Hong Kong Gem & Jewellery Shows: double the power

May 2014


By Tasha Unninayar

The Hong Kong Trade Development Council (HKTDC) inaugurated a new program this year of dividing its annual show into two separate entities: the new Hong Kong International Diamond, Gem & Pearl Show and the 31st edition of the Hong Kong International Jewellery Show.

Hong Kong Gem & Jewellery Shows: double the power
The opening of HKTDC’s “Two shows, Two Venues.” The combined shows featured more than 3,850 exhibitors from 53 nations, making it currently the world’s largest gem and jewellery show.

With its “Two Shows, Two Venues” approach, spread over a combined surface of 123,000 square meters, the dual jewellery and gem events attracted 3,850 exhibitors from 53 nations, making it now the largest show in the world. Nearly 46,000 visitors attended the Jewellery Show, an increase of nine percent over 2013, while the Diamond, Gem & Pearl Show drew more than 28,000 buyers, for a total attendance of more than 74,000 people from 145 countries and regions.

Hong Kong Gem & Jewellery Shows: double the power
Left : Sapphire (4.07ct) and diamond ring by Khan Jewellery, the latest in the stable of Aspire brands.
Right: Emerald, ruby, and diamond earrings by Entice KGK.

“Both the Diamond, Gem & Pearl Show and the Jewellery Show have been very successful,” said Benjamin Chau, HKTDC Deputy Executive Director. “In addition to setting a buyer attendance record at the International Jewellery Show, the number of buyers from Asia, namely the Chinese mainland, India, Taiwan, and Thailand, also recorded double-digit growth. And, traditional markets, such as the United States, Germany, Italy, and Belgium, also grew significantly. The results are very encouraging.”

Hong Kong Gem & Jewellery Shows: double the power
Left: Diamond and gold ring by Peter Lam.
Right: South Sea golden pearl and diamond bracelet by Jewelmer

Two Shows, Two Venues

The International Jewellery Show was held at the Hong Kong Convention and Exhibition Centre (HKCEC) from March 5 to 9, and featured a very structured and distinctive layout. The jewellery was well classified and allocated to special Halls of Focus, depending on the type of jewellery and its origin. Due to the success of last year’s trial run of the Small Order Zone, it was brought back, and in a more convenient location, right at the entrance. This special zone catered to the needs of smaller market purchases of quantities ranging from 1 to 1000 items.

Hong Kong Gem & Jewellery Shows: double the power
Gemstone, diamond, and gold rings from the Heritage Collection by E&V Jewellery.

The Hong Kong Diamond, Gem & Pearl Show took place near the airport at AsiaWorld-Expo (AWE) from March 3 to 7. It featured 1500 exhibitors from 36 countries and regions, including nine group pavilions and five trade organization pavilions. It also included two focused product zones: The Hall of Fine Diamonds (carat-size stones) and Treasures of Nature (precious gems and South Sea and Tahitian pearls).

“The HKDTC is very pleased to see the ‘Two Shows, Two Venues’ concept come to fruition,” added Lawrence Yung-Yi Ma, Chairman of HKTDC. “We had been discussing this for over three years, and when the opportunity finally came to have the two shows at the two venues simultaneously, we had to take it.”

Hong Kong Gem & Jewellery Shows: double the power
Left: Diamond and gold rings from the Lady Dream collection by B K Jewellery.
Right: Diamond and gold Year of the Horse bangle by Zorab.

Chau noted that more than 90 percent of buyers surveyed considered the new arrangement better than last year for searching suppliers. And, the HKTDC is already planning on adding another hall at AWE next year. Chau went on to say that he anticipates the show to continue growing organically for the next three to five years.

Hong Kong Gem & Jewellery Shows: double the power
Colourful multigemstone and diamond pendant by Green G.

Among the exhibitors, the largest contingent was from Italy, with 215 companies and brands representing the jewellery and technology sectors. This year was the first for T-Gold, the technology arm of the VicenzaOro trade fair, to participate in the show. Its 45 exhibitors showcased a range of technical tools and equipment, perhaps indicating that the Italian industry does not really fear Asian competition. Corrado Facco, managing director of the Fiera di Vicenza, said, “The world is shrinking. We need to take the opportunity to build the industry together. We must promote the business globally, and form alliances.”

Hong Kong Gem & Jewellery Shows: double the power
Left:Cushion-cut Gachala emerald by Piat.
Right: Antique-cut mandarin garnet (103ct) by Constantin Wild.

With more than 2200 brands and manufacturers exhibiting at the jewellery show from 53 countries, you could find just about anything in terms of design— from simple silver or steel pieces to delicately crafted enamel, from exotic jade jewellery to luxurious diamond and gemstone creations, from antique pieces to futuristic designs. On these pages, we present a range of creative and saleable jewellery from the Asian region, at varying price points.

