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Sightholders Descend on Tokyo
Mar 7, 2005 10:59 AM
By Kazuko Ito
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One of Japan’s leading jewelry trade shows, the International Jewellery Show Tokyo (IJT), was held at Tokyo’s Big Sight exhibition halls from January 26 through January 29. Those attending included 1,338 exhibitors from 33 countries and nearly 35,000 visitors, the largest numbers that IJT has recorded since its inception in 1980. “By size, IJT has grown as big as the Vicenza show in Italy,” said Yasuhiro Fujimura, a long-time market observer.
The space allocated for Diamond World this year was nearly twice as large as last year’s. Among the exhibitors were 32 sightholders, representing the world’s cutting centers, brought together by the Diamond Trading Company (DTC). The IJT is the only jewelry trade show where this magnitude of sightholders gets together under one roof. Most of the sightholders attending had also participated last year. In addition to sightholders, two mining companies, Russia’s ALROSA and BHP Billiton from Canada, participated in the show for the first time.
A Lot of Buzz
Last year, when the large number of sightholders showed up for the first time, Japanese trade members were not only in awe of the sightholders’ financial strength but feared that their downstream marketing strategy led by the DTC would wipe out their businesses. “The fear has subdued this year,” said Fujimura, “as they have learned that most big players had already been buying from a number of sightholders and that not all the sightholders are threats.” It now appears clearer that sightholders have strong alliances with world brand houses or with local Japanese companies. “The show this year was very upbeat. With so many sightholders and mining companies participating, IJT may become the center of buzz or hub of Asia for years to come,” said Fujimura.
And this is exactly what Reed Exhibitions Japan Ltd., the organizer of IJT, intended. For the 2005 show, IJT specifically invited the heads of jewelers and chain stores from Korea, Taiwan and other Asian countries to the tape-cutting ceremony on opening day. “And they showed up in a bunch,” said Kaoru Iwata of Reed Exhibitions. “Hotel rooms that IJT reserved for the visitors were all booked two weeks in advance and we had to book extra rooms,” commented Iwata. “Tokyo is much more convenient for Asians to travel to than Basel or Vicenza.”
On the jewelry exhibitors’ front, Italian and German companies in particular demonstrated strong showings, attracting large number of visitors. Also prominent were their backup supports, such as the Italian Trade Commission Tokyo and the embassies of the exhibitors’ countries. Asian manufacturers did well, too. Hong Soowon, president of g.graffiti from Korea who exhibited at IJT for the first time this year, was quoted as saying: “I tried exhibiting at the Hong Kong fair, but most of the buyers there found my pieces too expensive. But some Japanese buyers placed orders. The Japanese market seems more sophisticated.”
Cash Tradition
At its inception 15 years ago, IJT was somewhat shunned, as it looked more like a marketplace than a trade show. Exhibitors brought their merchandise and visitors made purchases on site with cash. “There was no way of identifying private consumers who buy on site,” recalled Fujimura. “Trade members feared that this kind of transaction denigrated the prestige of the trade show, disturbing distribution channels and hurting supplier/retailer relationships.”
This tradition still continues, however, and it is one of the most attractive characteristics of the IJT that deals are done on site with cash. Exhibitors list their “sale of the day” in the IJT’s brochure and millions of yen change hands during the four-day show. “Another reason IJT prospered is that people come to know that this is the place good deals are made,” said Iwata. Along with making cash deals, exhibitors and visitors at the show were busy making appointments every half an hour and placing orders.
“ALROSA is very intent on exploring the Japanese market,” said Iwata. ALROSA sent a 20-member delegation that included three vice presidents. In addition to a booth at the show, ALROSA invited industry leaders to a presentation and two parties during the show. “In the future, BHP Billiton would like to have a hall where their clients would exhibit collectively, just the way DTC does,” said Iwata.
It appears very unlikely for Japanese companies to buy rough diamonds from these mining companies. “It is not the Japanese companies who made the move. It is the mining companies who moved. They are trying to sell polished first and perhaps in the future go into retail operations,” said Yutaka Fukasawa of Japan Precious magazine. “While the Japanese economy has not yet fully recovered, it is a mature consumer market.”
The booking for the IJT 2006 show has already begun. By the number of applicants, it will be an even bigger show than IJT 2005.
MARKETPLACE
- Larger than 2-carat stones are scarce in the marketplace, but demand has subsided.
- 4/4 in H+/SI-I1 are moving steadily. Prices are firming.
- Pointers, catering to the bridal market, are showing steady demand and steady prices. 1/10 and quarters are strong, with three-stone rings in demand.
- Princess cut demand is steady and prices are firming.
- Capes demand is slow due to price increase.
- Pink stones are in demand and prices are steady.
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Tags:
Alrosa, BHP Billiton, Consumers, DTC, Economy, Exhibitions, Hong Kong, Japan, Jewelry, Mining Companies, Russia, Sightholders, Trade Shows
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