more garment boutiques now offer jewellery as accessories complementing their new lines of fashion. Such development would contribute to an increased demand for elegant and romantic diamonds, which are expected to top the list of jewellery buyers, while semi-precious stones and coloured crystals targeting at the medium to lower-end segment are likely to sell well.
MDA grant and related regulatory points
Exhibitors are eligible for MDA Grant up to Rs.80,000/-, if they participate under India Pavilion organized by the Council. (subject to eligibility).