Buyers’ Market Views

An HKTDC-commissioned survey of buyers at the show revealed “more than 80 percent of buyers expect steady or increased turnover this year, while over 91 percent of buyers believe that jewellery retail prices will remain steady or increase. Asia remains the most promising market.” The survey also found that 66 percent of those interviewed are optimistic about the Chinese mainland jewellery retail sector and consider it to have the highest potential among the major markets, followed by the ASEAN countries.”

Most buyers (83 percent) consider product quality to be the most important factor for jewellery consumers, followed by design (80 percent), craftsmanship (79 percent), price (78 percent), aftersales service or warranty (75 percent), and branding (66 percent).

Regarding consumer purchasing behaviour, 81 percent of polled buyers believe that increasingly larger numbers of jewellery consumers will compare prices before committing to buy, while 70 percent predict that consumers will purchase smaller quantities. As internet usage grows, 67 percent of buyers questioned expect consumers to increase their online jewellery purchases and review potential products on the internet, including seeking opinions from social networks.

Hong Kong Gem & Jewellery Shows: double the power
One of the major announcements during the show came from Aaron Shum (left) and Kent Wong, Chow Tai Fook Managing Director, on the agreement to award Chow Tai Fook exclusive distribution in the Greater China region of Aaron Shum’s innovate patented Coronet design.

Hong Kong Market

Hong Kong’s exports of fine jewellery grew 6.5 percent in 2013, to reach US$7.3 billion. Main markets continue to be the USA and Europe with a total share of 48 percent. Imports of fine jewellery into Hong Kong rose during the same period by 3.3 percent to US$12.4 billion. Worth noting are increased exports to emerging economies such as the Middle East, Asia-Pacific, and the Chinese mainland. Despite a reported slowdown in luxury spending in China, the nation remains the world’s single largest luxury consumer with a 29-percent share of global consumption.

Hong Kong Gem & Jewellery Shows: double the power

Left: Colour change spinel (13.98ct) by Vitalii Golokoz.
Right: Tanzanite teardrops by AG Color.

As emerging markets enter the jewellery trade, competition for market share will increase, especially from the Chinese mainland industry, but Hong Kong designers and manufacturers are up to the challenge, declared Laurence Ma. “Hong Kong products have a unique appeal for China’s consumers of luxury brands. Our strength, the quality of our manufacturing and design, our long standing reputation for reliability and integrity, ease in communication, and expertise in financial arrangements are primarily what set Hong Kong apart. What also works for us is that Hong Kong is a main fashion centre, and young consumers with disposable income who are attracted to fashion now see jewellery as an accessory, rather than primarily as an investment.”

The next HKTDC show will be held in early March, with exact dates to be announced soon.

INTERNATIONAL MYANMAR PEARL AUCTION

While in Hong Kong, I had the rare privilege of being invited to one of the most exclusive pearl auctions in the world. After being handed a VIP badge, I was directed to a room where trays full of pearls awaited. As I walked past countless numbers of the round beauties, my attention was drawn to a remarkable strand of golden pearls. -ese elusive Myanmar golden pearls are hypnotic.The lustre is deep and silken, evoking a setting sun dancing over the ocean’s waves.

Hong Kong Gem & Jewellery Shows: double the power
Trays of pearls, including remarkable golden pearls, were auctioned at the 2nd International Myanmar Pearl Auction during the Hong Kong show.

This event was only the second time in history that these pearls have been made available for sale outside of Myanmar, thanks to the forward thinking of the Myanmar Pearl Enterprise (MPE), which is the Myanmar government arm representing the pearl industry, and the efforts of the Hong Kong-based pearl trading firm, Belpearl.

In business more than 40 years, having started as pearl traders in Japan, Belpearl began buying from farms in Indonesia and Tahiti. Later, it travelled to Myanmar, where the company developed a good relationship with the MPE, which held two auctions a year in the nation. Since buyer attendance was declining, the MPE asked Belpearl for help in reaching the international market. Belpearl’s expertise with auctions, its extensive contacts in the industry, and the company’s presence in Hong Kong resulted in the first Myanmar Pearl Auction in Hong Kong in 2013. “People could not believe what they saw,” said Pierre Hajjar, President of Belpearl. “The collection of Burmese pearls was very impressive, and included a remarkable 19-mm round, awe-inspiring golden pearl.” His son, Michael, added that many traders believe Myanmar produces the finest non-white pearls, for a number of contributing factors. “About 50 percent of Myanmar’s pearls are deep gold, almost like copper, while 20 percent are light gold,” he explained, remarking that prices of the golden globes have been trending upwards, with much of the demand driven by Chinese buyers, who appreciate the deep golden varieties.

The Myanmar government restricts the number of pearl farms, and currently there are only nine in the country. The farms are required to practice responsible and sustainable stewardship of the pristine environment. They may not even cut down trees, according to a representative of the MPE.

www.myanmarpearl.com

www.hktdc.com