Imitation jewellery from China is flooding the imitation jewellery market in India, as imports from India’s northern neighbour have already captured 30 per cent of the country’s domestic market, industry sources said.
It is also hurting imitation jewellery manufacturers, as Indian traders are now importing finished goods from China.
According to data from the ministry of commerce, India imported imitation jewellery worth about Rs 130 crore in 2011-12. During the period April-September 2012, Rs 60 crore worth of finished imitation jewellery was imported from China. However, according to the Imitation Jewellery Manufacturers Association (IJMA), this figure underestimates the actual level of imports, which are believed to be 10 times higher.
“Dumping from China is taking place in huge quantities. Over Rs 1,000 crore worth of imitation jewellery was imported by India. Chinese jewellery is cheaper than that made in India, as they make it on machines and produce it in large quantities. That’s why Indian traders now prefer to import finished imitation jewellery from China,” said Nagendra Mehta, secretary of IJMA.
He said, “China has captured about 25-30 per cent of the Indian market and it is hurting Indian manufacturers in Maharashtra, Uttar Pradesh and other parts of India.”
The demand for imitation jewellery has surged by over 85 per cent in the last one year on account of the sharp rise in gold and silver prices, according to a study by industry body Assocham. The Indian imitation jewellery market, which is presently about Rs 8,000 crore in size, is expected to grow to Rs 15,000 crore by 2015 owing to growing demand, Assocham said in the study.
The study said high prices of gold have changed customer preferences from fine jewellery to relatively inexpensive costume jewellery. “About 75 per cent of the shopkeepers said women prefer imitation jewellery, as it is more affordable and can be customised,” it said.
A majority of the shopkeepers surveyed said people want attractive and affordable jewellery in line with current fashion trends. Even if gold prices decrease, artificial jewellery will continue to attract good demand, it said.
Vinod Vekaria, president of the Rajkot Imitation Jewellery Association, said, “In terms of price and manufacturing of imitation jewellery, Rajkot can beat China, but we need to be organised. Rajkot has a monopoly in handmade jewellery, as we have well-trained and experienced workers here and the cost of labour is very low compared to any other place in India.”
In view of the fierce competition from Chinese imports, IJMA has taken a few steps to safeguard its members. It has started branding India-made imitation jewellery in the last two years. IJMA plans to organise a fashion jewellery and accessories show at Mumbai in April this year.
“Chinese manufacturers are very tech-savvy and in India this sector is still unorganised. It is most important to promote the industry. This kind of show can help us to grow on the international front. At present India’s share of the international fashion jewellery market is less than one per cent, while China has a 25 per cent market share,” Mehta said.
IJMA has on several occasions made representations to the Central government and asked it to do something to discourage dumping by China, but so far the government has not responded, he added.
Imitation jewellery is largely made of brass, cast iron, nickel, plastic beads and stones, instead of precious metals and gems. It does not have much resale value and prices range between Rs 100 and Rs 30,000, the study said.
India is the second largest manufacturer of imitation jewellery after China. Indian costume jewellery has a huge demand in the US, Europe, Canada, Australia and many Asian countries.
