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Shows
Slowdown At Hong Kong Shows
Despite reports of increased attendance, overall show results were soft in Hong Kong.
By Mary Kavanagh
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| Edelweiss Jewellery |
One of the highlights of the second edition of the Hong Kong Trade Development Council’s (HKTDC) March jewelry shows in Hong Kong, held March 2 through 8, was the launch of a Natural Diamond Quality Assurance Mark (NDQA Mark) by the Diamond Federation of Hong Kong (DFHK) to further strengthen the city’s reputation as the diamond center of Asia. “We have been preparing the NDQA Mark for more than a year,” said Lawrence Ma, founding president and chairman of DFHK. “By putting in place a rigorous assessment process and adhering to the highest ethical business standards, the mark provides quality assurance to consumers and increases their confidence and desire for purchasing natural diamonds in Hong Kong. This strengthens integrity as a core value of Hong Kong, and ultimately contributes to building the city’s reputation as the diamond hub of Asia and a ‘shopper’s paradise,’” he said at a press conference at the show. The initiative has been well received so far, with more than 90 percent of DFHK members already participating — underlying their commitment to sell only authentic natural diamonds and not synthetic stones.
Both visitor and exhibitor numbers were up at the Hong Kong International Diamond, Gem & Pearl Show and the Hong Kong International Jewellery Show, which were held at two different venues in the city. The former featured precious stones, pearls and raw materials and the latter, finished jewelry. More than 76,000 buyers from 140 countries and regions attended the shows, an increase of 2 percent over the previous year, according to HKTDC. The number of exhibitors — 4,360 from 52 countries and regions — was up 13 percent compared to 2014, setting a new record and ensuring the events’ continued status as the world’s largest jewelry marketplace.
“Despite the global economic challenge, the two shows this year recorded a slight increase in buyer attendance, with double-digit percentage growth recorded for attendance from some traditional markets, such as the U.S., Italy, the U.K. and Japan,” HKTDC reported. The council noted that attendance from emerging markets, including Thailand, Israel and South Africa, also recorded significant growth.
Exhibitors from Hong Kong at both venues were less positive about the show than the fair organizers and, contrary to the official HKTDC statistics, many reported that traffic was down from 2014. Their overall perception of the fair was that it was “quiet” and “slow” and generally “not as good as last year.” Exhibitors also commented on the lack of new customers, although many said they did manage to conduct business by relying on their existing customer base.
Rakesh Gajera, chief executive officer (CEO) of Laxmi Diamond, a jewelry wholesaler that specializes in TTLB and TTLC goods, thought the timing of the show was off, coming so soon after Chinese New Year. “Half of my Chinese customers are still on holiday,” he said, pointing out that having a presence at the show was important for him to show he is still active in the business. A spokesperson for Continental Jewellery, a large manufacturer, said business was similar to 2014, but “the March show is a big show and we saw fewer buyers, so it was a bit below our expectations.”
Many customers were buying less, looking for bargains and very sensitive to price points. “Customers are not buying and asking crazy prices,” said Darshan Patel, marketing director at China Diamond. “People don’t want to spend, they are looking for value.”
Kenneth Chan, director of Edelweiss Jewellery Company, a Hong Kong manufacturer and wholesaler of diamond goods and colored gemstones, said, “Bigger pieces are not selling — anything above $10,000 is not selling. Customers are very cautious about the ongoing market situation and are expecting diamond prices to drop, so they are waiting.” He noted that customers still had time before the JCK show to restock their inventory.
Comments from Ilya Gostev, sales manager at Finex Jewellery, were similar. “People are very price sensitive and want to see more for their money — this is a global trend.” He and others also commented on the lack of customers from Russia and Ukraine.
A spokesperson for Universal Jewellery, Hong Kong jewelry manufacturers and wholesalers, said the company has seen a shift in the purchasing habits of Mainland Chinese from jade to emerald. “Lots of Mainlanders were interested in emeralds this time. They are looking for alternatives to jade, which is quite expensive.” Tourmaline was also a “hot item” with this target group. Universal has a retail outlet in Central Hong Kong, where it sells predominantly one-of-a-kind, high-end jewelry pieces to “clients who appreciate design and craftsmanship.” Another emerging trend is the demand for ceramic rings. “It is a global trend,” said Gostev, noting that Finex Jewellery was pleased with the response from customers from around the world to its ceramic ring collection on display at the show. The black ceramic rings are inset with small white diamonds and many also incorporate a gold band, resulting in a nice color contrast.
The HKTDC commissioned an onsite survey during the two shows, interviewing 1,206 buyers and exhibitors about their views on market prospects, products and industry trends. The survey found that around 80 percent of buyers expect steady or increased overall sales this year. Both buyers and exhibitors are optimistic about the growth potential of the jewelry market in Hong Kong and Mainland China, with most buyers and exhibitors considering the Mainland a key market to explore.
Ninety-one percent of buyers surveyed and 93 percent of exhibitors consider Hong Kong’s fairs a major channel to find new suppliers, while 79 percent of exhibitors consider the fairs a key avenue to promote new products. The majority of respondents said the twin Hong Kong fairs are their must-attend trade show, HKTDC said in a press statement.Article from the Rapaport Magazine - April 2015. To subscribe click here.
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