Japanese pearl traders are seeing renewed interest from US and European buyers who are gradually returning to the pearl market – helping to counter weak demand from China.

George Kakuda, president of the Japan Pearl Exporters' Association (JPEA) and CEO of Kakuda Pearl Co Ltd, said buyers were actively sourcing pearls at an international trade exhibition held in Hong Kong in early March.

Prices have likewise been stabilising, resulting in increased buying activity from European and US customers. Japanese Akoya and South Sea pearls are equally enjoying steady demand, with white pearls moving particularly well. Mid-range pearls to commercial goods are also selling.

“In the past, mainland Chinese buyers accounted for around 90 per cent of our client base while other markets comprised the remaining 10 per cent. Now, that 10 per cent is expanding and we are seeing more European and American customers. The market is becoming more diverse,” explained Kakuda.

Lustre and surface quality have become major purchasing considerations as opposed to the size of the pearl, he added.

Moving forward, Kakuda noted that the pearl sector is unlikely to see a full recovery in demand from mainland China, similar to levels observed two or three years ago. The focus must then shift towards strengthening marketing strategies to re-engage the Chinese buyer while simultaneously tapping into new markets.

Commenting on the US-Iran war, the JPEA official said while the escalating conflict is a cause of concern, there were no immediate effects on the pearl sector. 

Ryuichiro Machizawa, general manager for the Pearl Operations Division of Mikimoto, and deputy general manager of the Japan Pearl Promotion Society, said the war will mostly affect logistics and customer mobility.

“The impact on the pearl sector will be indirect,” noted Machizawa. “We are hoping for good business in the first quarter as this will indicate what the future shows are going to be like. Let us wait and see as the situation changes every day. So far though, we do not see a direct implication for pearls.”