AGLOBAL / COUNTRY STUDY AND REPORT

ON“Jewellery Industry in Hong Kong”

Submitted toGujarat Technological University

IN PARTIAL FULFILLMENT OF THEREQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ASMINISTRATION

UNDER THE GUIDANCE OFMS. Amola BhattAssistan Professor

Submitted by[Batch : 2012-14]

MBA SEMESTER III/IV[Jayeshkumar Chauhan, Enrollment No.: 127290592021]

[Mayur Chauhan, Enrollment No.: 127290592022][Shaileshkumar Chavada,Enrollment No.:127290592023]

[Jitendra chihla, Enrollment No.: 127290592024][Mansi Choksi, Enrollment No.: 127290592025]

[Jalpesh Chotaliya, Enrollment No.:127290592026]

L.J. INSTITUTE OF MANAGEMENT STUDIES

MBA PROGRAMMEAffiliated to Gujarat Technological University, Ahmedabad

December-2013

1

STUDENT’S DECLARATION

We, following students, hereby declare that the Global/ Country Study Report titled “

GLOBAL COUNTRY STUDY REPORT ON JEWELLERY INDUSTRY” in

HONGKONG is a result of my/our own work and our indebtedness to other work

publications, references, if any, have been duly acknowledged. If I/we are found guilty

of copying any other report or published information and showing as my/our original

work, or extending plagiarism limit, I understand that I/we shall be liable and

punishable by GTU, which may include ‘Fail’ in examination, ‘Repeat study & re-

submission of the report’ or any other punishment that GTU may decide.

Enrollment no. Name Signature

127290592021 Jayesh Chauhan

127290592022 MayurChauhan

127290592023 Shaileshkumar Chavada

127290592024 Jitendra Chihla

127290592025 Mansi Choksi

127290592026 Jalpesh Chotaliya

Place: …………….. Date:

………………..

2

L.J. INSTITUTE OF MANAGEMENT STUDIES

INSTITUTE CERTIFICATE

“Certified that this Global Country Study and Report Titled “GLOBAL COUNTRY

STUDY REPORT ON JEWELLERY INDUSTRY” in HONKONG is the bonafide

work of attached student list with enrollment numbers, who have carried out their

research under my/our supervision. I/We also certify further, that to the best of my

knowledge the work reported herein does not form part of any other project report or

dissertation on the basis of which a degree or award was conferred on an earlier

occasion on this or any other candidate. I/we have also checked the plagiarism extent of

this report which is ……… % and the separate plagiarism report in the form of html

/pdf file is enclosed with this.

Signature of the Faculty Guide

MS. AMOLA BHATT,

ASS. PROFESSOR

Signature of Principal/Direct

MR. SIDHARTH BIST,

DIN

3

PREFACE

This global country study at MBA program develops a feeling about the difficulties and

challenges in the business world. Only theoretical knowledge is not important, but

practical knowledge along with that is also important as it adds meaning to education.

Through this report we came to know the various aspects of the country, economic and

social factors surrounding HONGKONG. We came to know about the environment

prevailing in the country for trade and commerce carried out in the country.

This report even includes study of Education industry from the view point of trade

between India and Indonesia.

Thus this report is a compilation of Education aspects of Indonesia related to trade and

commerce of the country.

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ACKNOWLEDGEMENT

The successful completion of this report would not have been possible without co-operation and

support of our professor, friends, institute and the university.

We forward gratitude to respected director of our institute for giving us an opportunity to work

out this report.

We are also thankful to our project guide Prof. Amola Bhatt, and our GCSR Co-ordinator Prof.

Disha Mehta and Prof. Meetali Saxena, with whose help the study was made possible and who

provided the full guidance, co-operation and valuable suggestion about this report.

The valuable ideas, recommendation and response are simply adorable. We have been provided

all possible guidance and helpful suggestion for accomplishment of this project.

We are thankful to our college friends and all those who have helped us directly or indirectly in

the preparation of this report.

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TABLE OF CONTENTSSR.NO TOPIC PG. NO.

1 INTRODUCTION 7

2INTRODUCTION OF JEWELLERY INDUSTRY IN HONG KONG

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3 STEEPLE ANAYLISIS OF HONG KONG 25

4 STEEPEL ANAYLISIS OF JEWELLERY SECTOR IN HONG KONG

32

5 STEEPEL ANAYLISIS OF JEWELLERY SECTOR IN INDIA 38

6 COMPARISION BETWEEN INDIA AND HONG KONG 44

7 RECENT TRENDS BETWEEN INDIA AND HONG KONG IN JEWELLERY

55

8 SUMMERY 61

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Chapter: 1

Introduction of Hong Kong

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Hong Kong is suited in the south-eastern tip of China. With a total area of 1104 square

kilometers, the territory comprises Hong Kong Island, Kowloon Peninsula, and the more rural

part of Hong Kong- the New Territories, which is also including 262 outlying islands. Hong

Kong is ideally positioned at the center of rapidly developing East Asia.

Hong Kong, described as a ‘barren rock ‘some 150 years ago, is today a world-class financial,

trading and business centre and, indeed, a great world city. Hong Kong has no mineral resources,

but has one of the finest deep-water ports in the world. A hardworking, entrepreneurial and well-

educated population of about 7 million people serve as the foundation of Hong Kong’s

productivity and creativity.

Hong Kong has many nicknames, but the most famous is "Pearl of the orient" (Cantonese: Dong

Fong Chi Chu). It was named according to the shiny city lights from both sides of Victoria

Harbor and the high rise buildings. In addition, Hong Kong is also named as "Golden Egg", "The

World's most vertical City", “The orient Manhattan" "The paradise of shopping", "Food

paradise" and "City of life".

Hong Kong was occupied by UK 1841, it was formally ceded by China the following year;

various adjacent lands were added later in 19th century. Pursuant to an agreement signed by china

and UK on 19 December 1984, Hong Kong became the Hong Kong Special Administrative

Region (SAR) of the People’s Republic of China on 1 July 1997. In this agreement, china

promised that under its “one country, two systems” formula, china’s socialist economic system

would not be imposed on Hong Kong would enjoy a high degree of autonomy in all matters

except foreign and defense affairs for the next 50 years.

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Culture: “East Meets West”

Hong Kong is frequently described as a place where "East meets west", reflecting the culture's

mix of the territory's Chinese roots with influences from its time as a British colony.  Concepts

like Feng-Shui are taken very seriously, with expensive construction projects often hiring expert

consultants, and are often believed to make or break a business.

A popular destination for shoppers from around the world, Hong Kong has everything to offer

from the latest European fashion to traditional Chinese wares. Malls, department stores, and

designer boutiques offer an amazing contrast to the bustling open-air Stanley Market and Jade

Market shopping areas. Every district in Hong Kong has old-fashioned stores that sell Chinese

herbal medicine. The largest concentration of these shops is along Bonham Strand and Bonham

Strand West in Sheung Wan, where all types of pills, plants, and dried animals are for sale.

Hong Kong has an active nightlife centers on two major entertainment districts, LanKwai Fong

(Central) and Wanchai. Both areas are frequented by expats and locals alike. For a more quiet

evening, a trip to Victoria Peak offers a spectacular view of the city. There is also a promenade

along the TsimShaTsui waterfront, which is popular among young Chinese couples. Shopping, a

form of entertainment for the people of Hong Kong is even done at nighttime as evident in the

Temple Street Night Market.

The fusion of east and west also characterizes Hong Kong's food, where dim-sum, hot-pot,

and fast-food restaurants coexist with haute cuisine.

Art and entertainment: “Entertainment Hub”

Hong Kong is a renowned global center of trade, and calls itself an "entertainment hub". In the

late 1960s and 1970s its martial arts films become highly popular. Several Hollywood

performers, notable actors and martial artists have originated from Hong Kong cinema,

especially Bruce Lee, Jackie Chan, Michelle Yeoh, Jet Li and many others. A number of Hong

Kong film-makers have also achieved widespread fame in Hollywood, such as John Woo, Wong

Kar-wai, and Stephen Chow.

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Hong Kong is the center for Canto-pop music, which draws its influence from other forms of

Chinese music and Western genres, and has a multinational fan base. The government also

supports cultural institutions such as the Hong Kong Museum of Art, the Hong Kong

Philharmonic Orchestra, the Hong Kong Heritage Museum, and the Hong Kong Academy for

Performing Arts. For cultural development the government's Leisure and cultural Service

Department subsidies and sponsors international performers brought to Hong Kong.

The production of Hong Kong's soap dramas, comedy series, and variety shows reach audiences

throughout the Chinese-speaking world. Magazine and newspaper publishers in Hong Kong

distribute and print in both Chinese and English, with a focus on sensationalism and celebrity

gossip. The media in Hong Kong is relatively free from official interference compared to

Minland China.

Historical Background of Hong Kong:

Hong Kong has very rich history. It’s opened a new chapter in its eventful history at the stroke of

midnight on June 30, 1997 when it re -joined Mainland China from which it had been separated

for more than 150 years. The handover — as the historic event is commonly called — of British

rule to Chinese sovereignty was marked by the lowering of the British and Hong Kong flags and

the hoisting of the Chinese national and Hong Kong Special Administrative Region flags, a

ceremony that was carried out with great protocol.

