Regardless of its durability and quality, a series of Chinese products have not only made deeper incursions into the Pakistani markets, either through legal imports, informal channels or joint companies for the local assembly, but also have gained popularity among the masses due to its affordability.
Some Chinese, official or illegal imports have literally eliminated local assemblies in the past. Currently, local artificial jewelry manufacturers have been struggling to improve their market share amid hard competition with finished Chinese products.
But what has led to the entrance of artificial Chinese jewels? Many market experts feel that record prices have led to an boom in the demand for artificial jewels, since people can no longer pay pure gold ornaments and jewels.
However, according to Mohammad Hussain, vice president of artificial jewels of small merchants and general merchant association, “it is only a myth that the increase in gold prices has created an extraordinary demand for artificial jewels in Pakistan. Actually, Indian dramas have brought this cultural change worldwide. “
High gold prices, cheap bulk imports from China and changing fashion trends boost purchases
The general boom in artificial jewelry sales was mainly caused by Indian dramas in Star Plus and other channels about 20 years ago. The dramas created a niche among the new and old generations that preferred to wear similar jewels for weddings, valimas and private parties to coincide with their attire.
As the import of Indian jewels has not been in vogue for more than 20 years, Chinese products have taken the market by assault. And although some small and medium Pakistani local manufacturers have emerged, followed by some large manufacturers that anticipate the very high demand, have not yet competed with Chinese quality and the finish in the last 20 years.
Some merchants still try to confuse consumers selling local and Chinese jewels as “made in India”, but in reality, these are not Indian goods.
Hussain explains “despite local manufacturers’ fungi growth, the sale of Chinese jewels has a 70 percent market share, while the local industry has a 30 percent action.”
China has the advantage of its cheap raw materials and the latest machines, while local production is a bit more expensive since Pakistani manufacturers have to import raw materials from China and fight to maintain competitive prices in the midst of unbearable public service invoices .
Despite this difficulty, local manufacturers continually strive to gain their market share. “Our products made locally can become cheaper if we obtain raw materials at low rates or the government provides some type of incentives on import imports,” Hussain waited.
Karachi has more than 100 small and medium manufacturers involved in local manufacturing, while there are also about 10 large units in the port city. In contrast, some cities in Punjab have more than 500 small and medium units each and a greater number of large units than Karachi.
In the sale of general artificial jewelry articles due to gold prices that reach more than RS0.3 million per 24 kt gold tola, Mr. Hussian said: “Our sales have increased between 25 and 30 pc. In recent years and a half instead of a great boom as people suppose. “
In addition, during the last three years, Western stainless steel jewel of originality. “All these westernized articles without a brand with the label of brand items are also arriving from China,” he said.
Several small and medium pure gold jewelers, disturbed by the decrease in jewelry sales, have changed to the manufacture of artificial jewels in the last year to survive in the markets.
Local importers also make orders in China, following the latest trends in the world of artificial jewels. Many Pakistani people, who generally lift bulk articles of the wholesale center in Mariot Road Baulton Market in Karachi, have also opened online jewelry sales businesses.
Plastic jewelry articles have also become popular in the last three or four years, but again, China governs markets despite the local manufacture of these articles.
That said, in the midst of the impressive market share of Chinese jewels, the local industry has produced a series of jobs. For example, a small factory has at least 100 directly or indirectly committed, while large factories have about 300 workers.
Consumers are making an expensive trip paying more than wholesale prices, since retailers have no limit on profit margins. During Ramazan, or a few days before Eidul Fitr, the profit margin doubles or triples to acquisition prices.
The initial wholesale price of an average wedding set is more than RS1,000, while the wholesale price of a good quality girlfriend varies between RS5,000-6,000. Consumers generally pay RS10,000-12,000 for an artificial jewelry wedding game, and depends on sharp mind ladies how they negotiate with merchants.
Hussain said that an artificial jewelry article, which has the wholesale price of RS100-300, enjoys a market share of 60-65 percent followed by articles that have a price of RS 400-1,000 that have an action of 30 per 30 per one hundred, leaving an action of 5-10 percent for articles between RS2,000-5,000. Elegant jewels have only a market share of 1 percent. It is difficult to evaluate the total market size of artificial jewels without credible official data.
“A 40-foot container ranges transported jewelry worth $ 25,000-30,000 of metal, stainless steel and plastic,” says Hussain, and adds that the jewelry evaluation value depends on quality, ranging between $ 3 per kg to $ 15 per kg.
Published in Dawn, The Business and Finance Weekly, February 17, 2025
