International Jeweler Magazine will be present

There is a sense of anticipation in the Greater Shanghai Area, one of the world's most promising economic regions for luxury goods. New trade fair “Luxury China” scheduled to coincide with China's admission to the WTOMarket study forecasts excellent prospects for the coming decade.

The Greater Shanghai Area (GSA) is the richest economic region of China. This is where you find the most people with the highest incomes: of the 172 million or so Chinese who have a high monthly salary, around 52 million live in the GSA alone. This means excellent conditions for the market for high-quality consumer goods, such as watches and jewellery. The first International Exhibition for Jewellery, Watches and Technology, “Luxury China”, is to be held on Shanghai's new trade fair grounds from September 19th to 22nd 2002, just ten months after China's admission to the World Trade Organisation. The trade fair is being organised by two specialists from Europe: Messe MÜnchen / Germany and Fiera di Vicenza / Italy. Both trade fair organisers have specialised in the watch and jewellery market for decades. Their trade fairs, Inhorgenta and VicenzaOro as well as Orogemma, are among the sector's key trade events.

The results of a study show that Shanghai's population is extremely brand-oriented and very open to new trends and developments. Like Paris, London or New York for the western world, Shanghai is the metropolis where Chinese fashion trends are born. Consumption researchers talk about the nouveaux riches and yuppies who consume above average and help to form the opinions of other groups of society.

Experts believe that China will become the world's jewellery centre by 2010. Jewellery sales should exceed 18 billion US dollars a year. The annual growth rate for watches and jewellery, as well as for manufacturing equipment and machinery is expected to average more than six percent. Since 1995 the jewellery market has increased by more than ten percent a year. Demand is particularly strong for white metals; platinum, silver and white gold, and precious stones.

The market for luxury goods will be stimulated significantly by the recent decision to admit China to the WTO. For example, customs duties and taxes on imports will fall dramatically from January 1st 2002. Previously, for example, the import duty on uncut diamonds was three percent and on cut diamonds nine percent. These tariffs no longer apply. In addition, the luxury tax has been halved from ten to five percent. Another important milestone was reached at the end of November 2001: large parts of the state gold reserves were unblocked; the gold exchange opened for free trade on November 28th.

All this makes for excellent conditions for Luxury China. At the first Exhibition for Jewellery, Watches and Technology, exhibitors will include manufacturers of watches and jewellery, as well as suppliers of precious stones, pearls and accessories. They will be joined by producers of sales aids, as well as of machinery and equipment for producing watches and jewellery. Exhibitors at Luxury China will benefit from the facilities of the Shanghai New International Expo Centre (SNIEC), which was opened recently. It is centrally located in Pudong and is easy to reach from the city centre by public transport in around 20 minutes. The trade fair grounds have four halls with 45,000 square metres; the infrastructure meets the highest international standards.

Further information is available on the Internet at www.luxurychina.de or if you phone +49/89/94921702 (Ms. Chun Ji) or +49/89/94920180 (Dieter Dohr).
Frank Ulm will answer press representatives' enquiries, phone +49/89/94922390, or Petra Schmieder, phone +49/89/12749274.

Source: International Jeweler
Feb/March 02 issue