HK Show Draws New Buyers

Organizers of the Hong Kong International Jewellery Show took measures to ensure that there is continued growth in exports.

The latest edition of the Hong Kong International Jewellery Show, held from March 4 through 8, drew a record 2,349 exhibitors from 46 countries and regions and attracted approximately 30,000 buyers. Overall attendance was down by 5 percent, but the number of local buyers increased by 11 percent.

The annual trade fair was organized by the Hong Kong Trade Development Council (HKTDC) with sponsorship from four of Hong Kong’s leading jewelry trade associations. Participants ran the gamut from packaging suppliers and loose pearl dealers to high-fashion jewelry designers, all aiming their output at a world market, albeit one that is rapidly contracting.

Generally, Chinese manufacturers maintained a stoic outlook, saying they are concerned about the ongoing economic crisis in the U.S., their major market, but will continue to offer value-priced, innovative goods and services in an effort to hold onto their customer base and attract new customers in new markets. In 2008, Hong Kong, one of the world’s premier jewelry exporters, sold $4.75 billion to the U.S., an increase of 10 percent over the previous year. So far in 2009, however, export figures have been falling. In January 2009, for example, international exports totaled $273 million, a 30 percent decrease from the same month in 2008.

Unlike past years, when the show’s exhibitors happily noted increased sales to emerging markets such as Russia, Mainland China, Japan and Europe, growing financial problems in these countries have slowed the pattern of growth. Emerging markets were a major emphasis by the HKTDC, which used some of the $18 million in additional government funding for trade development that it recently received to promote the show and solicit attendees from these areas. While no actual sales figures were available for these geographic markets, show organizers maintain that expanding the customer base to new areas is necessary to assure continued growth in exports.

New Customers

The overall emphasis of this year’s event was on “new designs and exploring new areas to reach customers,” said Lawrence Ma, chairman of the Jewellery Advisory Committee and the Fair Organising Committee. The show’s continued expansion into new product areas was evidenced by several new pavilions. They included the Hall of Fame for international brands, the Treasury of Carving zone and Antique and Vintage Renaissance. The results of the International Jewellery Design Excellence Award (IJDE) 2009, the South Sea Pearl and the 10th Hong Kong Jewellery Design Competitions were also on display at the show.

At the same time as they recognized innovative design, manufacturers do not consider this a time for wild innovation, they said, but rather a time to focus on salable materials, merchandise categories and price points. That being said, diamond and gemstone jewelry dominated the exhibits, from bridal goods to mountings to finished pieces. Men’s jewelry made a more aggressive appearance, as did lighter-weight fashion styles aimed at younger women or self-purchasers.

Among the strongest trends were figurative, nature-inspired designs such as flowers, butterflies and reptiles, colored diamonds contrasted with white diamonds and pastel-colored gemstones accented with diamonds. Also featured were large cocktail rings, fashion necklaces using a variety of different-shaped diamonds, increased use of alternative metals, such as titanium and steel, and pleated, wrapped and origami-type designs encrusted with diamond pavé.

A new company exhibiting at the show for the first time was NTG Ltd. a Hong Kong–based manufacturer founded by Nicola Santini, the son-in-law of the former owner of Princess Pride Creations. The company produces a line of lockets aimed at mass-market retailers and independent jewelers. Its newest innovation — a musical locket — met with great interest at the show, said Santini, NTG’s president. On the first show day, the company received orders from the U.S. for 150,000 pieces in sterling silver and another order from Australia for 10,000 pieces.

Pippo Perez, an Italian designer who works in partnership with KTL, an established Hong Kong manufacturer, unveiled a new collection of oversized “apple” rings in rubies, black and white diamonds, as well as nature-inspired ensembles of starfish and penguins in black and white diamonds.

Aaron Shum Jewelry Ltd. reported strong reaction to the company’s patented Coronet setting, in which six smaller diamonds frame an elevated center stone, making it appear larger and more brilliant. According to company sales reps, this innovative setting can cost as little as one-tenth the price of a comparably sized single diamond. Most popular diamond grades are G to H in color, VS2 to SI1 clarity; bestselling center stones are usually under a half-carat in size.

WCJ International Ltd., Hong Kong, reported continued success with its trademarked Mycrology micropavé technique that sets stones under microscopes in each stage of the production process for more precise, uniform settings. WCJ Director and Chief Operating Officer (COO) Gladys Do said overall market conditions continue to be slow, with most buyers opting for fairly conservative designs. The company introduced City Chic at the show, a fashion assortment in 18-karat yellow gold with diamond accents that is aimed at younger customers, with prices in the $200 range. The company is stressing middle price points to allow customers to expand their purchases, Do said. Diamond qualities are usually G, VS or SI.

Diamonds Cause for Concern

Diamonds, the focus of many lines, are nevertheless a concern to many. The world diamond market is in turmoil, dealing with a series of unusual problems, not the least of which were the recent rise and fall of prices, observed Isaac Musighi, president, Pacific M. International (PMI) Corp., Los Angeles. “It’s a crisis of confidence in business and in the market,” he said. “People are scared about where to put their money.”

Everyone wants D-flawless diamonds in 5- to 20-carat sizes, Musighi went on to say, and they can’t be found.

He showed a list of requests from buyers that he was having difficulty filling. PMI’s collection of natural colored diamonds was considerable, and Musighi said many more of these rarities are coming into the market, put up for sale by owners who are strapped for cash.

Article from the Rapaport Magazine - April 2009. To subscribe click here.