This article first appeared in the Thailand Special 2024.

China Stone is capitalising on robust demand for high-quality calibrated coloured gemstones to fuel its business while embarking on digital initiatives to drive further growth.

The Thailand-based company specialises in extremely precise, machine-cut coloured gemstones below 0.15 carat produced by advanced digital engineering and state-of-the-art cutting technology to guarantee high standards of uniformity in size, shape and symmetry. China Stone keeps over 10 million stones in stock at any given time to ensure continuity of supply for its clients.

Given the nature of its business, China Stone was spared from demand fluctuations during and after the pandemic, according to CEO Li Chongjie. Since the company works primarily with jewellery and watch brands that require consistent supply of coloured gemstones, client orders and plans have remained steady over the years, he disclosed.

“Rubies, emeralds and sapphires are always in high demand,” Li shared. “Europe accounts for 40 per cent of our business, with the US generating 35 per cent while Japan and Greater China bring in 17 per cent.”

Supply chain

Li cites supply shortages of preferred qualities from clear and transparent sources as among the major challenges facing the coloured gemstone trade. Blue sapphire and tsavorite are particularly difficult to source.

“Our rates went up in 2023 due to the increase in rough prices. Other costs such as labour, materials, equipment and shipping also rose substantially,” he said.

China Stone addresses supply challenges by tapping the vast network of sources it has developed over nearly 30 years. It also enters into cooperation agreements with coloured gemstone miners to ensure a regular supply of rough.

The company is likewise bolstering its sustainability credentials by providing clients with a transparent supply chain. Li noted that US and European jewellery and watch companies increasingly scrutinise the business and sourcing practices of their suppliers.

“Our commitment to sustainability is however not driven by our clients. It is a sincere corporate decision to provide environmental, economic and social value in everything we do. Sustainable practices are a worthwhile investment that go beyond commercial ventures,” Li explained.

Innovation

While business fortunes may remain subdued this year amid ever-rising prices of coloured gemstones, geopolitical concerns and economic uncertainties, Li believes this is the opportune time for the trade to adjust strategies and enhance their products and services.

A master innovator, the company first blazed a trail in calibrated gemstones through its automated system for precise machine-cut stones. Today’s China Stone 3.0 features an upgraded management system, work environment, production process and supply chain.

It is also doubling down on its digital efforts by transitioning its traditional gemstone web catalogue to a chat interface with a virtual assistant to enhance customer engagement and streamline navigation.

“Instead of sifting through numerous web pages or search results, customers will now interact directly with a virtual assistant within the chat interface,” Li revealed. “This functionality will not be limited to our website alone. It will also be extended to popular messaging platforms such as Skype, Line, WhatsApp and Telegram.”

Li is confident of growth opportunities in the long run, citing a surge of interest in coloured gemstones of all varieties from both mature and emerging markets.

“More consumers are discovering the delights of coloured gemstones. With our professional service and experience, high-quality and precise products, reliable and transparent sourcing channels, China Stone is well positioned to deliver the market’s needs," he said.