China's Growing Jewelry Market Offers New Opportunities for Pakistani Gem Traders
In 2019, China’s jewelry market was valued at around RMB 610 billion. While the market declined in 2020 due to COVID-19, it has since rebounded, showing a 35% increase from January to March this year compared to 2019. Aqeel Ahmed, a Pakistani jewelry retailer with over 20 years in China, is hopeful that more Pakistani jewelry brands will enter the Chinese market.
Ahmed, whose family has been involved in gem mining and processing, started retailing after years of research and participation in marketing events. Last year, he opened his first retail store in Shanghai, and business is thriving. His store saw a 200% increase in sales during the first week of this year compared to 2019, and he plans to open around 30 more stores in China over the next five years.
Pakistan is known for its high-quality emeralds, with 6% of the world’s emeralds coming from the country. Pakistani emeralds are prized for their deep green color. Ahmed noted that high-quality emeralds are very rare, with one carat of top-grade emerald coming from 20,000 carats of lower-quality stones, and can fetch $12,000 per carat in the international market.
The China-Pakistan Free Trade Agreement (FTA) offers zero duty on rough stones imported from Pakistan, which is favorable for trade. Ahmed believes this will encourage more Pakistani companies to enter the Chinese retail and B2B markets and suggests Chinese retailers also explore the Pakistani market.
Additionally, Ahmed sees potential for collaboration between Pakistan and China in gem mining. Pakistan’s gem mining began in 1958 and could benefit from modern technology, which could be introduced through partnerships with countries like China. Syed Ali Shah from the Mineral Development Department KPK supports this, noting that new methods and technology could greatly enhance mining operations.
