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Business / Industries

Bengbu's jade industry on rocky road

By Zhu Lixin (China Daily) Updated: 2015-02-11 07:55

Bengbu's jade industry on rocky road

A jade artifact displays at an exhibition in Shanghai, Sept 18, 2014. [Photo/IC]

Although he considered his connection with the luxury sector to be minimal, Yang was convinced that the cleanup campaign has affected his business, too.

That opinion was seconded by Xu Yi, a professor at the University of Science and Technology of China, in Hefei, capital of Anhui province. "Large decorative articles are not the only type of jade products to have seen bleak sales recently. It's much the same for small personal jade ornaments," said Xu, a member of the university's school of management who began researching the luxury industry in the 1990s.

Xu also works as a consultant for Anhui Baoruiyuan Jewelry Co, the largest jewelry brand in Anhui, which mainly produces items "for regular, individual consumers", according to Zhang Yali, the CEO.

Despite the downturn, Zhang remains buoyant. "Although the industry faces a lot of difficulties and challenges, the potential market remains large, so I am quietly confident about the future growth of my business," he said.

Xu found it hard to share Zhang's upbeat attitude. "Traditionally, Chinese people like to give each other gifts on happy occasions, such as a wedding or work promotion. Sometimes, the presents are just given in the hope they'll bring good luck," he said, adding that less than 50 percent of small jade ornaments sold are worn by the purchasers themselves.

"The anti-graft campaign has made many people reluctant to celebrate happy events, let alone give and receive presents. The change has not only affected officials, but also entrepreneurs and the general public," he said.

Li, of the Bengbu Jade Society, said: "The campaign has had a widespread and profound influence on many aspects of society, but we can't really prove that most of the jade items were bought by officials."

In his opinion, the parlous state of the global economy and the slowdown in China have affected the industry just as much as the anti-graft campaign because people are now far more cautious with their money.

Xu said: "When people have enough money, they might buy jade for personal use, but in addition to their decorative function, these articles also have great potential to appreciate in value."

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