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Fashion jewelry industry against the trend

Wang Fang

China's fashion jewelry industry began in the early days of reform and opening up. With the continuous development of the domestic economy and the rapid growth of national income, China's fashion jewelry industry is booming and has now become an important part of China's jewelry industry. Cheap, fashionable and changeable materials are the keys to the rapid spread and prevalence of popular jewelry. At the same time, with the gradual change of people's jewelry concept from simply emphasizing value preservation to attaching importance to decoration, the development prospect of popular jewelry industry will be broader and broader.

1. The development and present situation of China's fashion jewelry industry

The development of China's fashion jewelry industry began in the late 198s. Originally introduced to Guangdong by Hong Kong and Taiwan businessmen. At that time, China was at the beginning of reform and opening-up, changing from the extreme commodity shortage to the relatively rich primary stage. Hong Kong businessmen and Taiwanese businessmen in Guangdong took advantage of this favorable opportunity of time, place and people to promote their own jewelry products developed, produced and sold abroad to the mainland market. By the early 199s, representative jewelry enterprises such as Italiana, Weinihua and Yimei had sprung up in Guangzhou and other places, forming an industrial base including a complete industrial chain of raw material supply, production, sales and R&D in the jewelry industry, and most of the products were sold to developed countries such as Europe and America. At the same time, due to the characteristics of low cost and high profit in the early stage of development, some people of insight brought the production and R&D technology of fashion jewelry to Yiwu, Zhejiang Province in the mid-199s, which was in line with the positioning of the local government as the "international commodity capital". The fashion jewelry industry took root and blossomed here, which made it the most important industrial base in China's fashion jewelry industry in the future, and also made it a local pillar industry. Time went to 2, almost while Yiwu's fashion jewelry industry ushered in rapid development, Qingdao, another popular jewelry base in China, was also quietly developing. Many Korean-funded jewelry enterprises have brought exquisite craft design and excellent product styles, and won a place for Qingdao in China's fashion jewelry industry ...

China Jewelry and Jade Jewelry Appraisal in 29

After more than 2 years of development, the small business in that year has now developed into a new industry-fashion jewelry industry, which has become an important branch of China's jewelry industry and formed an industrial cluster with Guangzhou, Yiwu and Qingdao as its three pillars. According to the data provided by local industrial and commercial departments, there are about 8, enterprises producing and supporting fashion accessories in China, with about 6, employees, with an annual output value of nearly 12 billion yuan, and exports account for about 5%. According to the statistics of the General Administration of Customs, from 25 to 27, the export value of China's fashion accessories was 611 million, 722 million and 855 million dollars respectively. In recent years, the development of fashion jewelry industry has been remarkable. From Table 1-4-3, it can be clearly seen that China's fashion jewelry exports showed a steady and rapid growth trend from 24 to 27. Due to the financial crisis, the export growth rate of fashion jewelry industry slowed down in 28, but it is still higher than the average growth rate of China's jewelry industry exports by 3.94%, and its proportion in China's jewelry products exports is getting higher and higher, and it has now jumped to the fourth place. According to the latest data from China Customs, the export of most jewelry categories in China decreased in different degrees from January to June 29 compared with the same period of last year, among which fashion jewelry became the only bright spot, and it was the only large-scale product that maintained positive growth, with a growth rate of 9.2%.

table 1-4-3 China's popular jewelry export volume from 24 to 28 (unit: thousands of dollars)

Guangzhou, Yiwu and Qingdao, as the three most important positions in China's popular jewelry industry, have their own characteristics. Guangzhou is the earliest developed city with a long history. It inherits the traditional characteristics of Hong Kong and Taiwan enterprises, with large scale, standardized management and excellent product quality. The main products are sold to European and American markets, and there are nearly 2, existing jewelry enterprises, accounting for about 3% of the domestic popular jewelry market. Yiwu, as the "commodity capital of the world", has a unique geographical advantage, with a large number of foreign buyers, which are mainly sold to developing countries such as the Middle East and Africa. Most of the products are middle and low-grade jewelry, and the prices are relatively low. There are more than 3, existing jewelry enterprises with about 2, employees, and the production and sales account for about 5% of the domestic market. Qingdao, as a rising star in China's popular jewelry industry, relies on the exquisite craftsmanship and exquisite design of Korean jewelry enterprises, and its strength can not be underestimated. There are nearly 1, existing jewelry enterprises, and their products are mainly high-grade jewelry, which are sold to developed countries such as Europe and America, occupying about 2% of the domestic market.

fig. 1-4-6 pie chart of market share of various popular jewelry bases

2. Main problems faced by China's popular jewelry industry

In the second half of p>28, under the baptism of the global financial crisis, China's popular jewelry industry, as the only bright spot in the jewelry industry, maintained a good growth momentum, but it still could not be independent, and some problems faced by the industry development gradually emerged.

