Costume Jewelry Industry In China

China is one of the most significant manufacturers of costume jewellery, contributing to nearly 50% of the total world supply. The industry is currently growing at a high rate of 45% per annum. Over 7,000 costumes jewelry suppliers contribute more than US$1.5 billion worth of rings, anklets, necklaces, earrings, bracelets, and brooches throughout the year and the strong growth is still in the trend.

 

China is known for mass producing any product resulting in significantly lower manufacturing cost as compared to other countries. The industry is however, experiencing various problems in terms of rising raw materials costs and intense competitions from local players and large manufacturers. The low entry barrier and prospects of higher returns have led to the entry of a large number of companies.

 

China has been producing mostly low end costume jewellery for the last few years, but owing to stiff competition, manufacturers have moved up-market by manufacturing mid and high end products. This is a part of the strategy to differentiate the products from other manufacturers.

 

The country is exporting large volume of jewellery to other countries with major customers being the OEM and ODM customers.The export sales in the first quarter of 2011 have hit US$0.5 billion and a substantial growth rate is definitively in the coming months of this year which the exports for this full year could reach US$2 billion. The future of fashion jewelry industry lies in the developing countries and primarily China and India.

 

Percentage wise Division of Costume Jewellery Production in China

 

 

America is the single largest importer of China made costume jewelry, absorbing over 40 percent of the country exports while the EU member countries accounted for 20 percents. Manufacturers in China invest huge amounts in terms of R&D and designing to come out with innovative products and unique designs. A combinations of different materials is used to ensure that the end product is a success in the domestic and the international market produced. Some of the important facts are: