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Non-Local Jewelers Swarm to Shanghai

Non-local jewelers are expected to touch off a new round of competition in Shanghai's gem market, with two influential entities successively establishing outlets in the city this week.

One, Diamend Jewelry, officially opened its store yesterday on the Nanjing Road pedestrian street, the first commercial firm authorized to sell foreign-made jewelry in China.

The 5,000-square-meter shop was jointly established by Shanghai New World Group and Zhejiang-based, Shanghai-listed Sino-Diamend Gems & Jewelry Investment, with a 100 million yuan (US$12 million) outlay.

Diamend Jewelry will sell branded jewelry, such as Dorgay and Gay Freres, imported from France and Orap karat gold items from Italy.

Karat gold is alloyed from 75 percent gold and 25 percent other metals including palladium.

Before Diamend, no government authorization has been issued to retailers to import auriferous jewelry as the central bank controls the distribution of the precious metal, industry officials said.

"Brand-name karat gold jewelry caters for the needs of some people, especially the young ones, because it brings modern designs," said Helen Mao, manager of the World Gold Council East China branch. "But the price may not be affordable because the imported items have high tariffs imposed on them."

In addition, Sun & Moon Jewelry Corp., the nation's largest platinum jewelry processor and also located in neighboring Zhejiang Province, inaugurated its store "Ming Pai" on Tuesday, a stone's throw from Diamend.

Sun & Moon paid 120 million yuan for the 10,000-square meter store. The Ming-branded platinum items are prominent among various types of jewelry displayed in the shop.

The pedestrian street has become a treasure place where most Shanghai gem sellers have set up their outlets, such as Lao Feng Xiang and Lao Miao. Now several out-of-town counterparts are expanding their business to the city by gaining a foothold on the street.

Shanghai is designed to become a hub for jewelry industry development in the future. But famous brand-names and large economic scale are crucial for success.

(eastday.com 01/19/2001)


In This Series

153 Fortune 500 Enterprises Invest in Shanghai

Overseas Investors Earn More Profit in Shanghai

House, Car, Information--Hot for Shanghai Consumers

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