In its early days, Hong Kong with its dry and largely infertile mountainous terrain was regarded

as an uninviting prospect for settlement. A population of about 3,650 was scattered over 20

villages and hamlets, and 2,000 fishermen lived onboard their boats in the sheltered harbour

Hong Kong’s one natural asset. Victoria Harbour was strategically located on the trade routes of

the Far East, and was soon to become the hub of a growing trade with China. Hong Kong’s

development into a commercial centre began with British settlement in 1841. At the end of the

18th century, the British dominated the foreign trade in Canton (Guangzhou) but found

conditions unsatisfactory, mainly because of the contradictory viewpoints of two quite dissimilar

civilisations.

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All most all the Public and utility services are developed in the Hong Kong between 1861 -1904.

The public and utility services include Gas Companying 1861, the Hong Kong Electric Company

in 1889, the electric tramways in 1904 and the Kowloon-Canton Railway, completed in 1910.

Public education began in 1847 with grants to the Chinese vernacular schools. In 1873, the

voluntary schools mainly run by missionaries were included in agrant scheme. The College of

Medicine for the Chinese, founded in 1887 with SunYatSen as one of its first two students,

developed into the University of Hong Kongin 1911 and offered arts, engineering and medical

faculties.

Hong Kong had faces many difficulty in its past i.e. During World War I, Japan presented its ‘21

demands’ to China. In 1931, Japan occupied Manchuria and tried to detach China’s northern

provinces, leading to open war in 1937. Canton fell to the Japanese in 1938, resulting in a mass

flight of refugees to Hong Kong. It was estimated that some 100 000 refugees entered in1937,

500 000 in 1938 and 150 000 in 1939 bringing Hong Kong’s population at the outbreak of World

War II to an estimated 1.6 million. It was thought that at the height of the influx, about 500 000

people were sleeping in the streets.

Japan entered World War II on December 7, 1941, when its aircraft bombed United States

warships at Pearl Harbour. At about the same time, Japanese armed forces attacked Hong Kong

(December 8, 1941, Hong Kong time). They invaded Hong Kong across the border from China

and pushed the British from the New Territories and Kowloon on to Hong Kong Island. After a

week of stubborn resistance on the island, the defenders including the Hong Kong Volunteer

Defence Corps were overwhelmed and Hong Kong surrendered on Christmas Day.

But some good days are came after a period of economic stagnation caused by the United

Nations’ trade embargo on China arising from the Korean War, Hong Kong began to

industrialise. No longer could Hong Kong rely solely on its port to provide prosperity for its

greatly increased population. The rise of Hong Kong’s manufacturing sector began with the

setting up of textiles mills. The mills gradually expanded their range of products and, by the

1960s; they included man-made fibres and garments. During this decade textiles and clothing

made up about half of domestic exports by value.

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As the public health is more important for any country the Hong Kong Government’s also

developed health care policy in 1974 to ensure no one was denied adequate health care due to a

lack of means. In accordance with that policy, the public sector provides a range of heavily

subsidised health care services, available to everyone. The private sector, on the other hand,

provides non-subsidised medical services that offer patients more choice and personal care.

Hong Kong’s health care service — public and private — meets the highest standards. This is

reflected in health figures that show people having longer lives and one of the world’s lowest

infant mortality rates.

RELIGION

Hong Kong enjoys a high degree of religious freedom. The majority of Hong Kong's population

practices ancestor worship due to the strong Confucian influence. A sizable Christian community

of around 500,000 exists, forming about 10% of the total population. Believers of Buddhist or

Taoist also exist. There are also an estimated 70,000 Muslims, between 2,000 and 3,000 Jews,

and a few Hindus; Sikhs and Baha'is are also represented. Apart from offering religious

instructions, many major religious bodies have established schools and provided social welfare

facilities.

Hong Kong's religious beliefs are tied to the region's early role as a fishing community. Tin Hau,

the protector of seafarers, has been honored with several temples throughout Hong Kong for at

least 300 years. HongKongers especially elder generations, go to Taoist or Buddhist temples to

appease the deities and, usually, to ask for compassion or good fortune

PEOPLE

A city of 6.8 million people, Hong Kong is a cosmopolitan metropolis where old tradition blends

perfectly with Western culture and post-modern trends. Ethnic Chinese make up the bulk of its

population, but there is also a sizeable presence of expatriates and people of different ethnicity,

all enjoying the freedoms and prosperity of this city, once a fishing village.

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While the waves of Western culture have long arrived on the shores of Hong Kong, traditional

values are still held by many Chinese people. Worshipping of ancestors live side by side with a

night out in an Irish pub in the fashionable area in Central, Hong Kong's main business district

Hong Kong is an affluent society with a per capita GDP of US$23,000 in 2003, rivaling those of

the most developed economies. Hong Kong is one of the safest cities in the world. Both English

and Chinese are the official languages. This bilingualism features in daily life in Hong Kong

with many people speaking fluent English. Cantonese is the local dialect and an increasing

number of Hong Kong people speak good Putonghua.

FREE TRADE

A founding member of the World Trade Organization (WTO), Hong Kong is firmly committed

to free and open trade. There is no barrier on trade. Hong Kong does not charge tariff on

importation or exportation of goods. Import and export licensing is also kept to a minimum.

Licensing is only imposed when there is a genuine need to fulfil obligations undertaken by Hong

Kong to our trading partners, or to meet public health, safety or internal security needs.

After the reunification with China in 1997, Hong Kong has continued its separate membership to

the WTO using the name "Hong Kong, China".

INTERNATIONAL FINANCIAL CENTRE AND SERVICE HUB

While traces of its past can still be found in the fishing villages scattered in its outlying islands,

Hong Kong has emerged from a post-war manufacturing base to a major financial and services

centre featuring state-of-the-art infrastructure and highly efficient business services. Its stock

market capitalization is only second to Japan in Asia. The stock market of Hong Kong provides a

wide variety of products ranging from ordinary shares to options, warrants, unit trusts and debt

securities.

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DEMOGRAPHIC OVERVIEW OF HONGKONG

Hong Kong is one of the most compactly populated areas in the world with an overall density of some 6,300 people per square kilometers.

Hong Kong has one of the world’s lowest birth rates—1.11 per woman of child-bearing age as of

2012, far below the replacement rate of 2.1. With just 1,032 babies born in 2009 to every 1000

fertile women, it is estimated that 26.8% of the population will be aged 65 or more in 2033, up

from 12.1% in 2005.

The demographics of Hong Kong mainly comprises of ethnic Chinese, making up more than

93.6% of the population. The inherited home of most Hong Kong people originate from various

regions in Guangdong. Most Hong Kong people nowadays are the issues of immigrants from

Mainland China and around the world after the end of World War II. Despite Filipino and

Indonesian foreign domestic helpers being the ethnic minorities, there are over 273,609 foreign

domestic helpers in Hong Kong, accounting for 4% of the entire population.

The population of Hong Kong increased markedly during the 1990s, reaching 6.94 million in

2005. About 96 % of Hong Kong's population is Chinese, the majority of which are Cantonese.

Groups such as the Hakka and Teochew are also extensive. Used in government matters,

Cantonese is spoken by most of the local Chinese population at home and in the office, although

English is also widely understood and spoken by more than one-third of the population.

The remaining 4 % of the population is collected of non-Chinese, and among these is a

significant South Asian population. Some Nepalis live in Hong Kong are Gurkhas, who chose to

stay after their service to Britain, and their progenies. More than 15,000 Vietnamese, who came

to Hong Kong as refugees, have become permanent residents. Around 140,000 Filipinos work in

Hong Kong as housekeepers, with other such workers coming from Thailand and Indonesia.

There are also a number of Europeans, North Americans, Japanese, and Koreans.

Hong Kong is one of the most densely populated countries/dependencies in the world, with an

overall density of more than 6,200 people per km square.

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ECONOMIC OVERVIEW OF HONGKONG

Slow growth of 1.4% in 2012 is attributed to depressed global demand which has been offset by

strong domestic demand and high consumer confidence. Going forward growth is expected to

accelerate driven by improved global economic conditions to3% in 2013 and 4-5% through

2016.Hong Kong is a major international financial centre and a leading world trading entity.

Hong Kong is amongst the freest economies in the world and is home to some of the region's

most important corporate headquarters. In 2012, Hong Kong topped the World Economic

Forum's Financial Development Index. In GDP (PPP terms) it stands as the world’s 36th-largest

economy.

The city resides in an area smaller than the Australian Capital Territory and has a population of

about one third of Australia’s. Hong Kong is a major provider of services to China and is the

mainland's designated centre for the internationalisation of the Renminbi. Its economic prospects

now depend largely on its links with China.

Hong Kong’s economic integration with mainland China developed through the 1980s with the

establishment of China’s first Special Economic Zone in Shenzhen, just across the border,

transforming a fishing village into a gleaming metropolis of over 10 million people. Investment

by Hong Kong industrialists across the Pearl River Delta (PRD), arching from Hong Kong in the

East through Shenzhen, Dongguan, Guangzhou, Foshan, Zhongshan and Zhuhai to Macau in the

West, has been one of the main drivers of China’s rapid economic modernisation.

Since 2004, the China-Hong Kong Closer Economic Partnership Arrangement (CEPA) has

accelerated integration between Hong Kong and the PRD, giving favourable treatment to Hong

Kong manufactures and services that meet rules of origin criteria. The non-discrimination against

foreign-owned companies under these criteria has allowed some Australian companies to benefit

from CEPA and gain greater access to mainland China.

Hong Kong’s manufacturing sector has moved almost completely to the mainland since the

1980s, and services now dominate its economy, accounting for 93 per cent of GDP. Over the

past ten years, Hong Kong’s growth has been supported by the tourism industry, notably from

the opening to mainland-Chinese tourists, boosting retail sales as well as hospitality and

construction.

