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Shows
Did Hong Kong Deliver?
Hong Kong offers two overlapping jewelry shows in different venues, creating more buying and selling opportunities.
By Mary Kavanagh and Nancy Pier Sindt
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| L’Dezen |
In promoting this year’s edition of the annual Hong Kong gem and jewelry event, the organizer, the Hong Kong Trade Development Council (HKTDC), touted “double business opportunities.” Under the banner “two shows, two venues,” the council designated the first show, held March 3 to 7 at the AsiaWorld-Expo venue by the Hong Kong airport, the International Diamond, Gem and Pearl Show for exhibitors of loose gems and raw materials for jewelry. That fair opened two days before the 31st edition of the Hong Kong International Jewellery Show (HKIJS), which features finished jewelry collections and ran March 5 through 9 at the Hong Kong Convention & Exhibition Centre in Wanchai.
The separate merchandise categories accommodated approximately 500 more exhibitors than the 2013 show and the overlapping schedule offered a record number of buyers a relatively smooth flow from one location to the other. This year’s double-show format, which increased exhibition space by about 30 percent, hosted 3,850 exhibitors from 53 countries and regions and attracted more than 74,000 buyers from 145 countries and regions. The jewelry show attracted nearly 46,000 buyers, an increase of 9 percent from 2013, and the Diamond, Gem and Pearl Show, the first of the two shows, welcomed more than 28,000. The HKTDC reported a double-digit increase in Asian buyer attendance. As expected, traffic slowed markedly on the third day of the AsiaWorld-Expo show, as the main jewelry show in the Hong Kong Convention Centre opened its doors.
Despite worldwide market instability, Hong Kong’s export growth has continued its double-digit increases. According to government figures, in 2013, exports of loose pearls and gemstones totaled $16.6 billion, an increase of nearly 12 percent over the previous year.
The Diamond, Gem and Pearl Show — the first of the two shows — got off to a strong start with a heavily trafficked opening day where buyers with specific needs headed for major suppliers. By the second day, activity slowed somewhat, as shoppers took a closer look at the offerings — and prices — of diamond and gem exhibitors.
Exhibitor Leah Kraitenberg, Olympic Diamond, New York City, observed that the Hong Kong show in September 2013 “had half the number of buyers. This time, there were lots of buyers, new people and new connections.” Her customers were looking for all types of goods, she said, citing “buyers from South Africa and Europe, who wanted fancy yellows in cushion and emerald cuts. Asian shoppers sought white diamonds in 1-to-3-carat sizes.”
Gershon Rosenberg, Especka Diamonds, Antwerp, a specialist in parcels of small Russian diamonds, said most customers at this show were price-shopping. “People are looking for 10-to-50-point sizes and cheap prices.” However, he noted, buyers have had to accept price rises of 10 percent to 15 percent due to the shortage of nice-quality small goods on the market. “This year’s show is very good; the shortage of goods has caused a big demand,” observed David Sasportas, Akshar Impex, India.
Colored gemstone exhibitors maintained that steadily escalating prices of some gems have put no damper on sales. For example, Michael Hakimi, A. Hakimi & Sons, New York, noted that although prices of fine rubies, his company’s specialty, have risen an average of 15 percent per year, that hasn’t deterred buyers who want “the certified pigeon’s blood color, unheated or heated, regardless.”
At the Omi booth, a Los Angeles loose stone dealer, the most in-demand gems were untreated sapphire and tanzanite. “The tanzanite market is escalating in China,” said Omi Nagpal, president. “Chinese buyers still want unheated sapphire but tanzanite is a better look and costs less. Overall, the Chinese market is an important one for all types of fine-quality colored gemstones.”
Stating that he expects a price correction on some popular stones, Sailesh Lakhi of Sparkles & Colors USA, New York City, noted, “Prices of tourmalines and aquamarines have almost doubled. Buyers are not accepting these prices, so I think that by Las Vegas, rough prices will come down.” On other goods, however, such as rubies and sapphires, the best is always in demand. “Good-quality material always sells,” Lakhi said.
