 |
 |
| |
Enlarge  |
|
| Winston Chow, Director & Deputy General Manager of Chow Sang Sang Jewelry Co & Vice Chairman of the Hong Kong Diamond Federation |
|
In an exclusive interview with the IDI Portal, Mr. Winston Chow, Vice Chairman of the Hong Kong Diamond Federation and Director and Deputy General Manager of the Chow Sang Sang fine jewelry company, provides vital insight into fine jewelry markets in the Greater China Region.
Mr. Chow’s jewelry company operates 180 fine jewelry outlets in the Greater China Region, which includes Hong Kong, mainland China, Taiwan and Macau. His company manufactures gold and platinum jewelry embedded with diamonds, jade, pearls and other precious gems.
We asked Mr. Chow if the region has been affected by the financial turmoil in the rest of the world. He replies: “No region can escape the US fallout completely. In Hong Kong and Taiwan we already felt the slowdown in the middle of the year, and that is because they are global economies. China, on the other hand, is tightly controlled. But even the Chinese economy is beginning to feel a certain level of deceleration.”
Nevertheless, Mr. Chow points out that there are several factors that are currently leveraging jewelry buying on mainland China. For one thing, it is the Chinese New Year, so people, many of whom have just received annual bonuses, are buying gifts these days, including diamond jewelry.
In addition, according to Chinese belief, 2009 is a lucky year to get married. “Gold and diamond jewelry are ‘must buy’ items for the happy couple but also for the rest of the family at Chinese weddings,” he notes. “Effectively, this means the diamond jewelry industry should thrive in mainland China in the coming year.”
 |
|
| |
Enlarge |
|
| Diamond pendant by Chow Sang Sang Jewelry |
|
The Chinese government has also taken a variety of steps to boost domestic consumption and the Chinese economy. Even if there is some kind of slowdown, no negative growth is expected and according to forecasts, the Chinese economy should continue expanding by somewhere around 9%.
We asked whether the diamond is regarded as a worthwhile investment in China. Mr. Chow replies: “In China, the diamond is not regarded as an investment but rather as a consumer good that retains its intrinsic value, in contrast to a fashionable handbag, for example, which will lose value very quickly.”
Is the Chinese diamond jewelry consumer into intricate and fancy diamond jewelry? Mr. Chow thinks not. “Most people in China are still buying their first or second piece of diamond jewelry. They prefer simple pieces with 10 to 30 point diamonds.”
International jewelry brands have done well in Hong Kong due to free import and export policies, but China is a different story: “In China there is a sales tax, plus VAT, plus duty taxes. This means that international jewelry brands are 50% more expensive there than they are in Hong Kong. Chinese tourists need only get on a train in southern China and they will be in Hong Kong within a few hours. They can either buy the international brands at much more affordable prices or purchase Hong Kong fine jewelry, which has a reputation for top quality and a wide variety, at good prices.”
Mr. Chow expects the Hong Kong fine jewelry industry to hold its own in 2009 despite the financial aftershocks in other countries. “During the past 5 years, Hong Kong has become one big shopping mall for Chinese jewelry consumers due to our accessibility. True, there is the problem of overheads, like rent, which have not yet dropped. But all in all, I expect the diamond jewelry industry to stand strong in 2009, both in Hong Kong and in mainland China.”