15

The financial services sector is expected to grow further, boosted by China’s efforts to broaden

the international use of the Renminbi. Australian service providers are actively engaged in

banking, transport and logistics, employment consultancies, engineering, construction, aviation,

architecture, accountancy, legal services, insurance, tourism and retailing.

Following the global financial crisis, export-dependent Hong Kong was particularly affected by

the slowdown in China and the decrease in demand from key re-exports markets in the United

States and Europe, resulting in negative 2.5 per cent growth in 2009. 2010 saw a quick recovery

to 6.9 per cent growth before the Euro crisis dampened growth in 2011 (4.9 per cent) and 2012

(1.4 per cent). The fourth quarter of 2012 showed the strongest growth of the year, 2.5 per cent,

and growth picked up slightly to record 2.8 per cent in the first quarter of 2013. Exports to the

US and Europe were weak, with domestic demand and inbound tourism supporting growth.

Hong Kong’s budget for 2013-14, the first under new Chief Executive C Y Leung, showed the

economy in a strong fiscal position, with higher than expected revenue from land taxes revising

the forecast for 2012-13 to a HK$65 billion (A$8.2 billion) surplus, after earlier estimates

predicted a HK$3.4 billion deficit.

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GEOGRAPHICAL OVERVIEW OF HONGKONG

Hong Kong consists of Hong Kong Island, Kowloon, and the New Territories. The Kowloon

Peninsula is attached to the New Territories in the north, and the New Territories are in turn

connected to mainland China across the Shenzhen River. In total, Hong Kong has 236 islands in

the South China Sea, of which Lantau is the largest. Hong Kong is strategically located at the

mouth of the Pearl River Delta in Southern China. It is within a few hours' flight from all major

cities in East and Southeast Asia, including Beijing, Shanghai, Tokyo, Seoul and Singapore.

Bordered by the Shenzhen Special Economic Zone to the north, Hong Kong has a total area of

about 1,100 square kilometers.

To the surprise of many visitors, this bustling city also features lush green hill slopes, secluded

beaches, leisurely rural landscape and rocky shorelines. Hong Kong is eight hours ahead of GMT

and has a sub-tropical climate. The body of water between Hong Kong Island and Kowloon

Peninsula is Victoria Harbor, one of the deepest maritime ports in the world.

Out of the territory's 1,102 km2, only less than 25 % is developed. The remaining land has been

reserved as country parks and nature reserves.Hong Kong's climate is subtropical and prone to

monsoons. It is cool and dry in the wintertime, and is hot and rainy from spring through summer.

It is warm, sunny, and dry in autumn. Hong Kong occasionally has typhoons.

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TRADE POLICY OF HONG KONG

Hong Kong's Trade Policy Hong Kong is a free port which thrives on free trade. Its open door

policy has enabled it to become one of the world's largest trading economies and an international

financial and commercial center serving the Asia-Pacific region and the Mainland of China.

The cornerstone of this approach is a strong and credible multilateral trading system. The World

Trade Organization (WTO) which came into being on 1 January 1995 to succeed the General

Agreement on Tariffs and Trade (GATT), provides wired rules and disciplines for the conduct of

multilateral trade. Hong Kong is a founding member of the WTO and has been participating

actively in its activities. This attests to Hong Kong's dedication to an open and free multilateral

trading system. Hong Kong has continued its separate membership since July 1, 1997 using the

name "Hong Kong, China".

Hong Kong became a member of the Asia-Pacific Economic Cooperation (APEC) and the

Pacific Economic Cooperation Council (PECC) in 1991. Hong Kong belongs, in its own right, to

the Asian Development Bank (ADB) and the World Customs Organization (WCO). It is an

associate member of the United Nations Economic and Social Commission for Asia and the

Pacific (ESCAP) and relates, in varying degrees, to the United Nations Conference on Trade and

Development (UNCTAD). Since April 1994, Hong Kong has been an observer of the Trade

Committee of the Organization for Economic Cooperation and Development (OECD). Hong

Kong continues to participate actively in APEC, PECC, and the OECD Committees as from July

1, 1997 using the name "Hong Kong, China".

The free trade policy means Hong Kong preserves no barriers on trade. Thus, Hong Kong does

not charge tariff on importation or exportation of goods. Import and export licensing is also kept

to a minimum. Licensing is only imposed when there is a genuine need to fulfillduties

undertaken by Hong Kong to our trading partners, or to meet public health, safety or internal

security needs.

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Chapter: 2 Introduction of Jewellery Industry in Hong Kong

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Hong Kong’s jewellery industry was well-known for its flexibility and value for money. While

most value-chain activities used to be conducted in Hong Kong, in the 1990s, manufacturing

processes were increasingly shifted to southern China, leaving mainly the higher value-added

processes in Hong Kong. The jewellery industry earned its receipts from both local retail and

exports. The retail sector benefited from the influx of Mainland Chinese tourists in the early

2000s, while the export sector continued to be one of the largest exporters of precious jewellery

in the world. Hong Kong jewellery industry can be divided into two main categories: precious

metal jewellery and imitation jewellery. In terms of production and sales volume, precious metal

jewellery gets the lion’s share. Manufacturers in Hong Kong are specialized in creating

contemporary design jewellery set with diamonds, precious and semi-precious stones as well as

pearls. Jewellery “made in Hong Kong” is highly renowned all over the world and attains a

higher standard of craftsmanship over their counterparts in other South East Asian countries;

nevertheless it lags behind the state-of-art technology of Italy and Japan.

Hong Kong leads the world in the production and consumption of 24kt gold With Hong Kong’s

reunification with Mainland China, many manufacturers have moved their production facilities

back to China, especially mass production and labor intensive jewellery. Shenzhen is developing

at a fast pace in chain-making and jewellery casting from medium to low end price range; in

Panyu county around 250 factories are found, the majority belongs to Hong Kong manufacturers

that produces jewellery adorned with diamonds, precious stones and pearls. These companies

maintain their facilities in Hong Kong for design output, management and control and not to

mention the production of high end jewellery which requires a more skilled craftsmanship.

In view of the restructuring of the jewellery industry in Mainland China, the levels of efficiency

and technology standard have improved as a result of joint venture with foreign producers like

Hong Kong. Certain production phases are made in their factories in Southern China and

subsequently ship back to Hong Kong for other value-added processes before delivery to

20

overseas customers. This phenomenon can explain an increase in imports and re-exports and a

cut-throat competition existing not only in the local market, but also with Thailand, Singapore

and Korea who profit either from rich resources of raw materials or a rise in the production

capacity.

In general, jewellery products made in Hong Kong can be classified in 3 categories:

1) jewellery made of precious metal, mounted with diamond, gem jade, pearls, etc;

2) jewellery made of precious metal, NOT mounted with diamond, gem jade, pearls, etc;

3) Other jewellery and related articles made of precious metal or precious stones.

Hong Kong is the world’s fifth largest exporter of precious jewellery and the world’s second

largest exporter of custom jewellery. It is also the leading production centre for pure gold items,

the major centre for jade production and the leading trading and distribution centre for pearls. On

top of all that it’s also the capital of Asia’s diamond trade

Industry Trends

Articles of jewellery are getting more fashion oriented. Innovative designs are important for

moving up-market. In doing so, it is necessary for manufacturers to have more metallurgical

knowledge. New technology also allows the development of new or innovative designs.

Jewellery, which used to target the high-end market, is also following more closely with the

fashion trend and targeting at the younger, middle income level market segment, some in the

form of brand jewellery.

Recent technological development allows massive production of jewellery products with good

quality and competitive prices. While Hong Kong's jewellery industry remains basically a

handicraft industry, a number of larger establishments have made use of sophisticated and

automated production equipment. These manufacturers’ integrate advanced production

techniques, such as electroforming, with handicraft skills to enhance their efficiency. They install

computer-aided design and manufacturing (CAD/CAM) systems, as well as computer

numerically controlled (CNC) machine tools in their product design and manufacturing

processes.

21

New technologies also enable Hong Kong manufacturers to develop new materials for

fashionable jewellery items other than fixing defects and to increase the accuracy of the designed

output.

Like other industries, the trend of consolidation also happens in the jewellery industry, especially

in the US. In the past decades, the numbers of jewellery manufacturers and retailers in the US

have declined substantially. At the same time, the business of the smaller retailers has steadily

declined as they struggle to compete against mass merchants such as Wall-mart, Target and

Costco, which have successfully captured a bigger share of consumer spending. Wall-mart, for

example, has risen to be the leading jewellery retailer in terms of sales turnover in the US. A

recent survey by Research and Markets Ltd also reported that 20% of fine jewellery shoppers in

the US made their purchases at these outlets. Mass merchants usually have stronger bargaining

power than their suppliers; Hong Kong exporters are expected to face downward pressure on

their ex-factory prices and provide more value-added services to win buyers' orders.

On marketing and distribution, some Hong Kong jewellers have built up their own branded

jewellery or licensing agreements. While this is an effective strategy to enhance long-term

competitiveness, it may also require local jewellery manufacturers to move into distribution.

Apart from establishing direct retail outlets, the rapid development of online shopping in recent

years is also noteworthy. It is expected that the application of ecommerce in the jewellery sector

will continue to proliferate. Over the longer term, the development of internet shopping

represents a new direct sales method for Hong Kong jewellers in promoting their products.

