Industry Observation: New Regulations Emerge: Gem & Jewelry Industry Enters 'Strong Regulation' Era, Reshaping Consumer Confidence and Market Landscape
Since 2023, the global gem and jewelry industry has been undergoing a profound transformation, particularly at the policy and regulatory level. From China to the European Union and the United States, governments and industry organizations have successively introduced new regulations aimed at enhancing transparency, combating illegal trade, protecting consumer rights, and promoting sustainable development in the industry. This wave of 'strong regulation' is undoubtedly reshaping the market landscape and imposing higher demands on practitioners.
China: Multi-Departmental Coordination Accelerates Standardization
In the Chinese market, multiple departments, including the State Administration for Market Regulation (SAMR) and the Ministry of Commerce, have jointly intensified supervision over the gem and jewelry industry. In March 2023, SAMR released the 'Administrative Measures for Gemstone Identification and Appraisal (Draft for Comment)', which for the first time clarified qualification requirements and accountability mechanisms for appraisal institutions and appraisers. According to statistics from the Gem & Jewelry Trade Association of China (GAC), by the end of 2023, 12 new gem and jewelry appraisal institutions nationwide had obtained CMA/CNAS qualifications, and the certification rate for testing personnel increased to over 95%, effectively curbing malpractices such as false appraisals and exaggerated promotions.
Furthermore, in response to irregularities in live-streaming e-commerce, the Ministry of Commerce issued the 'Code of Conduct for Online Live-streaming Marketing (Trial)' in July 2023, explicitly requiring live-streamed goods to clearly state material, origin, weight, and other key information, and prohibiting practices such as 'no-reserve auctions' and 'false flash sales'. According to data from Taobao Live, after the implementation of the new regulations, the return rate for jewelry categories decreased by 15% month-on-month, and consumer complaints decreased by 20% year-on-year, indicating the positive role of the policy in purifying the market environment. Professor Li Ming, Director of the Peking University Gemstone Appraisal Center, pointed out: 'The strong regulation by the Chinese government is not only to protect consumers but also to guide the industry towards branding, standardization, and internationalization, enhancing the credibility of 'Made in China'.'
International Perspective: Supply Chain Transparency and Sustainability in Focus
Globally, the demand for supply chain transparency is becoming increasingly stringent. In October 2023, the European Commission adopted the 'Corporate Sustainability Due Diligence Directive' (CSDDD), which explicitly requires several high-risk industries, including jewelry, to assess and manage human rights and environmental risks in their supply chains. This means that gems and jewelry imported into the EU market will face stricter 'traceability' scrutiny. For instance, the Antwerp World Diamond Centre (AWDC) in Belgium has begun implementing a blockchain-based diamond traceability system to ensure the legal and compliant origin of every diamond.
In the United States, the Federal Trade Commission (FTC) also updated its 'Guides for the Jewelry, Precious Metals, and Pewter Industries', providing more precise definitions for terms such as 'natural,' 'synthetic,' and 'laboratory-grown' to prevent consumer confusion. For example, laboratory-grown diamonds must be clearly labeled as non-natural. A survey by the Gemological Institute of America (GIA) showed that 80% of consumers indicated that clearer product information would significantly increase their willingness to purchase.
Impact and Outlook: Challenges and Opportunities Coexist
The 'strong regulation' era brings dual impacts to the gem and jewelry industry. On one hand, increased compliance costs pose challenges for small and medium-sized enterprises, potentially leading to the elimination of some non-compliant businesses. On the other hand, tightening policies also create new development opportunities for businesses that prioritize quality and integrity. Consumer trust in brands will become a core competitive advantage.
Wang Qiang, a senior researcher at the Shanghai Gold Exchange, stated: 'The future gem and jewelry market will favor brands that can provide complete traceability information, possess authoritative testing certificates, and actively practice sustainable development. Industry concentration is expected to further increase, and technological empowerment, such as blockchain and AI appraisal, will become key for enterprises to enhance competitiveness.'
Overall, the emergence of new regulations is an inevitable path for the industry's maturity. While short-term pains may accompany it, in the long run, it will help build a fairer, more transparent, and healthier gem and jewelry market, ultimately benefiting all consumers and responsible practitioners.