The freshwater pearl industry in Mainland China has been transforming since 2008. The pearl manufacturers have started to focus on high-end pearl jewellery marketing in recent years. In terms of general consumers, they have paid more attention to design, materials and craftsmanship when purchasing pearl jewellery.
The reasons are two-fold. First, the production of freshwater pearls decreased year by year which has driven up the prices of pearls. According to the data released by the Gem & Jewelry Trade Association of China (GAC), the total production of freshwater pearls in 2011 was 1,500 tonnes, while in 2012 it declined 30 percent to 1,000 tonnes. In 2013 it marked a continuous decrease to 800 tonnes in 2013. In the same year, the value of retail sales recorded more than seven billion yuan, decreased 32.03 percent comparing to 2012. According to the report released from the Freshwater Pearl Industry Development Summit on 12 May 2014, the price of raw materials increased more than 40 percent year-on-year.
Second, the optimized pearl farming technique has allowed farmers to cultivate pearls in larger size, rounder shape and better colour, which is the other reason that drove the price rebound after financial crisis. Beijing Business Today said that the price of high-end pearls for collection is seeing 30 percent increase annually. Good quality pearls of 15 diameters are purchased for collection by consumers.
The most obvious transformation in the freshwater pearl industry is that pearl farmers have cut down production and tried to win the market by more quality pearls. The demand and supply has been more balanced. As said in the pearl summit, the freshwater pearl industry is seeing a transformation from quantity-oriented economy to that driven by quality. For Gyso Pearls & Jewellery Ltd, chief excutive officer Kenneth Choi told Hong Kong Jewellery that the pearl market in 2013 in Mainland China performed well. For good quality pearls, both sales volumes and prices increased. He said: “More pearl farmers have opted to cultivate good quality pearls. The new nuclear farming technique brings about larger and rounder pearls which can compare to South Sea pearls in terms of size and shape. Such large pearls are meeting the great favour in the mainland market.”
Ruans locates at the industry park of Zhuji city, Zhejiang Province. Marketing manager Amo said that after years, the market has been more developed. The company is eyeing on the international market. When president Xi Jinping’s wife visited Tanzania, she gave a strand of pearls from Ruans to the president of Tanzania and his wife as a national gift, which helped promote the brand to win the international attention.
In terms of consumption habit, cosumers pay more attention to design instead of settling for pearl strands. Moreover, the booming television and film, art and fashion industries have stimulated demand for stylish pearl jewellery by younger consumers.
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