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China's costume jewelry export industry has been experiencing steady growth over the past couple of years. The country shipped out close to US$650 million worth of costume jewelry in the 10 months to October 2005, giving a year-on-year growth of more than 50 percent. Export sales were even 20 percent higher than total shipments in 2004.
China is home to more than 5,000 manufacturers of costume jewelry. Robust export growth has encouraged many new suppliers to join the line and the supplier base continues to grow.
The following are some of the key trends we see in China's costume jewelry industry:
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Prices will generally remain level in 2006 even though rising material costs will continue to be a challenge for most makers. Some suppliers will raise prices but only by about 5 percent. |
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The majority of makers will be increasing their production capacity to meet surging demand. While most large and many midsize companies will upgrade their current facilities or construct new factories, most small suppliers will increase subcontracting. |
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Low-end costume jewelry will continue to be China's mainstay for the next several years, even though many companies have started to produce up market designs. |
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Buyers can expect more ornate and colorful releases from China in 2006. Many new designs will feature beads, shells and imitation gemstones in a multitude of hues. But because these materials are available in a limited number of colors, suppliers are dyeing them in various shades to widen the range. |
Apart from mixing color, makers are combining beads, pearls and shells in different shapes and sizes for design variety. China makers can offer most types of costume jewelry, which can be broken up into many categories. For the purpose of this report, costume jewelry is divided into five major categories: bracelets & anklets, chokers & necklaces, earrings, rings, and brooches. While most suppliers offer a range of costume jewelry across all categories, some specialize in one or two lines. More than 80 percent of the suppliers in this report make all types of costume jewelry, and 15 percent offer four. These companies focus mainly on the production of chokers, necklaces and bracelets. Two of the suppliers in this report however, focus on just one type: rings or brooches. The features and prices of each type of costume jewelry are discussed according to low end, midrange and high end in the Products & Prices section. The R&D segment discusses how makers are creating design variations by mixing different types of materials in each style. It also touches on how suppliers are adding value to their designs by using alternative materials. The Materials & Components section explains sourcing of metal, plastic and decorative stones, and how this affects overall product quality. The Manufacturing section details the production and QC processes in small, midsize and large companies. Most costume jewelry suppliers in China are locally owned while a few are foreign-invested or joint ventures. Reflecting this breakdown, about two thirds of companies profiled in this report are locally owned, and the rest are funded mainly by Hong Kong or Taiwan suppliers.
All information contained in China Sourcing Reports is the result of exclusive, ground-level and definitive research conducted by Global Sources' analysts. Companies featured in these reports may or may not be clients of Global Sources.
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