For Chinese diamond and jewelry trade members, the September Hong Kong and Shenzhen shows are among the most important events of the year. The 2010 Shenzhen International Jewelry Fair, along with the Shenzhen Jewelry Festival, both held from September 15 through 19, have received increased attention in recent years.
More than 1,000 exhibitors from over 25 countries occupied approximately 2,600 booths in more than 565,000 square feet of space. Among the exhibitors, 265 overseas companies took over 815 booths. As the hub of jewelry manufacturing in China, Shenzhen is a rich source of product for the show. With more than 2,300 gemstone and jewelry companies that produce over 70 percent of China’s jewelry, Shenzhen sent 450 exhibitors to the show.
In past years, the Shenzhen show took place before the Hong Kong show, with no schedule conflicts. However, the 2010 September Hong Kong Jewellery & Gem Fair was held September 14 through 18 at AsiaWorld-Expo (AWE) for loose diamonds and other gemstones, materials and equipment. The finished jewelry section at the Hong Kong Convention and Exhibition Centre (HKCEC) was held from September 16 to 20. The number of exhibitors at this year’s show grew by 5 percent to 3,205 companies from 45 countries. Before the show, its organizer projected that more than 40,000 buyers would visit the two venues.
Hesitant Buying
The Hong Kong show, with its 400 diamond exhibitors, is a very important opportunity for Chinese buyers to make diamond purchases. The Shenzhen show, with only 20 diamond exhibitors but lots of Shenzhen-based jewelry manufacturing companies, is more suitable for ordering finished jewelry.
Many exhibitors at the Hong Kong AWE venue felt that there were fewer Chinese buyers this year and wondered aloud where they were. Although some diamond exhibitors said they were satisfied with their sales, they also said it was difficult to find new buyers this year. For their part, the Chinese buyers commented that the strong asking prices made them hesitate to buy. Some of the buyers said that they were waiting until the last day of the show or even after the show, hoping that prices would “soften up.”
Wong Ning, general manager of Cheung Ning Diamond, a Shanghai Diamond Exchange (SDE) member, told RDR that “because the Shenzhen show and the Hong Kong show had very similar schedules this year, it had some psychological effect on the diamond traders. The Chinese buyers were too busy rushing between two shows with three venues in total. Therefore, the time allocated to each venue and each exhibitor was considerably reduced. Some of the brand-name exhibitors have to exhibit in both Shenzhen and Hong Kong at the same time and had to divide resources in people, time and goods, making it more difficult to communicate with clients efficiently.”
Wong further noticed that lots of the Chinese buyers showed up at the AWE venue of the Hong Kong show on the first day of the show, September 14, and then rushed to the adjacent city of Shenzhen for its show opening on September 15. Some of the buyers also chose to come to Hong Kong after visiting the Shenzhen show on September 15 and 16.
“From the perspective of diamond traders, the Hong Kong show attracts clients from all over the world for the specific purpose of buying and every exhibitor emphasizes sales by bringing a lot of stock for viewing,” Wong added. “The Shenzhen show emphasizes more of the brand names, with megacompanies promoting their lines and introducing new concepts, while the smaller companies are trying to close sales. In general, I think our company achieved its goal of elevating our corporate image and promoting our creative ideas at the Shenzhen show, and our original booth design attracted lots of attention from visitors. Meanwhile, the sales team in Hong Kong was making sales, mostly to our existing frequent buyers.”
Colored Diamonds Gain
Since most of the consumers in China are buying their first diamonds, primarily for weddings, they tend to choose white diamonds. In recent years, colored diamonds have begun to gain popularity among wealthy buyers who are choosing a second diamond, although more consumer education on colored diamonds is still needed in the Chinese market.
Rio Tinto showcased its Argyle Pink Tender Diamonds collection in Mainland China for the first time. Jean-Marc Lieberherr, general manager for sales and marketing for Rio Tinto Diamonds, said the decision to present the goods in China was a reflection of the growing appreciation for rare colored diamonds in the Chinese market.
The collection of 55 stones — with the highlight a round, 2.02-carat, brilliant fancy vivid pink diamond named Argyle Mystra — is available for viewing in China to a select group of diamantaires, collectors and connoisseurs. From China, the collection will then be shipped to New York for another preview before its return to Australia in time for the bid deadline of October 26.
The Marketplace
• Many diamond wholesalers feel that sales in September were not as good as in 2009, and they fear demand might be decreasing.
• Demand remains good for rounds in 0.30 carats to 1.10 carats, D-H, VS, Gemological Institute of America (GIA)-certified diamonds in triple EX, double EX and EX cut grade with none to faint fluorescence. Outside Shanghai, I-J, VVS sells better.
• The occasional need for stones from 2 carats to 5 carats still exists.
Article from the Rapaport Magazine - October 2010. To subscribe click here.