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Hong Kong
By Mary Kavanagh
A slow July has given way to a “booming August,” according to Sally Ryder of Ryder Diamonds. Business is traditionally quiet in July, she said, noting that this year the month was slower than usual, but “there has been a huge pickup since August 1, which has been quite the surprise.” Ryder’s main area of business is custom-made engagement rings, but she also designs and manufactures jewelry for special occasions such as birthdays and anniversaries. She has seen growth across all areas, but especially in demand for diamonds as so-called “push presents” — gifts for new mothers. “It has become quite a strong tradition in Hong Kong, not only with expat clients, but also local clients, and this is a business area we are focusing on,” she said. There also has been a sharp rise in demand for old mine cut diamonds, Ryder said. “We have sold numerous old mine cuts in the past few months whereas prior to this we had not sold many,” she noted, adding that customers were not put off by the fact that these stones are very difficult to find and also very expensive.
Shortages exist in the market for certain kinds of stones. “I am finding that dealers who had huge inventory not that long ago have nothing we want at the moment,” said Ryder, who works predominantly with diamonds in the 1-carat to 3-carat size. She recommends these stones to her customers because she considers them beautiful and good value for the money — especially SI1 stones with excellent cut. “We are having to find new trading partners to get the stock that we are looking for,” she said. Vincent Yiu, director at Brilliant Trading Company (BTC), a diamond manufacturer, wholesaler and retailer, said that all the stock in Hong Kong had been purchased in recent weeks by a large local retailer, an indication that the market is picking up. There is a shortage of “1-carat to 2-carat stones, D to H color and 1-carat triple EX for consignment work and 3-carat D to F, VS to SI goods also,” he said. In addition, he noted that large Hong Kong retailers are stocking up on 30-point and 40-point diamonds due to their favorable prices and many are buying big quantities of these sizes from India. According to Celine Lau, director of jewelry fairs at UBM Asia Ltd., “There is always a shortage of collectors’ items,” but the jewelry fair in Hong Kong in September will provide “a perfect platform for the collector because the fine design pavilion will provide one-of-a-kind products.” Ryder said the fair “is a great buying opportunity for me when I am looking for rare stones because all the dealers have their stock on display and I can see what is available.”
The organizers of the three annual international jewelry fairs in Hong Kong are optimistic about the future. UBM Asia Ltd, organizers of the June fair and the Hong Kong Jewelry & Gem Fair, scheduled for September 11 to 17 in 2013, has increased the space available for exhibitors this year to accommodate some of those who have been on their waiting list. “In September, we will move the jewelry pavilion to the convention hall so we can serve more than 60 exhibitors, which is double the size of 2012,” said Lau at UBM. They will also launch a new fair mobile app “to provide a service to better match exhibitors and buyers and help them communicate with each other more easily,” Lau said. There has already been “very strong demand for space from exhibitors for the 2014 June show so this is another good indication for us.” Tony Ma, media relations executive at the Hong Kong Trade Development Council (HKTDC), said they are seeing continuing growth in the export and import of jewelry and recently announced the expansion of their annual March fair. “Given the compelling demand for exhibition space, HKTDC will split the jewelry show into two shows at two venues in 2014.” One show will focus on finished jewelry products and the other will focus on loose stones and raw materials for the trade.
The Hong Kong government has raised its estimate for full-year economic growth after the economy expanded more than estimated in the second quarter, Bloomberg News reported. The economy expanded 3.3 percent from 2012’s second quarter and the new estimate for growth is 2.5 percent to 3.5 percent compared to the 1.5 percent to 3.5 percent estimate released in May. Household spending rose 4.2 percent, boosted by an increase in tourists from China and an unemployment rate that’s been below 3.6 percent for the past two years. It remains to be seen whether the positive growth can help boost the flagging popularity of Chief Executive C.Y. Leung, whose support rating recently sank to its lowest level since he took office in July 2012, according to a survey conducted by the University of Hong Kong’s Public Opinion Program.Article from the Rapaport Magazine - September 2013. To subscribe click here.
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