2.1 foreign trade dependence is too high

China's accession to the WTO in the early 21st century has brought rare opportunities for the development of China's fashion jewelry industry. A large number of foreign companies purchase fashion jewelry in China by OEM. At one time, 7% of the jewelry products of the three bases were exported overseas, accounting for more than 5% of the international market share, making China a world fashion jewelry production base.

The financial crisis in p>28 brought a blow to China's fashion jewelry industry. The long-term export-oriented development mode made most enterprises in China's fashion jewelry industry lack brand awareness, their own sales channels are weak, and their dependence on the international market is too high. When foreign orders decreased, a large number of small and medium-sized enterprises closed down one after another. Take Yiwu as an example, foreign trade orders have dropped significantly since the second half of 28. In 28, the overall jewelry orders decreased by about 3%, including the US market decreased by about 5% and the European market decreased by about 3%.

China's jewelry and jade jewelry in p>29

At the same time, the high dependence on foreign trade has also caused many frictions among Chinese enterprises in foreign trade, such as green barriers and technical barriers.

2.2 uneven technological level

Korean fashion jewelry enterprises in China are superior in technology, followed by China, Hong Kong and Taiwan enterprises, while many local fashion jewelry enterprises are not high in technology level. When orders in developed countries are tight and product requirements are improved, local jewelry enterprises are hit hardest.

2.3 insufficient efforts to expand the domestic market

after the export was blocked, a large number of popular jewelry enterprises found that the development of the domestic market was almost zero. There are few popular jewelry enterprises with domestic sales channels and sales networks, and few local popular jewelry brands are well-known in the domestic market.

2.4 increase in labor costs

The fashion accessories industry is labor-intensive and the production base is characterized by low cost and strong production capacity. The new labor law promulgated in June 27 and implemented in January 28 has increased the labor cost of enterprises. In recent years, a series of policies to benefit farmers and farmers introduced by the state have also made it more difficult for enterprises to recruit workers.

at the same time, foreign buyers are still pushing down the purchase price, which makes domestic jewelry manufacturers fight in the price war with little profit or almost no profit, and no matter whether they win or lose, they have been defeated.

2.5 Many foreign-funded jewelry enterprises only regard China as a processing factory, and put the manufacturing links with the lowest added value, the most damaging environment, the most consuming resources and the need to reduce labor costs in China, while the core departments such as product design, raw material procurement and order processing remain at home or firmly in the hands of Chinese people. This phenomenon is very terrible, because the characteristics of jewelry processing industry are basically living by weeds, and moving where the processing cost is cheap. Historically, the processing industry has moved all the way from the United States, Japan, China and Taiwan Province, and finally moved to the mainland of China. But sooner or later, they will move to cheaper places, such as Vietnam, India and other regions to seek cheaper production bases. Developing upstream, improving the level of design technology and market development ability is the king.

3. New measures for the development of China's fashion jewelry industry

The financial crisis has also provided an opportunity for China's fashion jewelry industry to reflect, and associations and enterprises have also introduced a series of new measures.

3.1 Strive for the maximum rights and interests of enterprises from the policy level

China Jewelry and Jade Jewelry Industry Association has conducted in-depth research on three popular jewelry bases in China, and submitted the Proposal on Requesting to Adjust the Export Tax Refund Policy of Popular Jewelry (Imitation Jewelry) to the Ministry of Finance, the Ministry of Commerce and State Taxation Administration of The People's Republic of China on the premise of grasping the actual situation of enterprises (China Treasure Association [28] No.59). With the active efforts of the Association, in April 29, the export tax rebate rate of China's popular jewelry industry was adjusted from 5% to 9%. See Table 1-4-4 for the specific commodity codes. This policy adjustment comes at the time of the financial crisis, which is a great benefit to the fashion jewelry industry with high dependence on foreign trade, bringing tangible benefits for enterprises to expand their overseas business, and at the same time, the people who are experiencing the bottleneck period in China have increased their confidence.

