Fresh water pearls in Hong Kong or Guangzhou (Canton)

[pearltime]

I will be going to Hong Kong in the next few months by way of Tokyo. Are the Akoya pearls in Japan too expensive? I would stop there if it was worth it. Can anyone tell me of a reputable supplier of pearls ( for a business) in Hong Kong or near Hong Kong . How about Guangzhou (Canton)? I am primarily interested in large fresh water pearls. I don't know that much about pearls. Thanks!

 

[pearltime]

Is it possible to buy pearls at some of the pearl markets in China and sell them for 3 times what a person paid for them? Is it possible for a new comer to buy from a farmer?

 

[jshepherd]

I would suggest skipping Tokyo. It is difficult to find good prices on pearls (wholesale) unless you are in Kobe.
Regarding dealers in Hong Kong, this is a huge trading hub for freshwater pearls. Just make your way to Tsim Sha Tsui and spend a day roaming streets like Kimberly, and nearly all the roads between Nathan and Chatham. Nearly every building has at least one pearl company. Do not go into any of the store fronts as these are not wholesale. You will need a business card to get into any of the companies, but each of them has mounds of freshwater pearls stacked to the ceilings. HK is not a good place, however, for Akoya pearls. The only Chinese Akoya pearls I have seen in HK are similar in quality to those you find at the Beijing or Shanghai pearl market.

I guess it is possible for a new-comer to buy from a pearl farmer, but I am not sure that would be the way for you to go. The expense and difficulty of getting to an actual farmer or a farm factory would just not be worth it unless you plan on making a very large purchase.

I would also suggest doing a lot of research on the product itself before you get there. It is possible to sell pearls with a 300% markup - especially in the lower-end goods. A strand of 'ok' freshwater pearls in the 8mm range can be garnered for about $10 per strand.

 

[pearltime]

Thank-you so much for your response. Your pearls are breathtaking ,by the way. I do have free or discounted air passage but I don't think a $20 profit per item would be worth the effort. I could purchase costume jewelry from the merchandize mart and make the same amount. Perhaps Canton, or Zhejiang would be the way to go. Maybe I can find the pearl factories .I have been researching for a while and I am amazed at the amount of information out there on the subject. Who would think the subject of pearls could be so complicated.

Thanks again!

 

[pearltime]

I was considering starting with $5 to 10 thousand which I know doesn't sound like much. Thanks, again!

 

[jshepherd]

You can definitely do better than $20 per item if you are selling retail. With $10,000 you can buy a lot of freshwater pearls as well. Zhejiang is much better than Canton. Guangzhou had a lot of factories in the past, but they have been closing up. The last big one to go was M&J. The good factories are now near the pearling areas - Guangzhou is not one of them.

 

[Dave Battles]

Recommendations on ideal sources

Recommendations on ideal sources

Hi, and thanks to many on this site for the generous sharing of time and expertise to assist some of us who are new to the field.

Like Pearltime, I too am contemplating a trip to China to buy freshwater pearls. I attended the March Show in H.K. and found it worthwhile but would like to get closer to the source for more selection and better prices. I have a budget of around $20K for this trip. Is it feasible to go to the farms with this small a budget? At the farms is it necessary to take whole lots or do they let you sort through batches and cherry-pick? Also, regarding Jeremy's suggestion that a good target at the Beijing market pearl companies, is 30% off the asking price...is this rule of thumb applicable at the farms as well (I am guessing not). And finally, is it necessary to speak Chinese or is it feasible to bumble along with English? Sorry for the barrage of questions. I look forward to becoming an answerer of questions rather than an asker of them.

Dave

 

[jshepherd]

Selection of FW does not get much better than that of the HK shows. But the prices at the shows are always going to be substantially higher. For this reason Zhuji or Wuxi will be better.
$20,000 will get you a lot of lwer-end goods, or a small selection of higher-end goods, but is not a bad budget. They will talk to you for that budget. They are typically trying to sell you lots, although do not be afraid to discard those that obvious fillers, but will be willing to sell by selection. Keep in mind you will be paying a premium to select, however. But with a budget of only 20k you will not have another choice, otherwise you will blow your budget on one size.
My suggestion for Beijing is 30% of the asking price, not 30% off the asking price - just a personaly standard there. In Zhuji you really must know the market prices to determine how much you need to deal. Some sellers will be very fair up front. Some will always try to 'play the game'. It is very different from Hongqiao where the game is all they know.

Speaking Chinese is not really necessary in the FW areas. If you ahve the language aptitude I would suggest getting the basics down, however. Numbers, prices, a few negotiating words, can go a long way there.

 

[jshepherd]

One piece of advice I can definitely give you - If you post on this forum mentioning a trip to Zhuji you will probably receive contact from traders in China. Don't make your contacts until you get there, and don't accept any help before you go. You will have plenty to choose from when you arrive. Read Bill's story on PearlsandJade.com to understand why.

