Gemfields says rubies making headway in Chinese market

Rubies are becoming the favourite coloured stones among Chinese consumers, with about 61% of the population considering them a “desirable” item and about 55% buying rubies in the past year, precious gemstones miner Gemfields (LSE: GEM) says.

Among the findings outlined in Gemfields’ second Chinese consumer report, the miner says that, in terms of awareness, rubies are nearly twice as popular as second-place sapphires. When considering its desirability and purchase, the red gemstone is nearly three times more popular than the second-place emerald.

CEO Sean Gilbertson said the new research shows “an unquenchable thirst” for rubies amidst post-pandemic uncertainties, representing a unique opportunity for gem producers.

“Rubies are said to symbolize protection, prosperity and passion, and it is clear from this market research that Chinese consumers are passionate about rubies,” Gemfields’ marketing and communications director, Emily Dungey, said.

The report suggests Chinese consumers have a particular preference for rubies, which is linked to the aesthetic symbolism of the gemstones in their culture.

When asked “What does ruby mean to you?”, the most popular responses of “wealth and prosperity” (31%) and “tasteful” (29%) were closely followed by “very Chinese” (28%), with respondents sharing that they see rubies as a symbol of traditional Chinese culture and the embodiment of “new Chinese” aesthetics, which is suitable for incorporation into everyday new Chinese dressing style, the report says.

Gemfields’ second Chinese consumer report. Credit: Gemfields

The research indicates potential for innovative ruby product applications, such as personalization and customization.

The report also identifies three groups of potential ruby consumers. The first group is neo-socialites, who are creative, confident and sociable, most of them are male entrepreneurs and executives, and rubies are seen to be a symbol of their social status. The second group, aesthetic appreciators, are those who enjoy an elegant lifestyle and have a wide range of hobbies. This group is mostly made up of young women in first-tier cities. The third group is Chinese culture devotees, most of whom live in historic cities such as Beijing and Chengdu. This segment appreciates the collector’s value of rubies and the possibilities of fusing rubies with traditional Chinese styles.

Gemfields notes that while the China market demonstrates a high level of interest towards rubies, there is a knowledge gap with a strong demand for greater transparency around important topics such as pricing, certification, mining and processing. 

“Current information mainly comes from brands and specialty jewellery influencers on social media – appraisers, designers, brand sales staff and celebrity styling,” the miner said.

Gemfields owns and operates the Montepuez mine in Mozambique, which is the world’s richest known ruby deposit. It also holds the Kagem emerald mine, in Zambia, which provides more than one-fifth of the world’s green gemstones.