Luxury

Cheaper Chinese products hits Rajkot’s imitation jewellery biz hard


<p>Representative image</p>
Representative image

Rajkot: Until five months ago, Narendra Mehta, an imitation jewellery maker in Rajkot, was selling around 250 kg to 300 kg of ornaments per day. However, sales have decreased to 100 kg to 150 kg. Mehta placed orders to make jewellery with around 200 families who crafted them at their homes. Now, only 50-60 families are receiving orders from Mehta.

Rajkot’s famed imitation jewellery, which adorned many Bollywood movies and TV serials, is struggling against the penetration of China’s jewellery, which is not just cheaper but also has identical designs.

According to the manufacturers, sales in the domestic market are down by 25% in the last 5-6 months, and exports are down by a staggering 40%. The workers, most of whom are from West Bengal and the eastern part of India, make this jewellery at their homes. The manufacturers provide them with material and give them specific designs.

The manufacturers used to import 80% of the raw material for jewellery from China. However, over the last few years, China started designing the ornaments in a big way. “China used to make designs that are popular in Western countries like the US and Canada. We do business in India, and our exports are done from Mumbai, Delhi, and Kolkata to Gulf and African countries. China is now designing jewellery that is preferred by Indian subcontinent and Gulf consumers,” Mehta said.

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Manufacturers say their Chinese counterparts have developed machinery that provides a good finish to their products, thanks to the govt support. Their jewellery is lightweight with varied designs.

Manish Patel, president of the Imitation Jewellery Association, Rajkot, said, “The Chinese jewellery is cheaper by 20%-25%. Even considering the import costs, if Chinese jewellery becomes at par with local jewellery, customers prefer their design.”

The traders do not export directly, but those from major cities like Mumbai, Bengaluru, Chennai, Jaipur, and Kolkata buy from local businessmen. The traders in Mumbai and Delhi export to Gulf and African countries, while traders in Kolkata export to Bangladesh.

The Rajkot-based manufacturers always received good orders during Navratri, but this year, overall sales were down by 30%. They fear that business during Diwali and the marriage season will also be grabbed by Chinese products.

Jignesh Shah, another manufacturer, said, “China was exporting imitation jewellery to India earlier as well, but the penetration has significantly increased now. The govt should form an ‘ease of doing business’ policy like China to help locals compete.”

  • Published On Oct 17, 2024 at 12:11 PM IST

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