As with the HKIJS, the majority of buyers at the first show were Chinese, but there also was a smattering of Australians, Europeans and Middle Easterners. Noting a surprising number of American buyers, Shai Golan, Y.L. Golan, New York City, observed, “I saw lots of American manufacturers and dealers at this show and I wondered, ‘Why not wait until Las Vegas?’” JCK Las Vegas is scheduled for May 30 to June 2.
At the Hong Kong Convention & Exhibition Centre in Wanchai, the second of the “two shows, two venues” saw robust participation with more than 2,300 exhibitors from 43 countries and regions. Exhibitor sentiment at the HKIJS was generally positive, although not overly enthusiastic. Exhibitors of diamond goods reported that business was “okay,” with some more positive than others. Yet all acknowledged the importance of the March event for showcasing new products and designs, connecting with existing customers and meeting prospective clients.
Lawrence Ma, founding president and chairman of the Diamond Federation of Hong Kong, was positive in his outlook for the show and diamond business in general. “The March show is one of the most important shows, especially given the timing at the beginning of the year to lead the year off. Looking at it from a macroeconomic perspective, the signs are not bad,” Ma said, pointing out that the U.S., European and emerging market economies have improved and consumer purchasing power continues to increase in China. “In the bigger picture, there is good demand,” he said.
“The most important thing is that most buyers come to replenish what they need and they always want to see new designs and new things. All the manufacturers bring their newest designs to Hong Kong to show their customers,” Ma added. “The people at the high end of the market may not have felt the demand yet, but in the mass market, it is slowly being noticed. All of the buyers I spoke to want to buy something.” For more on an exclusive interview with Ma conducted at the show, see Hong Kong market report on page 68.
Kenneth Chan, director of Edelweiss Jewellery Company, a Hong Kong manufacturer and wholesaler of diamond goods, said the show is very important for them. “It is a good indication for us to see what we will plan for the rest of the year and the coming shows.”
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| Dehres |
Smaller, less expensive diamond goods were popular with buyers. “Customers are more price conscious than last year,” Chan said. “At the September show, more expensive items were selling, for example, in the $50,000 to $100,000 price range. But this time, customers are buying smaller items in small quantities. We had a lot of unexpected interest in smaller, fashionable diamond rings, in particular from U.S. and European customers,” he continued, saying that, based on this response from buyers, the company will focus more on this market segment for the rest of 2014.
Simon Zion of Dehres Limited, Hong Kong, confirmed that high-end one-of-a-kind jewelry was not selling. “The market is slow for very high-end goods,” he said. “The larger, more important stones are slow, but we display them so that buyers know what we can offer. Our customers need to see what’s new and prospects need to see what we can do for them.”
Hong Kong designer Payal Shah, director and founder of L’Dezen Jewellery Company, who specializes in handmade one-of-a-kind pieces using diamond slices set in yellow, rose and white gold, said having a presence at the show is a must. “The show is important because you never know who you will meet. We have repeat customers who restock, but as a relatively young company — three years in business — it is an important place to make new connections. Overall, for me as a start-up, I see it as a crucial part of the business to establish my brand and show off new products.”
Despite the increased numbers of exhibitors and buyers accommodated by splitting the show between two venues, one on either side of Hong Kong harbor, some exhibitors said the new arrangement did not help sales. Their complaint: It was too difficult and tiring for buyers to divide their time between two venues and it decreased traffic at the jewelry show.
For most of the suppliers and manufacturers in Hong Kong, the rest of the year will be busy. After a large presence at the Basel fair, followed by a stop in Vicenza, the next big international show will be Las Vegas, where they will work with their major American customers. They know price, selection and quality will be on everyone’s minds, and they are concentrating on what their U.S. clients want most: diamond bridal and fashion jewelry and volume-priced colored gemstone designs, as well as loose diamonds, gems and pearls.Article from the Rapaport Magazine - April 2014. To subscribe click here.
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