Firms Diversify to Beat Hong Kong Slump

Exhibitors at the Hong Kong Diamond and Watch Fair said they found that diversifying their goods allowed them to circumvent the economic crisis that has kept many buyers away.

DTC Sightholder Dalumi is 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 the jewelry in which it is included 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 a star shape internally.

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.”

Exhibitors said that traffic in the Fine Design Pavilion had been noticeably slower throughout the show. Emerald specialist Joseph Gad, however, said that he had not been suffering from a lack of buyers.

“Perhaps because there are much fewer choices for those wishing to buy emeralds compared to diamonds or pearls,” Gad said, noting that he had been continuously busy. “The first day was phenomenal,” but then it usually is,” he added. “The majority of customers have been local Indian retailers, but I’ve also opened up a couple of new accounts.”

Tarang Arora, who was representing the celebrity favorite jewelry firm Amrapali in the Fine Design Pavilion, said that he was disappointed by the show.

“It hasn’t been as spectacular as usual,” he said. “It generally picks up on the third day, but that hasn’t happened this year.” Arora noted, however, that the firm’s other booth, which sold jewelry starting at $300, and significantly below the Pavilion’s high-end goods, was doing better. 

Arora said that a number of the customers he had seen were looking to buy his company’s Indian-inspired jewelry as an investment proposition. “Everyone has been talking about Lehman Brothers, and now people are beginning to talk about investing in diamonds,” he said.