IDEX Magazine - Full Story

By Danielle Max

At the end of the September Hong Kong Jewellery and Watch Fair, the general consensus seemed to be that the show had performed in line with expectations.

However, with the worrying financial situation and generally slow market conditions, expectations were none too high.

Image courtesy of Cmpasia Ltd.

In general, smaller goods � much in demand in the local market � shifted well, while larger items were extremely sluggish. Emmanuel Landau, senior partner in Exelco, said there was a need for a price correction on bigger sizes. �We have to wait to see how the miners are going to react. We�ve already heard from the DTC that they are going to be firm on the price of rough [diamonds],� he said. �The big firms that can afford to hold on to their larger goods will keep them in their inventories, but the smaller firms will have to sell them relatively cheaply to pay the bills.�

Landau said that low colors and commercial and cleanish goods had been moving relatively well. �It�s still a question of price. Smaller dossier goods have been good, 1 to 3 carats have been a little weaker while upwards of 3 carats have been on the slow side.� He noted, however, that there was still good demand outside of America and Europe.

One of the main talking points at the show was about show management�s plans to consolidate all of the diamantaires at the unpopular Asia-World Expo (AWE) out by the airport in 2009. For the last two years, the September show has been divided between the AWE and the Hong Kong Convention and Exhibition Centre (HKCEC), which is regarded as the stronger of the two locations, and most manufacturers are reluctant to change to the other venue.

From next year, CMP Asia Ltd has decided that the show will be divided according to �product sectorisation.� This means that finished jewelry will be showcased at the HKCEC while the AWE will display raw materials such as machinery, pearls, gemstones and diamonds.

There is some talk by those who feel that they are being relegated to the AWE of boycotting the event altogether. Others feel that it will take only one try of the new format for show organizers to realize what they believe to be a huge mistake and return to the current format.

Show organizers say the new plan will concentrate similar sectors of products of the same value to �enable buyers to source the products they seek efficiently, while exhibitors can meet their target buyers intensively. Both venues will consequently be equally successful for their participants and visitors, and will posses the same importance,� they claim.

This year, however, many of those at AWE were complaining of less than stellar business. Stranded at the outer reaches of the exhibition pavilion at AWE, a Belgian exhibitor, wishing to remain anonymous, admitted that the booth had not had a single customer. �Compared to the June show, the situation is very bad,� he said. �There is a complete lack of foot traffic.� Those who were making enquiries, he noted, were asking for prices far below any margins the company could live with.

First-time exhibitor Isaac Davidowits, however, said that he was generally satisfied with the state of the show. His company, which specializes in manufacturing cushions and asschers, had mainly sold goods 1 carat and up, SI and up. Shape-wise, he said, the greatest interest had been in pear shapes, emeralds and especially in rounds.

Bhavani Hong Kong Ltd was located prominently in a large booth near the entrance, making the company very hard to miss. Manager Tushar Jhaveri said he had been receiving a lot of enquiries, as well as some sales. �I wouldn�t say it�s good, but it�s going well,� he said. �Because of our name, people come over. We also generally ask for appointments in advance, so we know who is coming, although we also have a lot of walk-ins.�

One surprising development, he observed, was the large number of Australian buyers who had been coming in, leading to expectations of a strengthening market in that country. Jhaveri said that he had noticed the most interest in certified goods from 0.30 to 0.90 carats, VVS to VS2 and D to J in colors. Diamonds of 1 carat had also been popular. The company, he noted, had surpassed their sales targets. In addition, many people had reserved goods on the first day of the show and had actually come back to purchase them, much to his relief.

Unlike others who object to their positioning in AWE, Jhaveri was philosophical. �Because there�s not as much competition here, it is easy to unload goods at reasonable prices.� He says he is looking forward to all the diamond companies being concentrated together. �Competition is a good thing. More companies mean more buyers and new clients.�

Back at HKCEC, DTC Sightholder Dalumi was using the fair to depart from its usual approach of presenting seasonal lines to launch its patented diamond �Swana,� According to Senior Sales Manager Ohad Hecht, the 89-faceted diamond and its jewelry line was in high demand.

The diamond, which takes its name from Botswana to emphasize the company�s link with the southern African country where it holds a Sight, is a modified round brilliant and features an internal star shape. The Swana brand, which is not being promoted under the Dalumi name, is aimed at the bridal market, Hecht said. All of the jewelry that it is used in features the diamond�s star element. The Swana diamond is from 30 points up to 1 carat in size, J to G in color and VS to VVS in clarity.

Initially, Dalumi plans to promote the brand in China and Europe. Hecht noted that the company was already in advanced negotiations with retailers in China and the UK and that the response at the show had been very positive. �This is by far the most important show for us,� he said. �Everyone is coming here not only to see trends, but also to close deals. Everyone knows that the market is soft but we are well diversified in many markets so that just because things are soft in one place, doesn�t mean that it is true everywhere.�

Up to the end of the show, diamantaires were busy trying to finalize deals and salvage what they could of a show that for some has been at worst a disappointment and at best in line with their low expectations.