In my experience I do not find buying from Hong Kong carries a premium. I have dealt with both Hong Kong and Mainland China. Unlike Tahitian where it is worth processing myself FW is not. The cost of freshwater is so low that processing stringing becomes the most important component.
The Hong Kong dealers have cash to buy pearls from the farms and process the material in china themselves. There is no strategic advantage that the Chinese dealers have over their Hong Kong counterparts.
When it comes to low end goods there is no bottom on either side. HK dealers tend to specialize in specific areas such as high quality , keshi or dyed.
They do tend to work in higher volume and will charge more for what they consider retail.
I have never had a Chinese dealer beat a HK dealer on a volume order.
Let me give you an interesting story going back to the 80s when I was invited by the Chinese government to have exclusive rights to CFWP for the US market. After banquets and much pomp and ceremony I was offered the rice pearl strands at the best government rate but on my return to HK the same material was cheaper. I asked why? My friend explained that they pay the same price as was offered to me but they change their money on the black market first so their real cost was much lower.
They have been doing this for a long time.
Peter,
When was the last time you were in Zhuji to buy freshwater pearls? Have you ever gone
in person and priced out different processors there?
The difference is 2-300%, sometimes more. In fact, many of the small and medium-size sellers in Zhuji also have offices in Hong Kong and keep separate pricing scales (Shanxiahu Pearl, for example). A typical negotiation clich? in Zhuji is "that's Hong Kong pricing!"
Most of the larger sellers in Zhuji keep their prices on par with Hong Kong. Grace will not even attempt to sell to Zhuji and refers all buyers to their Hong Kong offices, although they process their large orders (like Honora) at their Zhuji facility.
As for strategic advantage on pricing, China most certainly does have it. Hong Kong is expensive, very expensive. China is cheap. Some of the larger players (like Man Sang, for example) do buy and process their own materials. But they process them in Shenzhen and sell in Hong Kong. Their prices, even at 50% wholesale discount rate, are close to triple Zhuji market prices.
Yes, freshwater pearls are very inexpensive. But when dealing in higher-end freshwaters the cost can be substantial, making the stringing and clasp a small afterthought.
It is easier to shop for freshwater in Hong Kong. There is no doubt about that. The sellers there understand the market needs much better, and are much more willing to customize production for a customer. But the options and the prices are substantially better in Mainland China. I don't think anyone who has spent ample time in both could disagree.
Pearlescence,
Strand length is a problem. If you shop at the markets in China the strands will always be short, under-sized, and the quality of the pearls will go down as the string progresses to the ends. The only way to really get away from this is dealing with materials and buying by weight, not by strand.
You are so kind.
