Gemstone and jewelry connoisseurs alike depend on the AGTA GemFair, and the slate of annual shows that crowd around it in Tucson’s desert landscape every February, not only to alert them to design trends, gemstone discoveries and manufacturing advances, but also to provide insight on what the market is asking for — and buying. This last factor took on heightened urgency at this year’s show, held February 4 through February 9, since many dealers are fearful, amidst growing concerns about the global economy, that no one is buying anything. The buzz at the show was more about affordability than design and the jewelry and gemstones with lower price points captured the greatest interest.
Business Ups and DownsOne interesting trend reported on the floor was an influx of new buyers, with many exhibitors sharing that they had opened more new accounts this year relative to previous years, according to an AGTA spokesperson, who noted that AGTA itself had signed up 50 new members at the show. Exhibitors said the new business was from regular show attendees who had not previously purchased from them but were looking to add something new to their showcases. One exhibitor, for whom Tucson was only the company’s second show, said he saw a lot of interest from retailers trying to stimulate business by diversifying with a new and different product line. Overall, however, this year’s GemFair attendance of 7,640 was down by 19 percent from 2008.
“No one knew what to expect this time, and people were careful in their buying. Although business was modest, transactions were ongoing, especially in the first few days of the show,” remarked Douglas Hucker, AGTA chief executive officer (CEO). “We had a lot of positive feedback from our exhibitors about the quality and quantity of the traffic on the show floor. Many buyers see a great opportunity in colored gemstones and pearls in 2009 and were on hand to diversify their merchandise mix.”
Several retailers reported they were carrying higher stock levels in their inventory back home and were primarily looking for special order and key stock pieces at the show.
A jewelry manufacturer whose large exhibit is a fixture at GJX bemoaned the fact that “business was off well over 50 percent” for him and he was trying to make sales at any price. In AGTA’s Design Pavilion, one established jeweler confided that he’s “not buying any new gemstones this year.” Instead, he was focusing on selling down his existing inventory.
New and DifferentStill, there were some pockets of strong business. Natural purple jade exhibited by Heyden Stones, Inc. saw steady interest throughout the show. This relative newcomer to the Tucson scene hails from the deserts of Northwestern Turkey and occurs in colors ranging from taupe to mahogany to lavender-purple. Its primary composition consists of jadeite, acmite, quartz and plagioclase. Natural gemstone collectors embraced the fact that it is not dyed, heat treated or polymerized.
Another scene stealer was American Pearl Company (APC)’s Lagniappe cultured pearls, which the company is promoting as solid nacre, making them highly lustrous, hefty for their size and extremely durable. The company produces the proprietary free-form pearls in freshwater using true keshi farming techniques. Gina Latendresse of APC remarked that “They were received well in Tucson. It was something new and the designers were very interested to include our Lagniappes in their pearl category.”
It is no coincidence that both Heyden Stones and APC offer jewelry lines in which the majority of price tags come in lower than $2,000. That undoubtedly added to their appeal to the price-obsessed buyers.
The Centurion Jewelry Show, which preceded the opening of GemFair, focused on upper-tier couture jewels — admittedly a tough sell in today’s market, as reflected in the lack of traffic on the exhibition floor. Diamonds featured prominently in most elite exhibits. Early, unofficial estimates were that Centurion traffic declines were at least comparable, if not greater, than the 19 percent drop in GemFair attendance.
Information CentralIn a seminar targeting what jewelers need to know now, Pete May, president of Greener World Media, untangled some of the questions jewelers raise about going green. “We speak to a lot of different industries besides jewelry, but it’s interesting to see the commonalities across sectors,” said May. “I think the ‘aha!’ moment for some attendees was realizing that even if their current customers aren’t asking about ‘green,’ their younger counterparts will increasingly be doing so. It was probably an epiphany for many attendees that greening their business could add value.”
At the GJX, Ramat Gan-based Gemewizard debuted its color communication system. Through programmed variables of gemstone shapes, carat sizes and 31 master color hues, each recreated in six color tones, and each of those appearing in six levels of saturation, a potential match can be achieved for a subscriber’s desired gemstone. Then current wholesale prices for that gemstone are calculated through Gemewizard’s constantly updated system.
Accredited Gemologist Association (AGA) assembled a broad scope of topics for professionals to study at their conference. One hot topic concerned the impact of lighting on color-grading fluorescent diamonds. Christopher P. Smith, vice president and chief gemologist of American Gemological Laboratories (AGL) led a discussion about recent laboratory findings involving research on and identification of natural, nonheated tanzanite. Smith was also this year’s winner of the prestigious Antonio C. Bonanno Award for Excellence in Gemology.
Article from the Rapaport Magazine - March 2009. To subscribe click here.