Rapaport Magazine
Markets & Pricing

Hong Kong


Quality outweighs quantity at shows

Jewelry events saw high-value sales and demand for finely crafted pieces.

By Mary Kavanagh
The overall mood at last month’s International Jewellery and International Diamond, Gem & Pearl shows was more upbeat than the past couple of years, and consumer confidence and purchasing power seemed higher. Vinnie Yiu of Brilliant Diamond Trading described the atmosphere as very positive, reflecting the price increase of polished diamonds and rough stones since the end of 2017.

“All overseas exhibitors were coming with very high expectations that Asian and mainland Chinese buyers were going to stock up after the Christmas season [and] Chinese New Year,” he said, noting that all dealers reported a shortage of new goods, as they sold quickly or had been preordered.

Eric Lai of United Jewelry Company commented that the timing of the shows, very soon after the Chinese New Year, had possibly resulted in fewer visitors from mainland China.

“The show was a bit slow because many buyers were still on holiday, especially the ones from East Asia, and some went only to the [Diamond, Gem & Pearl Show] at the [AsiaWorld] Expo,” he explained.

Ada Fung of Zuri Jewellery said it seemed there was better purchasing power this year. “We are seeing bigger orders and more requests,” she reported.

There was less traffic from mainland China, said Terence Wu of Foo Hang Jewellery, a high-end wholesaler, retailer, manufacturer and exporter, “but people are still buying, and the local market is doing better.”

Storied designs

As in the past couple of years, buyers were looking for new designs and unique pieces, according to Lai. His company specializes in high-end jadeite jewelry, a market segment that has been less significantly impacted by the economic downturn in recent years.

“People are always looking for new things, but jadeite is unique, and they want a good piece but a simple look. A very good piece of jadeite is wow in itself,” he added.

The importance of good storytelling and craftsmanship were two other key trends.

“People want the story behind the product, they are not only interested in the design of the product, but also the culture. Story and craftsmanship are key,” said Fung.

Yve Chan, founding director of Dawn, which also specializes in high-end jadeite jewelry, echoed the importance of craftsmanship: “Customers like to know the workmanship behind the piece, the techniques and skills used, such as engraving and so on.”

The manufacturing industry is evolving, paying closer attention to customer requirements, adapting its designs, brands and pricing, and diversifying into new sales channels both online and offline, according to Kent Wong, chairman of the Hong Kong Trade Development Council (HKTDC) Jewellery Advisory Committee.

Exhibiting strength

Despite the dip in visitor numbers, the March Hong Kong shows attracted a record 4,550 exhibitors from 52 countries and regions.

“This strong participation is evidence that the jewelry industry remains optimistic about prospects and sees Hong Kong as an important market platform,” said Lawrence Ma, president of the Diamond Federation of Hong Kong and chairman of the shows’ organizing committees.

Wong echoed this positive sentiment. “We are optimistic for the future. Exhibitors and visitors are happy and excited. We’ve been hearing from the retail sector in recent months that sales are up, so they are more optimistic about the future and willing to stock up,” he said.

Article from the Rapaport Magazine - April 2018. To subscribe click here.

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