 

[pearltime]

So if a person has only $20,000 then it might be wise to bargain for a whole lot? (to get a variation of sizes) Is it still relatively safe and crime free in China? I know cash is king but I'm a bit leery.


Is bargaining prevalent in Hong Kong?

 

[Dave Battles]

Thanks for the helpful advice Jeremy...and thanks for the clarification on the 30% issue (an important clarification!). So if you don't recommend setting up contacts/appointments prior to leaving, how should a first-time visitor to Zhuji pick the (2 or 3) farms to visit once there? (in fact what is the best way to even find the farms?...do you have any recommendations?).

By the way...just a reality check...with a $20K budget do you think its even worth going to Zhuji or Wuxi...or do you recommend sticking with the shows and markets until I can increase my buying budget by 3 or 4x?

Thanks again for your very appreciated help with these questions.

 

[jshepherd]

So if a person has only $20,000 then it might be wise to bargain for a whole lot? (to get a variation of sizes)

No, not for a whole lot of mixed sizes. They sell one type/size at a time. I do not think you will find any lots that vary more than 1mm. Try for just a few hanks of each size without individual selection and you should do fine.

Is it still relatively safe and crime free in China? I know cash is king but I'm a bit leery.

It can be dangerous, you do need to be careful. I have been carrying cash there for a decade and have never had a problem, but I have heard of horror stories. I think a lot of it has to do with how you carry yourself and how careful you are. Cash is not completely necessary either. They all accept a standard T/T.

Is bargaining prevalent in Hong Kong?

Not as much. For first business, defnitely. Dealing with Chinese companies, definitely.

how should a first-time visitor to Zhuji pick the (2 or 3) farms to visit once there?

You will not be visiting a farm (except to take pictures if you like). You are dealing with factories. Just head for Shanxiahu (market, not factory) and take your pick. You will have the best selection with the larger ones, Ruan, Grace, Pure Pearl, etc. You will get the best deals on the open floor, but be careful, it is truly a thieves market.

with a $20K budget do you think its even worth going to Zhuji or Wuxi...or do you recommend sticking with the shows and markets until I can increase my buying budget by 3 or 4x?

Not really enough to get much high-end merchandise, but you can get a lot of lower-end goods (similar to the majority of the pearls at Hongqiao) for 20k. It is definitely a freshwater budget only.

 

[Dave Battles]

Thanks for the great advice Jeremy...It's obvious from your comments that one must quickly develop an understanding of what various pearls of different qualities are worth or risk the likelihood of getting taken. I'll be sure to do my homework first. Many thanks for the help.

Dave

 

[susannahxu]

from Chinese factory

from Chinese factory

Thanks for the great advice Jeremy...It's obvious from your comments that one must quickly develop an understanding of what various pearls of different qualities are worth or risk the likelihood of getting taken. I'll be sure to do my homework first. Many thanks for the help.

Dave

Hi, I am from a pear factory in Weitang, Suzhou , the earliest place for freshwater pearl culturing in China. It's very nice to meet you in this forum, althought a little bit sorry to have seen some words on Chinese pear market from Mr.Shepherd. Chinese pearl market can be by no means a thieves market. Mr.Shepherd is an experienced and successful businessman, and I have great respect for his achivement in this field,but the situation of Chinese pearl market is not that bad as he has said, and Chinese pearls factories have been learned a lot from the exchanges with foreign pearl dealers. They have improved a lot in their international reputations. Hongqiao in Beijing, Shan Xiahu in Zhejiang, and Weitang in Suzhou are three biggest centers of freshwater pearl wholesale. However, farms are almost in Zhejiang and Suzhou. You will find best pearls at satisfied price here if you would like to pay enough patience. Of course, it would better for you if you have some knowlege of pearls and Chinese pearl market. 80% of product from our factory have been exported to the western world in form of loose pearls and pearl necklace. If you have any questions about Chinese freshwater pearls, don't hesitate to asked. It's my pleasure to answer your questions here. And you can also send your questions to my emailbox: susannahxu80@hotmail.com.

 

[jshepherd]

I do not think you have a clear understanding of what is referred to as a thieves market.
I am referring to the open-atrium market in Shanxiahu, or the 3rd floor of Beijing Hongqiao, where pearls are bought and sold as quickly stocks are traded on Wallstreet (and at times with a similar frenzy). Where pearls are switched, the ends of strands drop a half dozen grades, and no one in their right mind would walk away after paying without the pearl in hand.
This is a thieves market. This does not mean that the Chinese pearl market (or industry) is a thieves market - do you understand what I mean?

 

[susannahxu]

This is a thieves market. This does not mean that the Chinese pearl market (or industry) is a thieves market - do you understand what I mean?[/QUOTE]

In this sense it's truly an interesting metaphor. Thank you for your detailed explanation. Maybe the misunderstanding came from barriers of the language and cultural background. As the people from two quite different countries, we do need more communication to get a better understanding. I know this forum by chance and I'd like to make some friendly exchanges of ideas about pearls with someone who are interested in it. I am sorry if I didn't make myself clear, and I am still very happy to see your explanation.