General Trade Measures Affecting Jewellery Exports

In China, all gold trading at the wholesale level for producers and wholesalers now takes place in

the Shanghai Gold Exchange, introducing market prices to the transactions. In

2004, China removed all barriers to gold licensing for manufacture, distribution and retail of gold

jewellery products, and allowed some mainland companies to import gold jewellery. In August

2010, China announced to let more banks import and export gold, open trading further to foreign

companies, increase foreign members on the Shanghai Gold Exchange, and also study ways to

allow foreign qualified bullion suppliers to deliver to the exchange.

22

Effective from May 2005, the value added tax (VAT) on exports of jewellery articles of gold and

precious materials under general trade is exempted, but the VAT on the import content of such

trade, collected when imported into China, is not rebated. Starting from

July 2007, for certain pearl, precious stones and precious metal, the rebate rate was reduced from

13% to 5%. On the other hand, effective from April 2009, the export tax rebate on imitation

jewellery has been lifted from 5% to 9%.

Diamond (including rough diamond and unset polished diamond) imports and exports under

general trade are required to go through the declaration formalities with the customs located

inside the Shanghai Diamond Exchange (SDE). Diamonds directly entering SDE from overseas

are exempted from import duty, value-added tax and consumption tax. All diamonds traded in

SDE are exempted from value-added tax.

Diamonds entering SDE from domestic sources can enjoy tax refund, and the tax collected at the

processing stage shall be fully refunded when diamonds are exported, while those flowing from

SDE to overseas cannot enjoy tax refund. For diamonds channelled from SDE to the domestic

market, no import duty is required but the value added tax (4% for polished diamonds but none

for rough diamonds) shall be duly paid. The consumption tax is not collected until the stage of

retailing, at a rate of 5%.

In response to the concern that diamonds from a few African sources might have been sold

through illegal channels to finance civil wars and conflicts among neighbouring countries, the

World Diamond Council (WDC), with some participating countries, have come up with a

certification scheme to keep track of the rough diamonds exported from the African conflict

areas (the so-called Kimberley Process). Both Hong Kong and China, as signatories to the

Kimberley Process, has introduced this certification scheme since 2003. Accordingly, all parties

in Hong Kong carrying on a business of importing, exporting, carrying (including carrying rough

diamonds in transit and transhipment), buying or selling rough diamonds must now be registered

with the Trade and Industry Department (TID). They are also required to obtain Kimberley

Process (KP) Certificates issued by TID before the import and export of rough diamonds. In July

2008, the US extended the economic sanctions against Burma (Myanmar), which include a

prohibition on virtually all imports from that country. Separately, effective from September

2008, imports of rubies and jadeite mined or extracted in Burma as well as articles of jewellery

23

containing such gems into the US are banned. This ban is noteworthy for Hong Kong and

mainland jewellery exporters because it applies to jewellery from any location that contains

Burmese rubies and/or jadeite. In addition, exporters of rubies, jadeite and jewellery thereof from

non-Burmese sources are required to implement measures to prevent trade in Burmese covered

articles. In the EU, environmental and health concerns continue to be major issues. The EU has

Jewellery Industry in Hong Kong banned the imports of jewellery containing nickel, which can

cause allergic reactions when in contact with skin. While this measure provides Hong Kong

jewellery products made of other materials a niche in exporting to the EU, other suppliers have

started to catch up as they adjust to the requirement. In addition, imitation jewellery containing

lead is also under strict regulations under the US Consumer Product Safety Commission. Other

than the above official regulations, various organisations are issuing qualifications to various

jewellery materials. They include the World Gold Council, the Natural Colour Diamond

Association (NCDIA) and the Diamond Training Company (DTC) For example: Tanzanite

Foundation has developed a grading system for tanzanite. Gaining their qualification is an

increasing trend, and their measures are expected to be a standard in the future.

24

Chapter: 3 Steeple Analysis of Hong Kong

25

S: SOCIAL CULTURE

Structurally, one of the first laws to define people's relationships was the Hong Kong

Matrimonial Ordinance passed in 1972. The law set the precedence to ban concubinage and same

sex marriages with a declaration for heterosexual relationships with one partner only.

Other economic changes include families in need of assistance due to both working parents. In

particular, foreign domestic helpers have become an integral part of the household since the late

1980s.Traditional Chinese values such as "family solidarity", "courtesy" and "saving face"

carries significant weight in the minds of the people. Hong Kong's mainstream culture derives

from, or is heavily influenced by, the Cantonese from the neighboring province of Guangdong,

China. There are also substantial communities of Hakka, Fukien,Teochew and

shanghaise people.

SOCIAL STRUCTURE

National Language – Cantonese

Bilingual society

Two major system of social stratification – Europeans & Chinese

Dual-income family

Gender discrimination occurs

Materialistic

Secret society and lubrication

26

T: TECHNOLOGY

The People's Republic of China (the Mainland) is widely recognized as having a strong research

culture and sound technological capability. Emphasis placed on science and technology (S&T)

development has been a major force behind the Mainland's rapid technological advancement in

recent years. The substantial volume of research results produced by the Mainland's network of

S&T institutions offers valuable opportunities for technological collaboration between Mainland

China and the Hong Kong Special Administrative Region (HKSAR). We believe that Mainland's

rich technological resources is a key source of input and a critical catalyst for the innovation and

technology development of HKSAR's industries. More importantly, leveraging on the Mainland's

research capabilities strategically will contribute to the economic development of both places.

To facilitate more technological joint ventures between the Mainland and the HKSAR, it is

essential for interested parties to have access to information on Mainland institutions engaged in

science and S&T activities. We hope that the information contained in this site can be of help to

readers who are looking for collaboration opportunities with the Mainland.

The following are the areas of technology sectors in Hong Kong: Automotive Parts & Accessory Systems

Biotechnology

Chinese Medicines

Communication Technologies

Consumer Electronics

Environmental Technology

Integrated Circuit Design

Logistics & Supply Chain Management Enabling Technologies

Nanotechnology & Advanced Materials

Opto-electronics

Textile & Clothing

27

E: ECONOMIC

In 1995, Hong Kong was ranked as the eighth largest trading entity in the world. It is one of the

Asian Tigers, along with Singapore, Taiwan and South Korea. Over the past two decades Hong

Kong economy has more than quadrupled in size with an average GDP growth of 7.5% in real

terms. However, the real GDP began to grow lesser in the recent years; 4.8% in 1995 and 4.7%

in 1996 as many labor intensive industries have been relocated to China and Southeast Asia. The

GDP in 1997 was slightly higher, at approx. 5.4% due to the recovery of domestic demands.

Hong Kong’s GDP is lower compared to Southeast Asian countries particularly to other Asian

tigers where average GDP is 8%. The local workforce is enjoying continuous rise in income not

only in money terms but in real terms too. However, for a business entity, cost escalation may be

a key consideration while setting up a business in Hong Kong (Econy Outlook for East Asian

1997).

28

E: ENVIROMENTAL

Hong Kong is located on China's south coast, 60 km (37 mi) east of Macau on the opposite side

of the Pearl River Delta. It is surrounded by the South China Sea on the east, south, and west,

and borders the Guangdong city of Shenzhen to the north over the Shenzhen River. The

territory's 1,104 km2 (426 sq mi) area consists of Hong Kong Island, the Kowloon Peninsula,

the New Territories, and over 200 offshore islands, of which the largest is Lantau Island. Of the

total area, 1,054 km2 (407 sq mi) is land and 50 km2 (19 sq mi) is inland water. Hong Kong

claims territorial waters to a distance of 3 nautical miles (5.6 km). Its land area makes Hong

Kong the 179th largest inhabited territory in the world.

As much of Hong Kong's terrain is hilly to mountainous with steep slopes, less than 25% of the

territory's landmass is developed, and about 40% of the remaining land area is reserved

as country parks and nature reserves. Most of the territory's development exists on Kowloon

peninsula, along the northern edge of Hong Kong Island, and in scattered settlements throughout

the New Territories. The highest elevation in the territory is at Tai Mo Shan, 957 meters

(3,140 ft) above sea level. Hong Kong's long and irregular coast provides it with many bays,

rivers and beaches.

On 18 September 2011, UNESCO listed the Hong Kong National Geopark as part of its Global

Geopark Network. Hong Kong Geopark is made up of eight Geo-Areas distributed across the Sai

KungVolcanic Rock Region and Northeast New Territories Sedimentary Rock Region.

29

P: POLITICAL AND LEGAL ASPECT

Hong Kong's legal system is completely independent from the legal system of mainland China.

In contrast to mainland China's civil law system, Hong Kong continues to follow the English

Common Law tradition established under British rule. The essence of English common law is

that it is made by judges sitting in courts, applying legal precedent (stare decisis) to the facts

before them. For example, murder is a common law crime rather than one established by an Act

of Parliament. Common law can be amended or repealed by Parliament; murder, for example,

now carries a mandatory life sentence rather than the death penalty. According to Article 92 of

the Basic Law, Hong Kong's courts may refer to decisions rendered by courts of other common

law jurisdictions as precedents, and judges from other common law jurisdictions, most

commonly England, Canada and Australia, are allowed to sit as non-permanent judges of

the Court of Final Appeal.

Structurally, the court system consists of the Court of Final Appeal, the High Court, which is

made up of the Court of Appeal and the Court of First Instance, and the District Court, which

includes the Family Court. Other adjudicative bodies include the Lands Tribunal,

the Magistrates' Courts, the Juvenile Court, the Coroner's Court, the Labor Tribunal, the Small

Claims Tribunal, and the Obscene Articles Tribunal. Justices of the Court of Final Appeal are

appointed by Hong Kong's Chief Executive. The Court of Final Appeal has the power of final

adjudication with respect to the law of Hong Kong as well as the power of final interpretation

over local laws including the power to strike down local ordinances on the grounds of

inconsistency with the Basic Law.

