The Turkish jewellery industry has risen to become one of the world’s leading jewellery producers and traders – raking in billions of dollars in annual exports to major destinations such as the US, the Middle East and Asia, to name a few.

By 2019, when the industry was at its peak, exports rose to as much as US$7.2 billion, beating a US$6 billion target. But Covid-19, whose unprecedented impact on trade, travel and international business is still felt today, happened – bringing world industries, including the jewellery sector, to a standstill.

Data from the Turkish Jewellery Exporters Association (JTR) showed that at the height of the pandemic in March 2020, jewellery shipments had plunged by 46 per cent year on year, decimating earlier gains.

Overall exports showed a drop of 10 per cent to US$6.44 billion in 2020 from the US$7.2 billion recorded in 2019. The trade suffered immensely from stringent travel restrictions and cancellations of international jewellery exhibitions. Some companies were forced to permanently close operations, leading to massive loss of jobs and a huge dent in the economy.

Thanks to their ever-resilient nature however, Turkish jewellers are effectively coping with challenges by reassessing their business strategies and finding new ways to do business. Digital advancements, innovative designs and improved business practices proved critical as the country’s jewellery industry emerges from Covid-19.

Exports last year reached a record US$10.3 billion, up 60 per cent from 2020 and 43.05 per cent from 2019 figures as demand and production steadily picked up. Companies restocking their inventories also started participating in post-lockdown trade shows organised by the industry.

Going virtual

The pandemic’s impact on the jewellery sector was “significant,” according to Sejfula Bushi, general manager of Annda Fine Jewelry. Mirroring developments around the world, the industry however saw a gradual but steady increase in online activities during lockdowns, with buyers increasingly using the Internet to view products and eventually make a purchase, explained Bushi.

What further fuelled this trend were various initiatives by established jewellery brands to boost their virtual presence through several digital platforms, including social media.

B2B companies also turned online to touch base with customers, launch new marketing campaigns and stay relevant in today’s market, added Gary Karabulut, export manager of gold chain specialist Mioro.

“Travel restrictions forced us to seek different ways to reach our customers and introduce our latest products. Using this concept, we regularly conducted online meetings to communicate with and present new ideas to our clients,” revealed the company official.

Digital platforms likewise played a more important role in the trade as an alternative venue to conduct jewellery exhibitions.

JTR Chairman Mustafa Kamar explained that the pandemic had further bolstered the Turkish jewellery industry’s digitalisation journey, beginning with Jewellery Online International Network (JOIN) – the country’s first virtual jewellery event organised by JTR with the support of the Republic of Turkey’s Ministry of Trade.

JOIN, held from February 16 to 18, 2021, attracted participants from 90 countries. A second edition, which took place from April 14 to 16, 2021, recorded a 20 per cent increase in participation compared to the first event, according to JTR figures.

Alongside the digital fair was the introduction of JTR’s J-Box project. J-Box is a digital presentation tool equipped with a software that allows companies to display their products online, send high-definition images to clients and even conduct video conferences. JTR members were given an opportunity to showcase their products virtually and continuously reconnect with the market.

The association also created Turkishjewellery.org, an online portal where international buyers can browse through products offered by more than 120 Turkish member-manufacturers.

“From a positive standpoint, the pandemic has accelerated the Turkish jewellery industry’s digital innovation through JTR’s various initiatives,” noted Kamar. “JOIN and J–Box are milestones in our industry. They reflect our association’s innovative and solutions-oriented spirit.”

By the fourth quarter of 2021, the industry was able to hold a physical exhibition – the Istanbul Jewelry Show’s October edition, held from October 7 to 10. Organised by Informa Markets and sponsored by HRD Antwerp, the event recorded a 14 per cent rise in visitor figures from the same period in pre-Covid 2019.

A total of 23,038 buyers from 128 countries alongside 800 exhibitors graced the show’s 50th edition, according to the organiser. Countries with the highest number of visitors were Iran, the United Arab Emirates, Jordan, Egypt, Lebanon, Russia, Iraq, Ukraine, Morocco and Libya.

Modern challenges, modern changes

Apart from digital initiatives, Turkish jewellers also improved their production processes and offered more innovative designs. Annda Fine Jewelry adapted high-tech manufacturing solutions to create more complex designs faster and more efficiently. “We always strive to update the look and style of our designs so we can present fresh and relevant products to our customers, more so during the pandemic. This enables us to keep abreast with the latest trends,” noted Bushi.

Karabulut of Mioro said the company managed to resume pre-Covid production capacity and sales in 2021 after enduring a difficult 2020 when its factory was closed for almost three months. As part of its recovery strategy, Mioro regularly designs and manufactures sustainable new models, which it presents to buyers online or through its showroom.

The year 2022 started well for the company, with first-quarter volumes appearing to be promising, according to Karabulut.

Major markets also recovered at different paces, revealed Fahri Saygi, sales manager of wedding band manufacturer Tarz Alyans. Post-lockdown business was mainly focused on local buyers, but the European market eventually resumed activity earlier than the rest, followed by Asia.

Cemal Bulunmaz, export manager of jewellery tools and machinery specialist Bulunmaz, shared that his company received orders from US jewellery manufacturers amid the pandemic, demonstrating rapid recovery in 2021. Bulunmaz also supplied materials to buyers from Mexico, Colombia, Russia, Kazakhstan and Spain. Customers were particularly interested in its Banglemaster 12-axis CNC machine.

Business was up 20 per cent last year compared to 2019 before Covid-19 hit, Cemal added. Like its counterparts, the company engaged in a great deal of social media and digital marketing, which included promotional photos and videos.

Production-wise, Bulunmaz beefed up its product inventory to prevent delays in deliveries and supply constraints, which it experienced in 2020 and 2021.

Jewellers were clearly keen on replenishing their stocks and restarting their businesses. This was evident during the first two days of the Istanbul fair in October 2021, which Saygi described as “very crowded.”

“Buyers were eager to view new products and make a purchase. We made good business and met new customers as well,” he noted. “We mainly produce lighter products for the local market since these are more affordable. These products however are also moving fast among international clients."

Tougher times also required persistence and consistency. Saygi explained that during lockdowns, Tarz Alyans amplified efforts to communicate with clients through phone calls and video conferences.

While online channels proved extremely useful during the pandemic and are turning out to be an indispensable part of modern business strategies, traders and buyers still prefer face-to-face transactions during physical events, noted Saygi.

Bushi of Annda Fine Jewelry agreed, adding, “In-person meetings provide a quality of interaction that no technology as of yet can replicate.”

Revival and success

Jewellery demand has recovered from the initial onslaught of Covid-19 and is on the road to normalcy and even strong growth, according to Bushi.

“We are optimistic. Orders for the third and fourth quarters of the year are already coming in,” he noted. “We had to innovate faster because of the pandemic. As such, most companies are boosting their online presence. Buying online still presents a challenge, but it is also an opportunity to move forward and attract a different genre of clients.”

JTR’s Kamar is optimistic about prospects in the jewellery exports sector in 2022, which he said could perform better than last year. JTR is eyeing US$11 billion in Turkish jewellery exports annually. The association also hopes to further raise the profile of Turkish jewellers in the global arena by expanding their export footprint and participating in international fairs.

Gold jewellery is likely to lead the growth in production and exports moving forward.

Saygi of Tarz Alyans, for his part, underscored the need to conduct regular in-person international trade shows throughout 2022 to support post-lockdown gains in the jewellery sector. Citing steady appetite for gold jewellery, he said the Asian market is expected to drive growth in 2022.