The mood in the Israel Diamond Exchange (IDE) remained fairly subdued in the weeks that followed the JCK Las Vegas show, as trading activity brought mixed results for more than 60 Israeli companies that exhibited at the event.
“The show came at a good time as the mood in the bourse hasn’t been great for a while, mainly due to a lack of profit,” said Shmuel Schnitzer, chairman of diamond supplier S. Schnitzer and president of the Israel Diamond Institute Group of Companies (IDI). “We were happy with the show as we saw interesting buyers and feel U.S. retailers are gaining confidence again.”
Despite that improved confidence, buyers at the show limited their orders and operated with lower budgets, reported one polished dealer who requested anonymity. “Retailers have the upper hand because they control their inventory,” said Orit Samet, CEO of EZ Diamonds, a supplier of small excellent-make round diamonds from .01 carats to .75 carats. “My feeling is that their inventory is not as low as we think. We need them more than they need us.”
Most dealers who spoke with Rapaport Magazine observed lower visitor traffic at the show, adding, however, that those who came were more serious buyers looking to fill specific orders.
FOLLOW-UP
Samet stressed that suppliers who prepared for the show by making appointments in advance had a successful few days, whereas those who relied on meeting buyers simply from traffic struggled, given the lower number of attendees. Many of EZ Diamonds’ jewelry wholesale clients were exhibiting at the Luxury show and were therefore too busy to meet during JCK, Samet noted. “They’d appreciate it more if we came to the U.S. to meet with them later in June as the show is a selling time for them, rather than a buying opportunity,” she explained. “By then, [jewelry wholesalers] also have a better idea of what they need, having taken orders from retailers at the show.”
Schnitzer agreed that buyers usually place orders after the show and emphasized the importance of following up on meetings they had during the exhibition. He expects that the larger retail chains will soon make their program orders as they start planning for the Christmas season, while independents are also thinking more strategically than they did in the past.
“Retailers have gotten used to the changes taking place in the industry,” Schnitzer said. “For example, before, they felt the impact the internet was having on their business, and today, they’re selling more online or doing more marketing activity online. It took some time, but I feel we’re moving in the right direction,” he added.
START-UP EXCHANGE
Meanwhile, the IDE is hoping to facilitate greater innovation in the diamond industry by opening a technology incubator for local and international diamond-related start-ups. The “Diamond Tech Innovation Center” will provide the office space and financial support for relevant start-ups in the initial stages of development.
The center will promote new technology for diamonds applicable to gems and jewelry as well as those using diamonds in industrial platforms, robotics, semiconductors, medical technologies, space technology, software, finance and marketing platforms, the exchange explained.
“We are convinced that the diamond industry must advance technologically, said Yoram Dvash, president of IDE. “Since Israel is a world leader in technology — with over 1,500 new start-ups established every year — we are in a perfect position to take the lead in this.” He added, “IDE will invest all of its resources to ensure the success of these start-ups and their contribution to the diamond industry.”
The exchange has partnered in the project with Sarine Technologies, a provider of equipment to diamond manufacturers, and rough brokerage firm Hennig & Co., which has an investment arm specializing in diamond technology. The Technion – Israel Institute of Technology, a university in the Israeli city of Haifa, is also a strategic partner for research and development. The project is applying for recognition and support from the Israel Innovation Authority, which funds start-ups and technological hubs.
Article from the Rapaport Magazine - July 2017. To subscribe click here.