Industry Observation
In 2024, the global jewelry and jade industry is undergoing a profound policy transformation. From source mining to terminal sales, a series of new regulations have been intensively introduced, aiming to standardize market order, enhance product quality, combat illegal transactions, and promote sustainable industry development. As one of the world's largest jade consumption markets, China has been particularly active in policy formulation, with far-reaching impacts.
China: Standardization and Transparency as the Main Theme
The Gem & Jewelry Trade Association of China (GAC), in conjunction with the State Administration for Market Regulation, released the 'Jewelry and Jade Identification and Naming Standards (2024 Edition)', which officially came into effect on March 1st this year. This standard for the first time clearly defined 'Jadeite A-grade' and put forward stricter requirements for the labeling of treated jade. According to GAC statistics, in the first quarter after the new standard's implementation, consumer complaints due to non-standard labeling decreased by 15% month-on-month.
“This initiative has effectively curbed the behavior of some businesses selling inferior goods as superior ones, enhancing consumer confidence,” said Professor Li Ming, Director of Peking University's Gemstone Identification Center, in an interview with 'Yujian AI'. “It is expected that the overall integrity of the industry will increase by more than 20% in the next two years.”
Concurrently, in response to false advertising and price fraud in the live e-commerce sector, the National Radio and Television Administration and the Ministry of Commerce jointly issued the 'Interim Provisions on Regulating Online Live Marketing Activities', focusing on regulating live sales of jewelry and jade products. For example, it stipulates that live streams must display authoritative appraisal certificates and requires streamers to possess corresponding professional knowledge. According to data from a major e-commerce platform, after the release of the new regulations, the return rate for jewelry live streams decreased by 8%, and the complaint rate dropped by 10%.
International: Increased Pressure on ESG and Supply Chain Compliance
At the international level, the advancement of the EU's Corporate Sustainability Due Diligence Directive (CSDDD) has had a significant impact on the global jewelry supply chain. This directive requires companies to conduct due diligence on human rights and environmental risks within their supply chains, covering every link from mining to retail. For instance, major jewelry brands like Cartier and Tiffany & Co. have begun to conduct stricter ESG (Environmental, Social, and Governance) audits on their suppliers.
“This is not just a compliance issue, but also the cornerstone of brand reputation,” emphasized Gaetano Cavalieri, President of the World Jewellery Confederation (CIBJO), at a recent industry summit. “Consumers are increasingly concerned about whether the origin and production process of products meet ethical standards.”
Furthermore, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctions on Russian diamonds have prompted global diamond traders to re-evaluate their supply chains, seeking more transparent and traceable channels. India, as the world's largest diamond processing center, has seen its relevant enterprises actively adapt to these changes, investing in blockchain technology to ensure the compliance of diamond origins.
Market Outlook: Challenges and Opportunities Coexist
Policy tightening undoubtedly increases compliance costs for jewelry enterprises, especially for small and medium-sized businesses, which face immense pressure for transformation and upgrading. However, in the long run, these policies will help purify the market environment and enhance the overall competitiveness of the industry.
It is expected that in the future, jewelry and jade products with high transparency, traceability, and compliance with ESG standards will be more favored by the market. Emerging technologies such as blockchain will become more widespread in anti-counterfeiting and traceability applications. Simultaneously, consumers' pursuit of 'cultural value' and 'emotional attributes' will further deepen, bringing new growth points for jade products with unique designs and cultural connotations.
“Challenges and opportunities coexist, and the key lies in whether enterprises can actively embrace change and transform compliance requirements into core competitiveness,” said Wang Fang, Deputy Director of the Shanghai Diamond Exchange. “Those who can provide high-quality, responsible products will stand out in the new round of market competition.”
Overall, the policy direction in 2024 signals that the jewelry and jade industry is moving towards a more standardized, transparent, and sustainable future. Enterprises must keep pace with policy changes to navigate this transformation steadily and seize new development opportunities.