This article first appeared in the JNA January/February 2024 issue.

In August 2023, Hong Kong’s diamond industry saw a changing of the guards. Lawrence Ma, who founded and then led the Diamond Federation of Hong Kong, China (DFHK) for over two decades, handed over the association’s reins to Zuri Jewellery Director Victor Yiu, who had served as vice chairman for more than 10 years. Ma continues as DFHK founding president.

As DFHK Chairman, Yiu is now spearheading more consumer-facing and trade-focused initiatives to drive solid growth in the natural diamond trade. DFHK will also foster collaborations between Hong Kong diamantaires and international industry players, underlining the important role of DFHK in shaping the future of the trade, he revealed.

Concerted efforts

Representing Hong Kong’s diamond industry, DFHK plays a crucial role in bridging communication between its members, industry associations, the government and consumers to support the positive development of the diamond business, Yiu noted.

With this mission in mind, he is working closely with global stakeholders, including the World Federation of Diamond Bourses (WFDB), Natural Diamond Council (NDC) and De Beers Group to highlight the allure and intrinsic value of natural diamonds.

In September 2023, Yiu brought together top NDC and De Beers executives to brainstorm on commercial and promotional possibilities in the diamond sector. To help bring its message to the media, stakeholders and trade, DFHK held a press luncheon and a seminar on the sidelines of Jewellery & Gem WORLD Hong Kong 2023, which provided natural diamond players with a platform to highlight the Environmental, Social and Governance (ESG) initiatives of the sector. These were among Yiu’s first initiatives as DFHK chairman.

“We regularly have meetings with various Chinese and international associations to stay abreast of developments and challenges within the diamond industry. We share useful information with our members to help them make the right business decisions,” he added.

Rejuvenating the diamond sector

Engaging younger diamantaires – the future of the diamond industry – is pivotal to ensure sustainable growth in the natural diamond trade, according to Yiu, himself a second-generation diamantaire still in his 40s.

“My goal is to organise a wider range of activities for young diamantaires of DFHK – many of whom are second- or third-generation owners of diamond companies,” he noted. These initiatives can function as platforms to facilitate meaningful discussions, engage them in formulating growth strategies and foster a sense of unity within the industry.

Under Yiu’s leadership, DFHK has already taken steps in this direction by organising networking events in Hong Kong to bring together young international and local diamond industry players.

Furthermore, DFHK actively seeks the input of young leaders by inviting them to contribute creative ideas and opinions to marketing campaigns and initiatives of the federation. This inclusive approach gives way to fresh perspectives and ensures that the voice of the next generation is heard and valued, the new chairman explained.

Confidence-building measures

Yiu also believes that prospects remain bright in the natural diamond trade amid the challenge of declining consumer confidence. Citing results of De Beers’ 2023 Diamond Insight Report, he remarked that natural diamonds rank among the top three luxury goods desired by women in both the US and China. However, there is a significant gap between intent to acquire and actual acquisition rates, which presents a tremendous opportunity for diamond jewellers.

“We must develop marketing campaigns that offer incentives to encourage consumers to make actual purchases of diamond jewellery,” Yiu added.

In line with its positive outlook on the recovery of Hong Kong’s retail sector, DFHK is arranging a series of promotional activities in 2024 to further drive sales of natural diamonds in the city.

A key project is its Happy Hong Kong campaign from December 2023 to February 2024 where consumers who purchase natural diamond jewellery at 350 designated jewellers get to participate in a lucky draw and stand a chance to win prizes worth over HK$6 million (approximately US$767,000). Yiu believes this initiative also helps improve consumer sentiment.

Furthermore, DFHK is collaborating with NDC on a training programme in the first quarter of 2024 to educate frontline staff and further boost their knowledge of natural diamonds while honing their sales strategies.

“It makes a world of difference when sales associates
can properly explain the features and value of natural diamonds to consumers. If they could clearly and accurately present the differences between natural and lab-grown diamonds to potential clients, this would boost consumer confidence when purchasing natural diamonds,” Yiu explained.

To uphold Hong Kong’s position as Asia’s diamond trading hub and shopping capital, DFHK will also continue to strengthen its Natural Diamond Quality Assurance Mark programme, which certifies that only natural diamonds are sold in a particular retail store.

“We hope to sustain a favourable business environment in Hong Kong and strive to establish the city as a trusted trading platform for industry members while protecting consumer interest,” Yiu said.