Fancy color diamonds at the Asian markets
2012 seems to be whizzing past at an astonishing speed as July marks the half-way point in this; the year of the dragon.
The Dragon is said to be a symbol that brings good luck and fortune. Like its symbol, this year does seem to be filled with optimism, hope and energy. Therefore, it is not surprising to see the rapid economic growth of China, the country from which it comes, rise as a force to be reckoned with in the world of colored diamonds.
As western jewelers such as DeBeers, Harry Winston, Laurence Graff and Tiffany’s plant new roots in asian soil, one of mainland China’s leading jewelers Chow Tai Fook continues to show positive growth.
Chow Tai Fook
As indicated by the June 2012 Frost & Sullivan Report, Chow Tai Fook maintains a leading market share as their net income surged 79 percent to $847 million as of March 2012. Credited to the overall growth is the increasing demand for high-end jewelry; for event-driven and festive celebrations…combined with a rising “per capita” disposable income.
In an interview with Rapaport News, Chow Tai Fook’s managing director Kent Wong, stated, “The growth in diamond jewelry demand is not only taking place in the important bridal engagement ring category, but also in contemporary diamond jewelry that is well designed for the Chinese buyers. Young and middle-aged Chinese consumers are buying contemporary diamond jewelry to celebrate their personal achievements and accomplishments. Diamonds are becoming an acceptable way for Chinese women to communicate their success and status.”
To this Wong adds: “The Chinese government’s new five-year national economic plan will seek to expand China’s gross domestic product (GDP) through domestic consumption. Government policies will support the further development of middle-class consumer spending. Urbanization policies will expand the economic base in Tier III and Tier IV cities as rural areas and farmlands are transformed into urban areas that will include shopping centers and department stores. For all of the above reasons, we expect Chinese demand for popular diamond categories to grow by as much as 30 percent annually over the next five years.”
Western consumers will more easily remember Chow Tai Fook as the designer of the pink diamond limited edition O pendant, a controversial gift for guests of the Oprah Winfrey show. The company was also named among the 17 companies shortlisted for the Jewelry News Asia (JNA Awards) 3 Decades of Excellence Award and Brand of the Year proving the year of the dragon is indeed a good one so far for them.