RAPAPORT... All the world may meet in London, but when the world wants to shop, it comes to Hong Kong.
For jewelry lovers, Hong Kong is Candyland, with miles of glittering shops showcasing diamonds, pearls and big-name watches. The territory’s duty-free status and reputation as a bargain for jewelry clearly resonate with the throngs of tourists who arrive each and every day.
DIVERSITY
Fortunately, Hong Kong’s clientele is as varied as its jewelry. Typical shoppers include local residents, foreign tourists and, more and more, visitors from Mainland China, who eagerly snap up everything from diamonds and jade to 24-karat gold jewelry.
Two of the most highly trafficked shopping areas are Kowloon’s Nathan Road and Queen’s Road in Central Hong Kong, where huge shops are often located side by side, sharing valuable real estate with optical shops, chain clothiers, fast-food restaurants and back alleys selling all types of tourist paraphernalia.
Big names in retailing here include Chow Tai Fook, Mabros and Tse Sui Luen, in addition to international giants, such as Cartier, Tiffany & Co. and Bulgari. Selections range from diamonds and diamond jewelry, brand-name watches, jade, colored stone and pearl designs to the popular Chuk Kam, 24-karat gold jewelry. The field is more crowded as foreign retailers enter this market and local producers seek retail spaces to expand their businesses.
A decade ago, when most jewelry manufacturing was done in the Hung Hom area of Kowloon rather than on the Mainland, it was a practice for manufacturers to offer tours of their factories, complete with a stop in their “showroom,” or retail outlet. Today, a handful of the big names still operate showrooms, but the trend has migrated toward freestanding shops in more highly trafficked venues.
Continental Jewellery (Mfg.) Ltd., for example, operates two shops in Hong Kong: one in the tourist-friendly Ocean Terminal, the other in the neighboring Mong Kok region. Tse Sui Luen, another local manufacturer, has a handful of shops in Central, Kowloon and other locations. Chow Tai Fook, a giant in Chuk Kam production, is ubiquitous in all the major shopping areas. Aaron Shum, producer of several different brands that are well-known to Hong Kong retailers, is planning to open some freestanding shops or retail outposts in the future.
Interspersed throughout the major shopping regions are a number of smaller design firms that maintain second-floor shops or in-store boutiques in large department stores, such as Lane Crawford. One of these, Peter Baer, is a Hong Kong – based designer who creates one-of-a-kind designs using jade, pearls, diamonds and colored gemstones. “Most of our customers are locals who hear of us by word of mouth,” says Doris Baer, company director. “We also have one American lady who frequently brings customers into the store.”
E&V Jewellery Ltd., a burgeoning Chinese brand, specializes in high-fashion designs incorporating diamonds and colored gemstones with colored crystal and porcelain in 18-karat gold. This collection is wholesaled to an international audience that ranges from Americans to Europeans. E&V, like Baer, enjoys prominent boutique space in the Designer Corner of the jewelry department in Hong Kong’s upscale Lane Crawford.
Other high-status upstairs operations are Mabros Jewellery Co. and Falconer Jewellers, divisions of the Lee Heng Diamond Group. The shops are located in central Hong Kong and in the Peninsula Hotel Arcade, respectively. Both specialize in important diamonds and gemstone jewelry, as well as mega-carated diamond watches.
BANNER YEARWhile there are no published figures about the revenue earned from Hong Kong’s retail jewelry sales, all indications are that 2006 was a banner year and 2007 is anticipated to be strong as well. The reasons, according to Anne Chick, senior exhibitions manager with the Hong Kong Trade Development Council (HKTDC), include generous tax rebates, a strong local economy, low unemployment rates, a booming stock market and overall economy.
According to estimates, annual visitors to Hong Kong total approximately 40 to 50 million, the bulk of them from China. While Mainland visitors are still required to obtain visas to visit Hong Kong, the process has been streamlined from a wait of two to three months in the past to just one week. The visas, valid for a short period of time, are highly sought after by Chinese consumers, who throng to Hong Kong to visit and shop. Visitors from China usually buy gold for themselves, family and friends, says Chick. The reason is simple: “The Chinese feel that Hong Kong makes better products.”
While diamonds top the list of wanted items, most that sell to Chinese visitors are fairly small in size, 15-pointers on average, found mostly in fashion items rather than engagement rings. Overall, Chinese shoppers have a preference for better clarity and color rather than size.
The buying of an engagement ring is not yet as strong a trend among Chinese consumers as it is in the West. However, the custom is developing in major cities such as Shanghai, Beijing and Shenzhen. Nairee Leung, brand manager at Aaron Shum Jewelry, notes that engagement rings are more desired by the new generation than by those of the past.
BRANDSBrands, however, are an increasingly important part of the shopping formula here, as evidenced by the growing roster of big-name international emporiums — most recently, Sweden’s fast-fashion H&M opened a huge shop in Central. This fact has not been lost on Hong Kong jewelry manufacturers, many of which are beginning to create original collections, market their own names and unveil retail outlets.
With such a diverse audience, there is a wide assortment of jewelry sold in Hong Kong. For example, says Gladys Ip, director at WCJ Co. Ltd., medium-sized jewelry is a top-selling category in Hong Kong, as opposed to the larger pieces favored by Americans and Middle Easterners. Diamonds are always a priority and invisible settings are popular, she says. Vivian Chan, designer at E&V Jewellery, maintains that her Hong Kong customers like bolder, more fashionable designs. Her colorful 1960s Collection of diamonds and multicolored gemstones was especially well-received by upscale shoppers at Lane Crawford. Two of her new high-fashion collections are Bunch of Flowers and Secret Garden, colorful, nature-inspired designs that retail from $1,400 to $8,000.
Article from the Rapaport Magazine - April 2007. To subscribe click here.