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The Chinese market is the new focus for luxury and glamour for many types of jewelry (figure 1).Although the explosive growth of the last three decades is predicted to slow, domestic consumption and discretionary spending is expected to rise.These trends, along with rapid urbanization, a burgeoning middle class, and a younger generation of sophisticated shoppers, signals exciting opportunities for China and the global gem and jewelry industry.This requires China to address new challenges, such as sourcing enough gemstones to satisfy import and export demand (figure 2).At the same time, technological advances in manufacturing are leading to higher quality standards and lower labor costs, allowing China to meet the increasing demands of the global and domestic markets.
A sizeable portion of this discretionary spending goes to jewelry.
While rising costs of labor in China have created challenges for the manufacturing sector, this has led to greater domestic consumption of luxury products, including jewelry.
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