How to import jewelry and accessories from Chinese suppliers? Read on and find out how this industry works – and what really matters when selecting a jewelry supplier.
In this article, we explain what you need to know about heavy metal regulations, design customization, molds, and product packaging. We also offer you insights into quality management and the different categories of jewelry suppliers.
Manufacturers, trading companies and wholesalers in the jewellery sector
There are three main categories of suppliers in the jewellery and accessories sector:
1. Manufacturers
2. Trading Companies
3. Wholesalers
In general, it would be good practice to work only with the first category. In many cases, it really makes sense. By working directly with a manufacturer, you’ll have more control of the design process – and also a better opinion of their ability to ensure compliance with relevant regulations.
However, many of the industry’s leading suppliers fall into the second category, trading companies, which often include international brands such as H&M and Zara on their client lists.
Although they are considered trading companies from a legal point of view, these suppliers own several jewelry factories and are able to offer a wide range of products.
Then there are wholesalers, who belong to the third category. Buying jewelry from a wholesaler in China is rarely an alternative, at least not for European and American importers, despite the fact that wholesalers may offer Lower Minimum Order Quantities.
Read on and you’ll find out why.
Scope of activity, materials and components
There is no real difference between manufacturers in the quality of the items they make. This can be explained by the fact that manufacturers of jewelry and accessories procure the various materials from subcontractors.
Therefore, they can basically produce any “quality” available on the market. That said, jewelry manufacturers still tend to be highly specialized in a certain category of jewelry and accessories. Here are some examples of subgroups within this sector:
- Stainless Steel Jewelry
- Jewelry made with pearls
- Plastic jewelry and accessories
- Leather accessories
- Gold and silver jewellery
- Children’s Jewelry
Suppliers, which offer a wider range of products, tend to be trading companies, or (conversely) larger groups that operate numerous factories.
Product safety, heavy metals and prohibited chemicals
The jewelry industry is regulated by chemicals and heavy metals regulations in the United States and the European Union. These regulations can, in principle, be divided into two categories:
at. Regulations applicable to all jewellery and accessories
b. Regulations applicable only to children’s jewellery and accessories
Regulations such as REACH and CPSIA place strict limits on the use of nickel, lead, mercury and other substances.
It is not legal to place products on the market that contain quantities above the limits. Therefore, it is crucial to ensure that the products you purchase comply with those regulations.
Many Chinese suppliers in the jewellery and accessories sector are unable to guarantee compliance with overseas regulations. There are many reasons for this:
at. The provider does not primarily focus on developed markets. Therefore, he has limited experience in ensuring compliance and may not even be able to source the right materials from his reference subcontractors.
b. The supplier is a wholesaler or agent with little experience or is simply not aware of European and American regulations.
A supplier without the proper experience and contacts with the appropriate material suppliers is a burden.
In order to get rid of it, you must receive documentation proving that the supplier has some proven experience in the production of jewelry and accessories in compliance with EU and US regulations.
The best way to do this, is to deal only with those suppliers who can produce the test reports. For example, you might require the following documentation:
- Heavy Metal Test Report
- Test Report for REACH SVHC
- Test Report for ASTM/CPSIA
- Test Report for California Proposition 65
In our experience, this simple document check excludes around 75% of the vendors on the market. Therefore, this is the most important factor when choosing a manufacturer.
Yet, a test report only shows that the supplier, at some point, produced a compliant batch of jewelry. However, this is not a guarantee for future product compliance. Nor can an old test report be used as validation for future orders.
Gift boxes and jewelry boxes
Manufacturers of jewellery and accessories purchase product packaging from specialised subcontractors. Buyers can have two packaging alternatives:
at. Standard product packaging
Most suppliers may offer a limited range of standard product packaging, (e.g., gift boxes), which cannot be customized in design and material.
However, such packs can be purchased in small quantities – often 300 to 500 pieces – and can be branded with the buyer’s logo.
b. Custom packaging
Through their subcontractors, most suppliers can offer their buyers a customized package. However, the Minimum Order Quantity for OEM packaging is often set at between 3000 and 5000 pieces, which is about ten times higher than the Minimum Order Quantity of standard factory packaging.
Design skills and product customization
Usually, jewelry and accessory manufacturers make assembled items. They do not produce tools and components.
Jewelry parts are obtained from highly specialized materials and are procured from component manufacturers. Many jewelry factories work with more than 50 different subcontractors.
Most suppliers have the same potential in offering their buyers customized products. In the jewelry industry, there are two methods of customizing products:
at. Customization through the use of standard components. A necklace, for example, can have an exclusive design, even if it is made with standardized components.
b. Custom parts: You can also create completely new components, such as wire clamps and beads. All manufacturers do it, with the molds of their subcontractors.
Many jewelry brands apply both strategies, since they use both standardized and customized components. Using only custom components is a slow and expensive operation, as new tooling must be made for each new custom part.
Another thing that jewelry and accessories factories have in common is the extremely limited support they offer their customers regarding design. These factories, in fact, think that their buyers know a minimum of the product, so they do not like to waste time giving information to inexperienced customers.
Don’t expect to receive free design services or even feedback on your designs, unless you’re a regular customer.
Quality management
The Quality Management System (e.g., ISO 9001:2008) is implemented to monitor, manage, and prevent quality problems during the production process.
The quality management process in the jewellery and accessories sector is divided as follows:
– First step: Control of incoming components from subcontractors (e.g., design, materials, and dimensions)
– Second step: Quality Verification Points Along the Assembly Line
– Third step: Final quality control before packaging
The biggest risk for jewellery importers is defective components supplied by subcontractors. For this reason, the factory must have a standardized inspection procedure that verifies all jewelry parts and incoming materials.
The supplier must also have checkpoints along the assembly line to ensure that the assembled units contain the right components and in the right quantity.
In addition, there must be special instructions (e.g., design drawings and a list of components for each SKU) that can be consulted by professionals.
That said, internal quality management procedures are never a substitute for pre-shipment quality checks carried out by third parties.
Keep in mind that the vast majority of jewelry and accessories suppliers are not ISO 9001 certified. This does not mean that they do not apply some sort of elementary quality management process – but this should not be taken for granted.
Regardless of whether the supplier is certified with the Quality Management System or not, you should ask them for documentation regarding previous internal quality checks.
Social Compliance/Corporate Social Responsibility (CSR)
Although many buyers assume that child labor is widespread in China, this is not the case. That said, child labor is not the only focus of social compliance.
There are various social compliance organizations that issue certification to suppliers who pass their audits. The BSCI (Business Social Compliance Initiative) is one such organization.
Only the largest and most established suppliers of jewellery and accessories are certified by the BSCI. This is, of course, an element attesting to quality – in organizational terms. BSCI-certified suppliers tend to have the world’s best brands as customers.
The names of the big brands could, however, be a double-edged sword for small buyers, but, in general, this is a positive thing.
Minimum Order Quantity (MOQ)
Jewelry manufacturers tend to have more than one requirement for the Minimum Order Quantity (MOQ). The first is set on a “per order” basis and reflects the minimum number of units that the supplier wants to assemble.
The second is determined on the basis of “design” or “per component”. This requirement is not set by the supplier, but by the component subcontractor.
The latter requirement is more difficult to negotiate, but it can be handled using as many standardized jewelry parts as possible.
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