Design-centric products and technological advancements are crucial to steering the jewellery business forward amid a slow global economic recovery, according to Hong Kong jewellery manufacturers. 

Prepared to meet ever-changing consumer needs amid business uncertainties, these companies remain optimistic about future prospects.

Economic undercurrent

According to the city’s Census and Statistics Department, exports of jewellery and other gold and silver items rose 2.8 per cent year on year to HK$14.9 billion (around US$1.9 billion) in February while January to February figures were up 6 per cent to HK$34.8 billion (around US$4.4 billion). 

Despite the positive momentum, jewellery manufacturers are still seeking ways to drive the business amid a more challenging environment.  

Alice Chan, executive director of jewellery manufacturer Continental Jewellery (Mfg) Ltd, mentioned a tough business climate in China, Europe and the US due to interest rates and a higher cost of living.

Continental Jewellery primarily exports diamond jewellery to Europe and the US.

"Economic instability has prompted us to consider whether we should adjust our price points and designs to cater to new lifestyles adapted by people, which is leaning more towards casual and sporty as well as unisex designs," said Chan.

Consumer preferences

Chan noted that classic styles enjoy steady demand, but consumers are now looking for better-quality products, particularly with better finishing or settings. 

Yellow gold is also becoming increasingly trendy on top of widely popular white gold, according to the jewellery manufacturers.

"With the market embracing the allure of gold, yellow gold is becoming more prominent in our latest collections, moving away from designs with lots of diamonds and less gold," Chan added.

Eldwin Wong, director of Joint Wealth Ltd, pointed out that consumers still want to spend even amid a slow global economy. He explained, “Although their spending power may be weaker, they continue to look for little treats at affordable price.”

Wong said Joint Wealth’s strategy is focused on design-centric collections and offering competitively priced products this year.

Its newly launched 14-karat gold jewellery collection features pieces adorned with mother of pearl, turquoise, onyx, lapis lazuli, cat's eye and diamonds to create a more fashionable style.

“The collection has been well received since its launch in January 2024. With its simple yet sophisticated design and affordable price points, it has garnered attention in the market, especially among younger consumers,” Wong said.

Benny Ho, founder and CEO of Advan Jewelry Ltd, agreed with observations on the rise in popularity of colourful jewellery pieces in recent years. 

"Over the past two years, there has been a significant demand for rubies, sapphires and emeralds. Market interest in semi-precious gemstones like amethyst and topaz could likewise gradually increase" remarked Ho.

New opportunities

Demand from the Middle Eastern market is also rising rapidly. Ho of Advan Group said they are tapping into this market, which includes Qatar, Dubai and Saudi Arabia, among others.

He explained that in the past, Middle Eastern buyers primarily sought gold jewellery and extravagant designs. In recent years, however, their preferences have shifted towards more fashionable European and American styles, thanks to social media. 

Additionally, younger buyers now favour smaller and intricately designed jewellery.

"We receive orders from a medium-sized Middle Eastern jewellery company with approximately 300 chain stores. They want affordable products in substantial quantities," Ho said.

Advanced technology

Equally important to generating new revenue streams is reducing costs to maintain a company’s healthy financial status, noted Chan of Continental Jewellery.

"We have been putting a lot of effort into streamlining our operations, optimising our workforce and enhancing overall efficiency," she said.

In 2023, Continental Jewellery, in collaboration with Microsoft, digitised and streamlined its operations using Dynamics 365 Finance & Operations System. 

The company plans to develop a variety of applications, incorporating artificial intelligence and Internet of Things technologies, to further support business growth. “Properly harnessing big data can help facilitate strategic planning for future business development,” Chan remarked.