30

E: ETHICAL CULTURE

Hong Kong has a huge foreign population of expatriate business people, though 98% of the

population is Chinese. Although Hong Kong Chinese traditions and values have been influenced

by the Western presence, they possess many characteristics which are difficult for Westerners to

understand this cultural transmission which is called ‘collective programming of the mind’ by

Hofstede. Foreign business must try to grasp the moral values and traditional concepts which

shape the Chinese mentality if they want to operate successfully in Hong Kong. Hong Kong

Chinese are influenced by the Confucius teachings which emphasize obedience and respect for

superiors and parents, duty to family, loyalty to friends, humility, sincerity and courtesy. In

modern Hong Kong today, westernization and competing philosophies have diluted

Confucianism, but it is still manifested in the behavior of the people. In many Hong Kong

business enterprises, the boss is a ruler and a father or guardian to his subordinates. Workers

have a duty to obey the boss and work diligently to help company succeed. The boss in return

shall make sure that the workers get their basic needs. Age and rank are well respected in Hong

Kong. Younger people are expected to show respect to their elders in speech and manner. In

return the elder is expected to reward their juniors for work well done.

There is a strong bond among friends in Hong Kong. They establish mutual trust and respect

with each other to make each other successful in business. Favors and gifts must constantly be

reciprocated. Although Hong Kong people are courteous with their friends, they are rude or

uncaring to strangers. No apologies are given and none are expected from strangers. When doing

business in Hong Kong, one must remember that Hong Kong people have high “face value”.

Having face means having high status in one’s peers and it is a mark of personal dignity. They

are acutely sensitive to have and maintain face in all aspects to social and business life. It is

advisable not to insult an individual or criticize harshly in front of others. Just as face can be lost,

it can also be given by praising someone for good work in front of peers or superiors or by

thanking someone for doing a good job. Giving face earns respect and loyalty in Hong Kong.

You may consider allowing your opponent to win in a game like golf even if you are a better

player in order to save his or her face. This symbolically represents the norm of public behavior

in Hong Kong. The person whose face you save will not forget the favor and he will remain

indebted to you.

31

Chapter: 4 Steepel Analysis Of Jewellery Sector In Hong Kong

32

S- Social Factor Analysis:

In terms of materials, white metal will remain the mainstream, while there has been are mewed

interest and demand for colour stone jewellery. Demand for yellow gold is on a rise again, albeit

with a fashionable twist. Titanium is gaining popularity for its lightweight, strong nature and

non-sensitivity to human body. It is also worth-noting that, inrecent years, consumption of

diamond jewellery has increased rapidly, particularly in emerging economies such as China and

India where incomes are raising fast andconsumers' purchasing power is strong. Yet, lower-

priced items with more creative use of karat gold and alloys may also become more popular with

less affluent customers.

The number of younger consumers has increased over the past few years. They are fashion-

conscious and putting a great stress on the design element. In many cases, they are influenced by

the trends in clothing fashion, mainly through magazines, TVs or movies. In Asia, for example,

the biggest jewellery buyers are the rising numbers of women entering the workforce, according

to De Beers.

In terms of product trends, jewellery designs have been increasingly influenced by clothing

fashion. Consumers, especially women, are opting for more accessories like jewellery to express

their sense of style. While feminine, romantic pieces are expected tobe sought-after in the luxury

market, wear ability is getting important in the young girl market, and this reflects in the

increasing trend to wear jewellery with jeans in a mix and match fashion. Demand for male

jewellery is on a rise, as men are becoming more fashion-conscious.

The concept that “jewellery is feminine” is fading. Men have realized that jewellery can be

masculine. They begin to understand that fine jewellery is essential to a complete look, and

jewellery is becoming an integrated part of men's dressing. They may buy bracelets, rings and

pendant necklaces to suit their looks. They may also wear jewellery such as cufflinks and tiepins

to build up a smart look. Yet, articles of men jewellery are still quite limited, and thus the market

may be of huge potential.

Costume jewellery is making a return. Increasingly, more garment boutiques offer jewellery as

accessories complementing their new lines of fashion. Such development would contribute to an

33

increased demand for elegant and romantic diamonds, which are expected to top the list of

jewellery buyers, while semi-precious stones and coloured crystals targeting at the medium to

lower-end segment are likely to sell well.

T- Technological Factor:

Many manufacturers have applied computer-aided design and rapid prototyping techniques to

shorten the time cycle for product development. There are still large-scale jewellery

manufacturers who have introduced advanced, precise and automatic machinery to enhance

productivity and product varieties. In face of this growing trend, Hong Kong is now actively

developing into an international management centre for the development and promotion of

jewellery products, while the Pearl River Delta Region will develop into a technical and

manufacturing centre.

The industry has also benefited from the new opportunities provided by the implementation of

CEPA. The new arrangement allows some of the locally manufactured jewellery and imitation

jewellery products to be exempt from tariff. Besides, Hong Kong companies can also operate

fully-owned wholesale and retailing businesses in the Mainland. Therefore, local jewellery

manufacturers have benefited from this new policy and have enjoyed an increase in the market

share of the Mainland. This arrangement also helps to attract employers to re-invest their

resources in the local jewellery manufacturing industry, and to actively engage themselves in

technological innovations and the design of new products to meet the development of the

industry. Hence, the industry anticipates increases in the demand for relevant technical staff.

E- Environmental Factor:

Threats of New entrants is very low because not major competitors in Hong Kong

Bargaining power of supplier is high

Bargaining power of customer is low

Competition in Jewellery industry is lower and not intense

34

E- Economic Factor:

Economic Risk: Low

Hong Kong’s economic performances heavily dependent upon that of China, which is its main

export market. Longer term risk exists due to the fact that the currency is pegged to the U.S.

dollar and is thus subject to changes in U.S. monetary policy.

Largely dependent upon external demand conditions, Hong Kong’s economy will benefit from a

global recovery. Domestic demand remains strong and resilient. Hong Kong is also facing

heightened uncertainties regarding the U.S. economy, the Euro zone sovereign debt crisis and a

potential slowdown in China. Monetary conditions have remained loose and interest rates low

which has led to a rally in asset markets.

Financial System Risk: Very Low

The main insurance regulatory body in Hong Kong is the Office of the Commissioner of

Insurance (OCI). Hong Kong is a global financial centre, due in part to its favourable location for

foreign companies doing business with mainland China and other Asian locations; its openness

to capital flows; stable society; and effective and transparent legal system.

The banking sector is well-capitalized and regulated. Expansionary monetary policy and easy

credit contributed to high property prices in Hong Kong. The housing market has since softened

due, in part, to tightening.

P- Political Factor:

In the context of the free market and free enterprise economic framework, the Government

strives to provide a business-friendly environment for manufacturing and service industries. This

includes the maintenance of macro-economic stability, alow and simple tax regime, provision of

an excellent infrastructure, investment in education, training and human resources, and the

effective protection of individual and property rights through Hong Kong’s sound legal system.

To assist Hong Kong enterprises in enhancing their competitiveness in the Mainland, the

Government introduced the “Dedicated Fund on Branding, Upgrading and Domestic Sales” (the

BUD Fund) of $1 billion in June2012 to assist Hong Kong enterprises in developing brands,

upgrading and restructuring operations, and promoting domestic sales in the Mainland. The BUD

35

Fund comprises the Enterprise Support Programme and the Organisation Support Programme,

providing funding support to individual enterprises and non-profit-distributing organisations

respectively.

The Hong Kong Productivity Council acts as the Secretariat to assist in implementing the

Enterprise Support Programme whereas the Organisation Support Programme is implemented by

the TID.

Political risk comprises the stability of the government and society, the effectiveness of

international diplomatic relationships, the reliability and integrity of the legal system and of the

business infrastructure, the efficiency of the government bureaucracy and the appropriateness

and effectiveness of the government’s economic policies. Political Risk: Very Low

Though a Special Administrative Region (SAR) of China, Hong Kong’s private sector is

supported by an open economy, with flexible labour and product markets and an efficient

regulatory regime Mainland China has worked to portray a “hands-off” attitude in Hong Kong,

but can intervene in areas of national importance.

Hong Kong’s currency is pegged to the US dollar, which creates a complicated situation for

monetary policy in Hong Kong, particularly when economic performance diverges from that in

Mainland China andthe US.

Small government, low taxes and light regulation have made Hong Kong the number two ranked

country in the World Banks Ease of Doing Business ranking. Financial the Government has

played a significant role in the development of the jewellery industry by providing a favourable

business environment and various supporting measures, enabling members of the industry to

fully display their abilities, contributing to the expansion and growing maturity of jewellery

enterprises in Hong Kong.

L- Legislation Factor:

CEPA Provisions

Under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), the

mainland has given all products of Hong Kong origin, including jewellery, tariff-free treatment

starting from 1 January 2006. According to the stipulated procedures, products which have no

36

existing CEPA rules of origin can enjoy tariff-free treatment upon applications by local

manufacturers and upon the CEPA rule of origins being agreed and met. Non-Hong Kong made

jewellery products remain subject to tariff rates of as high as 35% when entering the mainland.

The promulgated rules of origin for jewellery to benefit from CEPA's tariff preference are

basically similar to the existing rules governing Hong Kong's exports of these products.

