The consumption of jewellery containing valuable stones like diamonds, rubies and sapphires has plummeted this shopping season compared to last year, according to jewellery companies.

According to Phu Nhuan Jewellery (PNJ) in Hanoi , its turnover on luxury jewellery and gemstones fell 30 percent in 2008.

“During the last shopping season, may customers ordered jewellery with large diamonds. However, not many customers now wanted jewellery with gemstones,” said the Hanoi branch director.

Doji Gems and Trade JSC, which imports products from Italy , Japan , the Republic of Korea and Hong Kong , also said their luxury jewellery business came to a halt in 2008.

“The company’s turnover in November and December did not increase. We ran a number of promotion programmes, but the results fell below expectations,” said Doji official Thuy Huong.

Most customers were spending money on gemstones under 10 million VND (625 USD), he said.

To meet the demand of consumers with limited financial resources, jewelers are creating a line of inexpensive products.

Recently, the PNJ has created in a line of rings and necklaces using artificial stones, which has reduced prices from around 10 million VND (625 USD) to about 5 million VND (310 USD).

Other customers were opting for semi-precious stones like topaz and amethyst, said Tran Ngoc Son from the Thanh Dat Gold and Silver Store.

The Bao Tin Minh Chau Company is targeting customers by marketing jewellery using small gemstones.

The company had increased turnover of these products by 50%, said Nguyen Le Thu, a company business official.

Although the turnover for luxury jewellery fell by 30% in 2008, the PNJ Hanoi said that 2008 total turnover was still the same as the previous year due to rising demands for cheaper jewellery and high gold prices. (VNA)