Core Insights - Shenzhen Shui Bei has evolved into a significant jewelry trading hub, despite lacking natural precious metal resources, with over 9,000 enterprises and more than 60,000 workers in the industry [1][2] - The area has transformed from a processing zone into a comprehensive jewelry industry cluster, capturing 50% of China's wholesale market share for gold and jewelry [2][8] - Shui Bei's success is attributed to its complete supply chain capabilities, integrating raw material sourcing, production, and retail, making it a vital center for various jewelry types, including freshwater and seawater pearls [3][4] Historical Development - The turning point for Shui Bei came in 2003 when the People's Bank of China lifted restrictions on gold purchases, leading to rapid industrial growth [2] - The establishment of the Shui Bei International Jewelry Trading Center in 2004 marked its transition from a trading hub to an industrial cluster [2] - Over the years, Shui Bei has seen a shift from traditional processing to high-value-added activities such as design, brand operation, and quality inspection [8][10] Market Dynamics - Shui Bei serves as a major distribution center for freshwater pearls, integrating high-quality pearls from various regions and providing a complete ecosystem for brands [3][4] - The area has also become a key player in the lab-grown diamond market, with prices significantly lower than natural diamonds, leading to increased market penetration [7] - Predictions indicate that the market penetration of lab-grown diamonds in China will rise from 7% in 2022 to 17% by 2025 [7] Brand Development - Shui Bei has nurtured several well-known jewelry brands, including Zhou Dasheng and Zhou Liufu, which have successfully transitioned to public companies [8][9] - The area has developed a unique "Shui Bei model" that allows many jewelry brands to grow from small operations to significant market players [9][10] - Recent initiatives by the local government aim to support talent development and protect intellectual property in the jewelry sector, further enhancing Shui Bei's reputation as "China's Jewelry Capital" [10]