Zhou Xiaoguang from Yiwu: Queen of Costume Jewelry

Zhou Xiaoguang knows a thing or two about survivingChina, with plans to open 2,000 more in the next two
hard times. As a girl of 17, she left her poor Chineseyears.
village to make a living as a peddler. She soldIt has 300 designers producing more than 100 new
embroidery hoops,needles and patterns, hefting adesigns a day. It has teamed up with diva Celine Dion
100-kilogram sack as she moved by train from townto produce a new line of high-end jewelry. It has
to town.formed an alliance with Austria's luxury brand
Today she is a millionaire owning the world's biggestSwarovski to use its crystal in Neoglory products.
maker of costume jewelry. Her company, NeogloryOnce a “hidden champion,” Neoglory now
Holdings Group, employs 4,000 workers in a vastaspires to protect itself from economic ups and downs
factory complex in this trading hub three-hour driveby becoming an enduring brand of its own, with an air
from Shanghai.of quality and romance.
The company is just 14 years old – ZhouWith demand for Neoglory jewelry dropped by half in
Xiaoguang is not inclined to throw in the towel overEurope and the United States, the company is shifting
something as trifling as a global financial crisis. To theits export focus to emerging markets such as Russia,
contrary, she said the crisis is a chance to snap upSouth America and Middle East. Like other Yiwu
faltering rivals, shift into new markets and move up themanufactures, Zhou is also putting more emphasis on
industry chain from maker of costume jewelry tothe domestic market, which now accounts for 60 per
designer, retailer and marketer.cent of its $340-million annual sales, up from 40 per
“It's a difficult time but it's an opportunity too and wecent five years ago.
are ready to take advantage of it,” said Zhou,Rather than churning out more jewelry, Zhou said,
dubbed the “queen of costume jewelry” by a“We have to improve design, research and
Chinese newspaper. “We are the top company inprocessing.” To that end, she travels all over the
China in this industry.” Zhou said proudly.world for trade shows and visits jewelry factories
That proud attitude is common in Yiwu entrepreneurslooking for new ideas. This month she is going to
these days. China may be going through its sharpestSwitzerland. Next month she is off to the United
downturn in years, with exports crashing and millionsStates for the speech about investing and the
thrown out of work, but many Yiwu companies see iteconomy delivered by Warren Buffett.
not as a disaster to moan about but an opportunity toZhou said that financial crisis is a chance for Yiwu
seize.companies to mature, going beyond the low-tech and
Ms. Zhou is taking advantage of the crisis to sharpenlabor-intensive model to lift Yiwu into a more thriving
Neoglory's competitive edge. The company started offmarket. “Companies with good capabilities and
as a simple low-cost manufacturer, knocking off cheapdetermination can survive and even refine their skills
rings, bracelets and necklaces from copied foreignfor the better,” she commented in an interview.
designs. Now it has 600 of its own stores around