The Porter’s Diamond framework of gives us an insight of a nation achieving international success in a particularly to china jewellery industry.

Factor Conditions:

The Chinese economy has a huge potential in terms of the availability of the factors of production such as skilled labor, infrastructure wise also more importantly many investors are willingly investing in china.

Demand Conditions:

There is a huge demand for the jwellery in the world and china is the 2nd largest consumer of gold jwellery after India and consumes around 18% of the total world of gold consumption. Moreover Chinese market has linkages to many markets and they have largest jwellery trade fair where in people from different parts of the world comes to have the deals. Domestic growth is about 32.91% over the previous year (Data released by gems & Jewelry Trade Association of China) this gives an idea of the potential market of jwellery which lies in China.

Firm Strategy, Structure and Rivalry:

The conditions in the nations governing how companies are created, organized, managed and domestic rivalry. In case of china initially being a closed economy has now started opening its economy to the world and people has noticed the potential and had started investing. The Chinese government has also deregulated its investment policies in terms of investment by a foreign company all these has given a boost to this sector and we see immense growth in the jwellery industry in China.

Related and supporting industries:

China has huge manufacturing capabilities in terms of labor as well as mass production with cost benefits.

Government

In the porters model government being the external hand is in very much favor of the industry and trying to organize various events in terms of trade fairs and deregulating various norms to support the industry. Government is highly favorable.