Generally speaking, for jewellery articles of precious metal, moulding, identified as the principal

process for the purpose of delineating their origin, is required to be carried out in Hong Kong. If

assembling is required, it must also be done in Hong Kong. For jewellery articles of pearls,

precious or semi-precious stones, both moulding and setting have to be done in Hong Kong.

37

Chapter: 5 Steeple Analysis Of Indian Jewellery Industry

38

Growth of Jewellery in Indian Market:

Till the early 1990s, the average Indian bought jewellery for investment rather than for

adornment. Jewellery forms an integral part of Indian tradition. A legacy passed from one

generation to another. The components of jewellery include not only traditional gold but also

diamond, platinum accompanied by a variety of precious and semi-precious stones.

The gems and jewellery industry in India is likely to reach Rs. 2.13lakh crore by 2015, apex

industry body ASSOCHAM said today. “Growing at a steady rate of 15 percent the domestic

gems and jewellery market is currently poised at Rs. 1.22 lakh crore,” said The Associated

Chambers of Commerce and Industry of India (ASSOCHAM) in a study titled ‘Current Trends

in Indian Gems and Jewellery Sector.’ ASSOCHAM sought feedback from around 1500 key

retailers, manufacturers, wholesalers throughout the country including branded players from all

verticals of the industry-gold, diamonds, silver and gemstones. The study was carried out

between Mach-June.

The growth in the industry is spurred by its rising constant demand as jewellery is considered a

trusted store of value in possession and a large number of Indian consumers approve of it as a

safe investment option, said majority of industry bigwigs adding that demand is expected to rise

further with onset of the annual festive season during August-October. Rising purchasing power,

lifestyle changes and overall increasing affordability among Indian middle-class are significant

reasons for higher jewellery demand,” said ASSOCHAM secretary general D.S.Rawat.

Introduction of hallmarking and certifications has transformed the buying preferences as more

youngsters can be seen buying jewellery as part of fashion accessory and are even parking their

access funds as part of investments in this sector, according to the ASSOCHAM study.

Availability of skilled artisans with expertise in jewellery making, designing and diamond

cutting, processing at competitive wages is another reason for growth in this sector. Conscious

marketing efforts are also a reason for rapid increase in jewellery demand in India. Number of

people going online to buy jewellery has been rising. Traditional jewelers in India are realizing

the importance of internet in the contemporary world and providing hassle free shopping

experience thereby luring customers from higher strata in large numbers.

39

“There are various online jewellery shops where customers can choose from a wide variety of

items and place an order from the luxury of their home and get it delivered at their doorstep, this

trend is catching up fast due to increasing internet penetration and availability of top-notch

broadband services,” said Mr. Rawat.

Demand in the sector is flowing from countries like the UAE, the United States, the European

Union, Russia, Latin America Hong Kong and China. Growth in gems and jewellery is mainly

driven by cut and polished diamonds market but China is emerging as a tough competitor as

increasing number of diamond processors from various countries including India are setting up

facilities in China considering factors like use of better technology, cheap and disciplined

workforce, surge in number of Chinese consumers, points out the ASSOCHAM study.

YESTERDAY TODAY

Non-branded Branded

Silver & Gold jewellery Gold & Diamond jewellery

Investment Investment + Fashion

Traditional design Fashionable & innovative design

Marriage & festival is peak Special occasion and gifts

40

SOCIO CULTURAL

The socio and cultural plays a huge role in the Jewellery market of India as jewellery is

considered to be a tradition from ancestral time and it is a necessity in many of its cultural

occasion.

It is considered as religious view to wear jewellery at every occasion like marriage, festival etc

TECHNOLOGICAL

India has become the leading manufacturer in terms of jewellery because of its advanced

technology and according to GPEC there is a rise of 18% to 407.36 lakhs carats for cut and

polished diamond.

Wide development of Technology in Diamond Industry

ECONOMIC:

Due to the global economic recession, India’s gems and jewellery export and import also got

affected it. The dynamic change in the exchange rates of pounds and INR affects the domestic

as well as international market .It affected the GDP of Indian economy and thus lessens the

consumer expenditure too affecting the sales. The Indian jewellery market is large and consist

of unbranded where branded jewellery accounts only for less than 2% per year and 300,000

consists of unorganized one. The dominant players in the field of jewellery manufacturing are

Italy, Hong Kong, China, Thailand, and United States. Leading player in the Indian jewellery is

Gili part of the Gitanjali Gems Limited and Tansihq, Reliance Jewel, Joyalukkas.

A number of issues relating to gold policy are reviewed by the Reserve Bank of India from time

to time. In 1978, in the context of gold auctions, there were consultations by the Reserve Bank

of India and the issues posed related to measures to reduce the demand for gold, the stance on

import of gold and related matters. It is interesting to recall the principal suggestions considered

at that time to get a flavor of our mind-set at that time.

To reduce the demand for gold suggestions made were

(a) Fixation of quantitative ceiling on holdings per family/per individual;

41

(b) Reduction of the gold content of jewellery to say 14 cts. purity;

(c) Creation of alternative assets with attractive yields and the introduction of gold bond

scheme/gold securities;

(d) Imposition of a tax on the jewellery component of wealth at a higher rate; and

(e) Administrative measures including very strong and quickly effective penal measures for tax

evasion where such evasion exceeds a specified penal limit.

As regards import of gold, five options were considered

(a) Import of gold as a feasible socio-economic policy measure;

(b) Import of gold on a limited scale to meet specific purposes;

(c) Import of gold as a last resort;

(d) Import of gold as a necessary evil; and

(e) No import of gold.

ENVIRONMENT:

Our position in the global gold economy in terms of broad magnitudes can be highlighted with a

few facts.

First, the total gold stock in India is estimated at 9,016 tones as against the world

Stock of 128800 tons in 1994 giving a share of 7.0% to India this should be

Viewed against our share in land area at 2.4 per cent, in population at 16.4 per cent and in GDP

at 1.2%

Mining and production of gold in India is negligible, now placed around 2 tones as against a total

world production of about 2,272 tone s in 1995. During 1990-95, our share in global gold

demand is placed at about 402 Tones (16.4 per cent) a year, including imports into India this

should be viewed against our share of 0.6 per cent in world trade. On the other hand, India

exported about 23 Tons in 1995 accounting for a negligible part of world trade – though there

was a brief period of illegal exports in the early 'seventies and substantial legal exports in the

pre-independence era.

42

POLITICAL

The Indian Government has taken up measures to lower import duty of platinum and gems.

Colored stones are exempted from tax.

There are plans of Indian Government to establish “Diamond Bourses”. Bullion imports and

exports were banned under the Foreign Exchange Regulation Act, 1947. Control over gold

production was assumed by the Mysore Government in November 1956. The official gold stocks

of the RBI were revalued in the same year. The proportional reserve system was replaced by the

minimum reserve system, for purposes of note issue. In a major effort to mobilize the vast gold

reserves in the country, an issue of 15-year

Gold Bonds at 6.5 per cent was made in November 1962. The bonds were issued in exchange for

gold, gold coin, and gold ornaments. Subscriptions to these bonds totaled 16.30 Tones. The issue

of gold bonds was accompanied by exhortations to the public to refrain from buying gold and to

surrender their holdings to the Government. The RBI advised commercial banks to consider

recalling loans made against the security of gold. Forward trading in gold was banned in

November 1962.

A second attempt to garner gold was made in March, 1965 when a new series of 7 per cent Gold

Bonds 1980 was issued. Opportunity was given to holders of unaccounted money to convert

them into these bonds. The quantity raised was 6.1 Tones. A third series of gold bonds

designated as National Defense Gold Bonds, 1980 at 6.5 per cent was issued in October 1965.

Unlike the earlier two issues, which were repayable in Rupees (the value of gold being calculated

at international prices) these bonds were redeemable in gold of standard purity at maturity. The

quantity raised was 13.7 Tones. Strict gold control remained in force till November 1966, when

the rules were amended, lifting the ban on the manufacture of ornaments of more than 14 carat

purity. The amendments also placed ceilings on individual holdings and extended control over

refineries and dealers. In September 1968, the Gold (Control) Act 1968 was passed establishing

the scheme of gold control on a permanent statutory footing. Except for some minor

modifications incorporated in the Act in 1969, 1972 and 1973, the structure of the Act did not

undergo any change.

43

Chapter: 6 Comparisons Between India and Hong Kong

44

POINT OF DIFFERENTIATION INDIA HONG KONG

RELIGION : Hinduism is the leading religion

followed by population in India

along with vast difference in

religious diversity followed by

people in various parts of India.

Theravada Buddhism is the official

religion of Cambodia, 95% of the

population of Cambodia is

following Buddhism.

LANGUAGE : In India HINDI is the national

language and as there is diversity

in the people of India variety of

language is being spoken by the

people like Marathi, Bangle,

Tamil, Punjab. At present Hindi

and English is being used

primarily for all the purposes in

India.

In Hong Kong Chinese and English

are the official languages. But,

English is widely used within the

Governmentand also by the legal,

professional and business sectors.

EDUCATIONAL LEVEL

According to the 2011 survey

holds the National Literacy Rate

to be around 74.07%, Female

literacy was of 65% whereas the

male literacy was 82%.Within

the Indian states, Kerala has

shown the highest literacy rates

of 93% whereas Bihar averaged

63.8% literacy.

The 2011 Hong Kong census

estimated that 93.5% of the

population was literate (96.9% of

men and 86.9% of women). Male

youth age (15–24 years) have a

literacy rate of 89% compared to

86% for females.

