Overview of the Event

As the prestigious Jewellery & Gem World Hong Kong show unfolds its annual spectacle, the economic headwinds facing China have cast a shadow over the event's success. While official attendance figures are still being compiled by Informa Markets, the bustling atmosphere typically associated with the fair was noticeably subdued this year. Exhibitors have openly voiced their concerns, highlighting a significant drop in attendance from mainland Chinese buyers—a crucial demographic that usually drives sales at this renowned venue.

Challenges Faced

The September 2023 fair, held at the AsiaWorld-Expo (AWE) from September 16 to 20, and the Hong Kong Convention and Exhibition Centre from September 18 to 22, faced several unfortunate circumstances that hampered attendance. A lingering real estate crisis in China, an unexpected typhoon in Shanghai that disrupted flight schedules, a national holiday colliding with the event, and stringent new customs regulations have all played pivotal roles in discouraging potential buyers from making the trip.

Exhibitor Insights

Loic Wiart, principal of Poe Black Pearl from Tahiti, shared insights into the apprehensions of Chinese buyers: “They were hesitant to import pearls into China, fearing potential losses, which led to a halt in purchases. Customs are imposing stricter controls, which adds another layer of concern for businesses.”

Sales Experiences

Vendors characterized the sales environment as challenging, exacerbated by high price points and cautious buyers. Sutra Jewels from Houston presented their high-end couture pieces but shared their reservations about the market's climate this year. “Asia is typically where high-quality gems find their home, but there’s been a shift. We had the same number of appointments as last year, but it’s much harder to close deals,” remarked Divyanshu Navlakha, co-owner of the brand.

In stark contrast, Smiling Rocks, a player in the lab-grown diamond sector, reported a different experience. Their representative, Kishwar Mehmood, noted heightened interest and solid sales. Buyers seemed particularly attracted to larger, colored synthetic stones, demonstrating a willingness to embrace design innovation rather than focus on fluctuating prices. “Pricing isn’t deterring our customers; they are more focused on the uniqueness of our designs,” she expressed.

While some sectors thrived, the overall landscape remained intertwined with lofty prices for colored gems and cultured pearls. Allen Kleiman from A. Kleiman and Company remarked on the difficulty of sourcing higher-quality rubies, while unheated rubies and sapphires continued to command exorbitant prices. “There’s simply no room left for prices to escalate further,” he added.

Meanwhile, pricing for fine Japanese akoya pearls remains steep, with recent auctions witnessing a price surge of 20% to 30%. According to Yuichi Nakamura, CEO of PJ Nakamura International, buyers are now more scrutinizing in their selections compared to the previous year’s event.

De Beers' Future Plans

Amidst the show’s activities, De Beers executives held their much-anticipated “Spotlight on De Beers Breakfast” on September 19. First among them, CEO Al Cook provided a stark overview of the declining market value of synthetic diamonds, asserting that this collapse has led them to reassess the role of lab-grown diamonds in their portfolio. “Producing lab-grown diamonds for jewelry has been a financial drain; we are pivoting towards producing them for technology instead,” Cook declared, garnering applause from attendees.

Clarity into De Beers’ future came with a reassured commitment to explore all sectors of the diamond industry, reinforcing that categorically focused marketing remains their priority. “We are in the process of reinventing De Beers to ensure we add sustainable value across the board,” Cook concluded.

Conclusion

In these trying economic times, the implications of the Hong Kong Jewelry Fair resonate beyond the immediate sales. With key players adjusting their strategies and market dynamics shifting, all eyes will be keenly focused on how the industry adapts to these challenges in the months to come.