Table 1-4-4 Commodity Code of Export Tax Refund Adjustment for Fashion Jewelry

3.2 The industrial base represented by Yiwu is on the road of transformation and upgrading

Fashion jewelry industry has been listed in 21 demonstration zones of industrial cluster transformation and upgrading in Zhejiang Province. Zhejiang Jewelry Industry Association actively organized experts, scholars and entrepreneurs in the jewelry industry to make suggestions for the future development of Yiwu jewelry industry, and finally put forward the 24-word guiding ideology of "industrial transformation, model innovation, leading role, overall promotion, group support and breakthrough development". At the same time, the Yiwu municipal government attaches great importance to the transformation and upgrading of Yiwu jewelry industry, and set up a research group composed of the Municipal Economic and Trade Commission and Zhejiang Jewelry Industry Association to discuss in depth the specific problems of establishing the "China Jewelry Industry Group", and put forward the establishment of a group R&D center, the use of unified brands, the establishment of domestic and international marketing networks, etc., to integrate the existing jewelry enterprises in Yiwu and create a regional brand made in Yiwu.

3.3 Brand building has been generally strengthened, and a number of excellent jewelry brands in Guangdong have stood proudly in the financial turmoil

In the financial turmoil, the Pearl River Delta has almost become the "eye of the storm" and "the hardest hit area", and a large number of small and medium-sized jewelry enterprises have closed down. However, some brand enterprises have shown strong anti-risk ability. Such as Weinihua, Italiana, Miao A, Junxing, etc., are still standing, and the domestic and foreign markets have also achieved good results.

3.4 Work hard on design and technology

The impact of the financial crisis has made jewelry enterprises understand that the price has reached the point where it can't be lowered, and only excellent products are the "amulets" of enterprises. Before this, many domestic enterprises didn't have a design R&D department, or the design R&D department just "copied" and "copied" other people's products, which brought China's imitation technology into full play. Because it was counterfeit, it could only earn one fifth, one tenth or even less of the original money. Learning from a painful experience, China's fashion jewelry enterprises focus on design research and development, new technology innovation, and increase investment in product research and development. Now, they have achieved fruitful results: Xinguang Group has developed environmentally-friendly metal jewelry high-plasticity zinc-based alloy materials, each of which can reduce the production cost of .3 yuan; Xingmei company cooperated with scientific research institutes to develop "copper-iron alloy"; Huanyi Company invented the diamond counting machine, which greatly improved the production efficiency of enterprises.

3.5 Pay attention to the domestic market, and gradually form brand awareness.

The difficulty of export has made many popular jewelry enterprises make up their minds to do domestic sales. From waiting for orders, making products according to orders to gradually learning and groping, participating in domestic jewelry exhibitions and handicraft exhibitions to setting up sales points in some cities, many export-oriented fashion jewelry enterprises are learning bit by bit. We have seen that the brand awareness of some enterprises has begun to take shape, providing franchisees everywhere with unified product packaging, store design and employee training. Although the road is still long, it is the only way.

4. Future Opportunities of Fashion Jewelry Industry

With the continuous improvement of people's living standards, the future of China's fashion jewelry industry is full of opportunities.

4.1 The domestic market has great potential

The annual trade volume of fashion accessories in the world's four major fashion capitals and cities such as Tokyo, China and Hong Kong exceeds 1 billion US dollars, and the ownership rate of women's fashion accessories in China is less than 5%, while that in Tokyo is 68.2%, Singapore is 48%, Hong Kong is 54%, South Korea is 68%, Malaysia is 47% and Thailand is 68%. It can be seen that the demand for fashion accessories in China's market in the future is huge.

4.2 With the growing influence of China, a number of outstanding fashion accessories enterprises are going global

We saw the name of Italiana (Group) Co., Ltd. in the list of licensed manufacturers for the p>28 Beijing Olympic Games, and we will see the names of Xinguang Group, Weinihua Jewelry Co., Ltd. and more Chinese fashion accessories enterprises in the 21 Shanghai World Expo. With the help of China's influence, more and more enterprises will truly go to the world, instead of OEM or OEM, they will be created by China.

4.3 Expand the category of fashion accessories

The meaning of future fashion accessories will be more extensive, not only including the category of jewelry, but also extending to all accessories. Fashion accessories industry will also cross with clothing, shoes and hats, luggage, electronics, home and other industries, and a variety of products will be derived.