HUMAN DEVLOPMENT INDEX

136th out of 186 13 Out of 186

PER CAPITAL INCOME(ANNUAL)

3876$ $51946

45

TECHNOLOGY FACTOR

PARTICULARS INDIA HONG KONG

INTERNET

USERS

India has added 69 million Internet

users during 2008-2011 and now has

121 million Internet users 

Hong Kong is having too less as

compare to India but most of people

in Hong Kong are sing internet

DEVELOPMEN

T

Export of Precious Jewellery has

been increased by 101% in 2012

Export of Precious Jewellery has

been increased by 14% in 2012

46

ENVIRONMENTAL:

POINT OF

DIFFERENCE

HONG KONG INDIA

KEY ACT’S

RELATED TO

ENVIRONMENT

Key actors in Cambodia related to

environment, natural resources and

climate change are: Sub-Decree on

Solid Waste Management (1999),

Sub-Decree on Water Pollution

Control (1999), Sub-Decree on Air

Pollution and Noise Disturbance

Control (2000), The Ministry of

Environment (MoE) and its

Cambodia Climate Change Office

(CCCO); Ministry of Agriculture,

Forestry and Fisheries (MAFF),

Ministry of Water Resources and

Meteorology (MOWRAM), and

Ministry of Industry, Mines and

Energy (MIME). The National

Climate Change Committee

(NCCC) is a cross-ministerial

policy making body to address

climate change issues in

Cambodia. Commune councils

have authority to protect the

environment and natural resources

within their commune boundaries,

although management decisions on

forestry issues are excluded from

their mandate unless granted

Environmental regulatory is in India

represented at the central level by the

Ministry of Environment and Forests

(MoEF) and the Central Pollution

Board Control (CPCB), and at the

state level by State departments of

environment and forests, and State

Pollution Control Boards (SPCBs).

The main environmental management

instruments include: (i) an

Environmental Impact Assessment

(EIA) system to regulate the sitting

and approval of large projects; (ii)

Forestry Clearances that require the

project proponent to deposit the

compensatory afforestation payment

and (iii) the Consent to Establish

(CTE) and Consent to Operate (CTO)

that regulate the establishment and

operation of facilities at the State

level. Other instruments include taxes,

fees, zoning, and information

disclosure and polluter liability.

47

specific authority from the RGC.

POSITIVE

IMPACTS OF

JEWELLERY

RELATED TO

ENVIRONMENT

Increased Direct Financial

Contributions, Contributions to

Government Revenues, Improved

Environmental Management and

Planning, Raising Environmental

Awareness.

Contributions to Government

Revenues, Increased Direct Financial

Contributions, Raising Environmental

Awareness, Improved Environmental

Management and Planning.

NEGATIVE

IMPACTS OF

JEWELLERY

RELATED TO

ENVIRONMENT

De-forestation, Over exploitation

of Cambodia’s aquatic resources,

Siltation, Indiscriminate use of

pesticides, Waste, Environmental

problems along the Mekong River.

Water resources, Local resources,

Land degradation, Air and Noise

Pollution, Solid waste and littering,

Sewage

48

DEMOGRAPHIC FACTOR:

FACTORS INDIA HONG KONG

AGE STRUCTURE 0-14 years –

29.3%(187,386,162 Males,

165,345,284 Females)

15-24years -

18.2%(116,019,042

Males,103,660,354 Females)

25-54years –

40.2%(249,017,538 Males

235,042,251 Females)

55-64years – 6.8%(41,035,270

Males, 40,449,880 Females)

65-and above years –

5.6%(31,892,823

Males,35,225,003females)

0-14 years-11.4% (male

427,250/female 390,856)

15-24 years-11% (male

406,114/female 380,304)

25-54 years- 49.2% (male

1,650,509/female 1,867,907)

55-64 years- 14.5% (male

516,493/female 517,958)

65 years and over- 13.9% (male

467,199/female 528,929) (2012 est.)

MEDIAN AGE Total – 26.5 Years

Male -25.9 Years

Female – 27.2 Years

Total –43.9 years

Male – 43.3 years

Female –44.4 years

POPULATION

GROWTH RATE

1.312% 0.12%

BIRTH RATE 20.6 births/1,000 population  7.54 births/1,000 population

DEATH RATE 7.43 deaths/1000 population 7.23 deaths/1,000 population

NET-MIGRATION

RATE

-0.05 migrant(s)/1,000

population

3.9 migrant(s)/1,000 population

URBANIZATION Urban Population – 30% of

total population

Rate of urbanization – 2.4%

annually

Urban population: 100% of total

population

rate of urbanization: 0.9% annual

rate of change

MAJOR CITY NEW DELHI (capital) 21.72 Kow loon 2.18 Million

49

POPULATION million; Mumbai 19.695

million; Kolkata 15.294

million; Chennai 7.416

million; Bangalore 7.079

million

Victoria 0.92 Million

LIFE

ANTICIPATION

Total – 67.14 Yrs

Male – 66.08Yrs

Female – 68.33Yrs

Total – 63.04Yrs

Male – 60.66Yrs

Female – 65.53 yrs

NO. OF TOURISTS 62, 95,000 Tourists visited

India which had grown by

more than 6%.

48.6 million

50

POLITICAL FACTOR

FACTORS INDIA HONG KONG

POLITICAL

PARTIES

1. U.P.A(United progressive

alliances

2. B.J.P(BhartiyaJanta party)

1.

GOVERNMENTAL

POLICIES

In India for every sector of the

economy policies are well-framed

and timely modified by the

government)

INTERNATIONAL

RELATIONS

Countries with which international

relation exists :

1. U.S.A

2. U.K

3. Pakistan

4. Russia

5. China

6. Australia

Major membership

(International Org.)

1. World trade organization

2. International monetary funds

3. East-Asian Summit

4. Asian development bank

5. World bank

6. BRICS

7. SAARC

8. G-20

9. IBSA Dialogue firm

10. BIMSTEC

Countries with which

international relation exists :

1.U.S.A

2.U.K

3. China

4. Russia

Major membership

(International Org.)

1. World trade organization

2. International monetary funds

3. East-Asian Summit

4. Asian development bank

5. World bank

6. Asia-Pacific Economic

Cooperation

7. Pacific Economic

Cooperation Council

8. United Nations Economic

and Social Commission for

Asia and the Pacific

9. United Nations Conference

51

11. U.N.Security council

12. G-4 nations

on Trade and Development.

10. Organization for

Economic Cooperation and

Development

52

Legal Factor

FACTOR INDIA HONG KONGCONSUMER PROTECTION

In India Consumer Protection Act of

1986 is the law governing consumer

Protection. Under this law, Separate

Consumer tribunals have been set up

throughout India in each and every

district in which a consumer

[complaint can be filed by both the

consumer of a goods as well as of the

services] can file his complaint on a

simple paper without paying any court

fees and his complaint will be decided

by the Presiding Officer of the District

Level. Appeal could be filed to the

State Consumer Disputes Redressal

Commissions and after that to

the National Consumer Disputes

Redressal Commission (NCDRC). The

procedures in these tribunals are

relatively less formal and more people

friendly and they also take less time to

decide upon a consumer disputewhen

compared to the years long time taken

by the traditional Indian Judiciary. In

recent years, many effective judgment

have been passed by some state and

National Consumer Forums.

HKTDC: Hong Kong trade

development Council

CEPA:

Closer Economic Partnership

Agreement

53

JEWELLERY INDUSTRY LAWS

Certification of Gems and Jewellery is Mendatory

CEPA Provisions

54

Chapter: 7 Recent Trends Between India And Hong Kong in jewellery

55

Gems and Jewelry (with special reference to Diamond exports)

Industry and trade overview

Gems and jewelry has been an important industry for the Indian economy. It is one of the fastest

growing industries and a leading earner of foreign exchange for India. The gems and jewelry

sector covers a wide range of items which include diamonds, precious and semi-precious stones,

in addition to gold, silver, studded and costume jewelry. The gems and jewelry industry in India

is mostly concentrated in the unorganized sector and employs around 2 million workers.

An important feature of this industry is that it contributes a large share to India’s total exports as

well as to the country’s imports (averaging over 9 percent of total imports since 1997). The main

component of India’s gems and jewelry export is cut and polished diamonds. Rough and uncut

diamonds are imported and processed in India and finally exported in the form of diamond

jewelry for final consumption. It is this feature that makes the industry highly import-intensive in

nature.

The importance of this industry for Indian exports is evident. Its contribution to Indian exports

has steadily grown since 1975 and is responsible for nearly 15 percent of India’s

total exports since 1986. As a commodity, it has the (single) highest share in Indian merchandise

exports and is therefore, one of the most significant industries for India.

The diamond segment contributes a major share of nearly 70 percent of the total (gems and

jewelry) export and thus the remainder of the analysis focuses on the performance of Indian

diamond exports. However, the latter’s share has declined since 2008, in part, due to the

economic meltdown which reduced the import demand from USA and other trading partners of

India.

56

Gems and Jewelry share (%) in India’s total exports

Major producers of diamonds in the world are Southern Africa, Canada, Australia and Russia.

Around 10 percent of the world’s total diamonds belong to the gemstones category, which are

processed and set in diamond jewelry. A unique feature of diamonds is that, unlike gold, silver or

platinum, they do not have an internationally set standard price. The price is determined based of

physical attributes (such as cut, color, clarity and carat (weight)). Like other forms of (valuable)

jewelry, diamonds are a luxury item and consequently have a highly elastic demand in the

market. In this industry, India has a comparative advantage in labour-intensive activities like

gem cutting and polishing. Therefore, Indian companies operate at a beneficial level in the value

chain where they import rough diamonds, which are processed and exported for final

consumption as diamond jewelry. The Indian Gems and Jewelry industry plays an important role

25 in the value chain as it contributes 60 percent to the value share and 85 percent to the volume

share.

