RAPAPORT... Within the brief space of a ten-day period starting February 27, five jewelry shows were held in the region — in Bangkok, Shenzhen, Macau, and two in Hong Kong. The last and largest of these is the Hong Kong International Jewellery Show, scheduled March 4 to 8. Organizers of the other shows tried a variety of measures to attract both exhibitors and visitors to visit their venues first.
Starting from February 28, organizers of the Macau International Jewellery & Watch Fair were offering booths at a discount just to fill the space and promoting the fact that they would be inviting 100 of the wealthiest consumers in the region to attend. The same promises had been made for the January jewelry show in Macau, but attendance at that event, the first to be held in Macau, was disappointing. Will this one be different?
Promoting the shows is complicated by the fact that there are so many — Macau alone has four scheduled in 2008 — and by the fact that some of the venues, such as Macau, are new and have not yet built up an audience. Buyers, who have very busy schedules and usually pencil in their planned trips months in advance, tend to visit the major shows, especially those they already know well.
Exhibiting in a show that precedes a major show is not usually an advantage for exhibitors, either. They might think that they will grab the lion’s share of sales before the other shows but, in reality, buyers usually visit an early show to window-shop and get their bearings. Unless they find a desperate exhibitor at the earlier shows who will sell cheap, buyers often prefer to see what is being offered in the later shows and do their buying then.
Leave Well Enough AloneIn the Hong Kong International Jewellery Show in March 2006, the Hong Kong Trade Development Council (TDC) was brave enough to turn Hall 5 into a diamond hall, which proved to be an immediate success. The decision dramatically increased the business of the exhibitors and buyers were happy.
That example was followed by CMP Asia, organizer of the June and September Hong Kong Jewellery & Watch Fairs in 2007, and its similar success affirmed the idea that having a hall designated to diamonds works. In fact, it worked so well that even when the diamond hall was moved to a refurbished basement parking area, it was successful.
For this year’s March Hong Kong International Jewellery Show, TDC is planning a floor exclusively for Suppliers of Choice (SOC) sightholders, calling it Les Salons Privés. The only problem is the company is limiting the number of exhibitors on that floor to ten; as a result, not all the major diamond houses can be accommodated. Many of the big diamond companies have preferred to stay in the popular Hall 5 anyway, since that is where the action is.
In setting aside exclusive areas for designated groups, the TDC is trying to emulate its successful establishing of fine jewelry pavilions at its other jewelry shows, but there are some differences. The fine jewelry pavilions were set up in the access corridors between two important halls, one of which was Hall 5. The visitor traffic was, of course, excellent and exhibitors in the fine jewelry pavilions did extremely well. But, the SOC floor venue is mainly conference space and meeting rooms, and even if its location is well publicized, it is still out of the way.
The Bigger, The BetterHong Kong has been attracting more beleaguered diamond merchants as markets in the U.S. and Europe become more difficult. Imports into Hong Kong have surged and, with the advent of all the jewelry shows, even more imports will continue to come in. It does not necessarily mean that business is booming in Hong Kong, but only that there is more business than in the depressed U.S. and European markets.
Hong Kong buyers have become more selective as they are spoiled with choices and play one supplier against the next. Although there is a flood of goods, not all of what is coming in is selling well. Certain qualities that are in regular demand in Hong Kong continue to be scarce. For example, there is a constant demand for high-quality stones in large sizes from 3 carats and up. It seems that 10 has become a magic number when it comes to diamonds — there is a constant demand for 10-carat diamonds but they are seldom seen on offer. Even though the premiums for these large stones continue to be high, buyers tend to grab them. They are not going to pay a ridiculous price, but when the price is reasonable, deals are quickly struck.
Christie’s is planning to auction a 101.27-carat, kite-shaped F/VVS1 diamond on May 28. This will be a first for Hong Kong to sell a diamond of such size and quality at auction and is further evidence of this area’s importance in the world market.
The Marketplace• The wholesale market was relatively quiet after the Chinese New Year because most suppliers had not yet returned from the holiday vacation.
• Demand is good for 0.30 to 0.70 carat G+/VS+.
• Larger stones in 1 carat+/VS+/H+, GIA certified and fine make, continue to sell well.
• Inexpensive jewelry and promotional items, such as rings and pendants with small diamonds, sold well for Valentine’s Day.
• Mouse-themed jewelry and the Year of the Mouse gold bars are popular.
• Platinum jewelry prices surged after South African mining companies were asked to reduce production to 90 percent of capacity in response to the shortage of electric power in the country.
Article from the Rapaport Magazine - March 2008. To subscribe click here.