Major exporters of Diamonds and their share in world exports (%)2000 2005 2009

Exporting country market share Exporting country market share Exporting country market shareBelgium 25.9% Belgium 18.7% India 20.1%Israel 19.3% Israel 18.5% Israel 14.0%India 13.4% India 13.9% Belgium 13.4%UK 13.1% UK 10.7% USA 12.1%USA 8.5% USA 10.0% Hong Kong 9.8%Botswana 4.6% Hong Kong 5.2% UAE 9.3%Hong Kong 3.8% Botswana 3.8% UK 6.7%South Africa 3.5% UAE 3.6% Botswana 2.6%Switzerland 1.9% South Africa 3.1% Canada 2.1%China 1.1% Singapore 2.0% China 1.8%

57

25.00%to

tal e

xpor

ts(%

)

20.00%

15.00%

10.00%

InSh

are

5.00%

0.00%

Reveals the change in market share since 2000. It is seen that India’s market share remained

unchanged and well below Israel and Belgium’s share between 2000 and 2005. In 2009,

however, India’s share rose considerably above that of Belgium and Israel, which could partly be

due to the stronger impact of the sub-prime crisis of 2008 on the demand for large sized

diamonds, which resulted in a decline in market share for Israel and Belgium.

Indian exports of gems and jewelry (including diamonds) have performed well in the US market.

The annual growth in India’s gems and jewelry exports to the US has more often been higher

than its competitors.

Main World Importers of Diamonds

2000 2005 2009Importing Country Market share Importing Country Market share Importing Country Market shareUSA 22.8% USA 18.7% India 16.8%Belgium 14.1% India 11.8% USA 14.5%UK 10.7% Belgium 11.2% Hong Kong 10.2%India 8.2% UK 8.4% UAE 10.1%Israel 7.5% Hong Kong 7.7% Belgium 6.3%Hong Kong 6.3% Israel 6.9% UK 5.9%Switzerland 4.7% UAE 6.1% Switzerland 4.2%Japan 4.7% Switzerland 3.4% Germany 3.5%Italy 3.4% Japan 3.4% Israel 3.2%Germany 2.6% Germany 2.5% Australia 2.7%

Reveals that India is clearly the key partner for Hong Kong’s diamonds imports and over 44

percent of all diamond imports have been sourced by Hong Kong since 2000. India also has a

dominant position in gems and jewelry exports, which account for over 44 percent of Hong

Kong’s total imports for the sector.

58

Market share of main trading partners in Hong Kong’s Diamonds and Gems and Jewelry

Market share in Diamond Imports Market share in Gems and Jewelry Imports

Belgium Israel India Belgium Israel India2000 11.3% 16.7% 47.5% 10.2% 15.0% 43.4%2005 12.3% 15.7% 44.1% 11.4% 14.5% 41.1%2007 13.5% 15.3% 44.6% 12.5% 14.2% 41.8%2009 14.0% 11.9% 47.6% 13.2% 11.2% 45.1%

Other than the US and Hong Kong, Indian gems and jewelry are also exported to China. Chinese

imports of cut and polished diamonds have increased by 87 percent between 2000 and 2009 and

India is the largest exporter to this market with a share of 2 percent. A few Indian companies

have also planned to begin retailing operations in collaboration with manufacturing units in

China. India is also the leading exporter to EU countries, though EU imports of gems and

jewelry from India have fluctuated over the years.

Competitiveness of Gems and Jewelry exports

The RCA for India’s gems and jewelry exports has remained considerably above unity indicating that this is a competitive export item for India. This can be attributed partially to India’s growing exports of large-sized diamonds to markets such as the US. Additionally, introduction of the Diamond Dollar Account and Green card for exporters of polished diamonds have facilitated trade competitiveness.

RCA for India’s Gems and Jewelry exports (to the World)

25.000

20.000

15.000

RCA

10.000

5.000

0.000

1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

A comparison of India’s RCA with its competitors suggests that Israel and Belgium’s exports are

59

more competitive in the US market, as they contribute a larger share to US imports of gems and

jewelry. However, in the case of gems and jewelry exports to Hong Kong, India is more

competitive than Israel or Belgium, owing to the fact that over 40 percent of Hong Kong’s gems

and jewelry imports are sourced from India.

EXECUTIVE SUMMARY

60

This project is on “Jewellery Industry in Hong Kong.”As a part of our MBA Curriculum, we

have prepared a Global Country Report on Hong Kong. Where we have searched for various

business opportunities after deep understanding and doing analysis of various factor affecting

jewellery business in Hong Kong . Hong Kong is strategically located at the mouth of the Pearl

River Delta in Southern China. It is within a few hours' flight from all major cities in East and

Southeast Asia, including Beijing, Shanghai, Tokyo, Seoul and Singapore.

Hong Kong has been beset by a lack of suitable building land. The New Territories, largely

mountain country, contained limited areas of flat land around the older settlements and their

development was largely hindered by the Kowloon foothills and by lack of major public utility

services

Hong Kong is often described as a city where East meets West. This is reflected in all aspects of

the culture, but especially in its shopping, nightlife, and dining. A popular destination for

shoppers from around the world, Hong Kong has everything to offer from the latest European

fashion to traditional Chinese wares. The city's cosmopolitan flavor can also be seen in the wide

variety of cuisines available. While different varieties of Chinese selections, especially seafood,

are most popular, there also many European, American, Japanese, Korean, and other restaurants.

Hong Kong enjoys a high degree of religious freedom. The majority of Hong Kong's population

practices ancestor worship due to the strong Confucian influence. Hong Kong's religious beliefs

are tied to the region's early role as a fishing community. Tin Hau, the protector of seafarers, has

been honored with several temples throughout Hong Kong for at least 300 years. Hong Kongers,

especially elder generations, go to Taoist or Buddhist temples to appease the deities and, usually,

to ask for compassion or good fortune.

Hong Kong is a place of kaleidoscopic variety. Hong Kong people enjoy the freedom of religion

under the Basic Law. Then there are as many types of international cuisines as are the number of

the ethnic groups in Hong Kong.

A founding member of the World Trade Organization (WTO), Hong Kong is firmly committed

to free and open trade. There is no barrier on trade. Hong Kong does not charge tariff on

importation or exportation of goods. Import and export licensing is also kept to a minimum.

Hong Kong enjoys a robust and stable financial regime, exemplifying the vitality and dynamism

of an open and free economy that has the prowess of prospering in an ever-changing global

political economy. In particular, the Hong Kong dollar, which is 100% backed by US dollars, has

61

demonstrated remarkable stability since the introduction of the linked exchange rate system in

the early 1980's.

Hong Kong is one of the most densely populated areas in the world with an overall density of

some 6,300 people per square kilometer.

Hong Kong is a major international financial centre and a leading world trading entity. Hong

Kong is amongst the freest economies in the world and is home to some of the region's most

important corporate headquarters. In 2012, Hong Kong topped the World Economic Forum's

Financial Development Index.

In GDP (PPP terms) it stands as the world’s 36th-largest economy. Hong Kong’s economic

integration with mainland China developed through the 1980s with the establishment of China’s

first Special Economic Zone in Shenzhen, just across the border, transforming a fishing village

into a gleaming metropolis of over 10 million people.

The financial services sector is expected to grow further, boosted by China’s efforts to broaden

the international use of the Renminbi. Australian service providers are actively engaged in

banking, transport and logistics, employment consultancies, engineering, construction, aviation,

architecture, accountancy, legal services, insurance, tourism and retailing.

Following the global financial crisis, export-dependent Hong Kong was particularly affected by

the slowdown in China and the decrease in demand from key re-exports markets in the United

States and Europe, resulting in negative 2.5 per cent growth in 2009.

Hong Kong's climate is subtropical and prone to monsoons. It is cool and dry in the wintertime,

and is hot and rainy from spring through summer. It is warm, sunny, and dry in autumn. Hong

Kong occasionally has typhoons. The body of water between Hong Kong Island and Kowloon

Peninsula is Victoria Harbour, one of the deepest maritime ports in the world.

Hong Kong's Trade Policy Hong Kong is a free port which thrives on free trade. Its open door

policy has enabled it to become one of the world's largest trading economies and an international

financial and commercial centre serving the Asia-Pacific region and the Mainland of China.

The free trade policy means Hong Kong maintains no barriers on trade. Thus, Hong Kong does

not charge tariff on importation or exportation of goods. Import and export licensing is also kept

to a minimum. Licensing is only imposed when there is a genuine need to fulfill obligations

62

undertaken by Hong Kong to our trading partners, or to meet public health, safety or internal

security needs.

Generally speaking, Hong Kong’s jewellery business is quite good and the standards are

comparable to some major European and Asian cities. Both private and public systems are

available.

OBJECTIVE

The STEEPLED Analysis Of Jewellery in HONG KONG Includes the following factors: Social,

Technological, Economical, Environmental, Political, Legal, Ethical, Demographic.

The STEEPLED Analysis Of Jewellery in INDIA Includes the following factors: Social,

Technological, Economical, Environmental, Political, Legal, Ethical, Demographic.

The COMPARISON between India and Hong Kong in Jewellery sector.

Environmental analysis between India and Hong kong in business trends.

Finding opportunity in jewellery sector in Hong Kong.

Finding opportunity in jewellery sector in India.

63