Hong Kong’s gem and jewellery industry is focusing on innovation and market diversification to navigate headwinds from US tariffs, economic uncertainties and geopolitical tensions. 

Speaking at the Media Gathering of Jewellery & Gem ASIA Hong Kong on June 19, leaders of the city’s trade associations revealed that their members are turning challenges to opportunities by embarking on product and channel innovation while pivoting to emerging markets.

Lawrence Ma, founding president of the Diamond Federation of Hong Kong, China (DFHK), noted that the gem and jewellery industry has been facing several challenges in the past few years, ranging from China’s slow economic recovery and increased competition from lab-grown diamonds to geopolitical pressures and the US tariffs. He said many of these situations were resolving themselves, and the trade is relying on its spirit of collaboration, adaptability and innovation to handle current difficulties.

“The one good thing about the tariff situation is that the US is targeting everyone. This leaves a lot of room for the rest of the world to work together, explore opportunities between other countries and regions, and encourage each other,” Ma said.

DFHK Chairman Victor Yiu underscored the importance of product and platform innovation to sustain growth. Aside from creating new concepts and attractive products, manufacturers need to explore various platforms and channels to reach clients effectively and efficiently. Omnichannel strategies that combine exhibitions with digital, social and traditional platforms are proving successful for the city’s trade, he said.

Alternative markets 

Market diversification is another key strategy for Hong Kong gem and jewellery players.

Yiu said, “While the US is a major market for Hong Kong, we can tap other regions such as the Middle East, where demand remains strong for diamonds and jewellery.”

Sze Ho Yin, president of the Hong Kong Pearl Association, also named the Middle East as a strong market for the city’s pearl sector. India and Southeast Asia likewise present good growth potential, he disclosed.

“In the past, we thought the Philippine market was small, but it is now showing solid growth and development. Indonesia is also showing much promise, with its live sellers being particularly active in moving pearl products in the market,” Sze said. 

He added that men are increasingly donning pearl jewellery too, which bodes well for the Hong Kong pearl industry.

 

Informa Markets Jewellery Senior Event Manager Sunny Chan; Hong Kong Jewellery Manufacturers’ Association Associate Chairman (Exhibition Affairs) Tommy Lee; Hong Kong Gemstone Manufacturers’ Association Executive President Kenny Cheung; Diamond Federation of Hong Kong, China’s Chairman Victor Yiu and Founding President Lawrence Ma; Hong Kong Jewellery and Jade Manufacturers Association Chairman Victor Chan; Hong Kong Pearl Association President Sze Ho Yin; and Informa Markets Jewellery Director of Jewellery Fairs Celine Lau

 

 

Victor Chan, chairman of the Hong Kong Jewellery & Jade Manufacturers Association (HKJJA), also pointed to growing opportunities in Southeast Asia. 

“Hong Kong companies are adapting quickly to the US tariff situation and exploring new markets. Southeast Asia’s potential and its proximity to Hong Kong provides us with more prospects. We are finding partners in the region for manufacturing and, at the same time, companies there that want to work with Hong Kong due to its tax-free status and the ease of doing business in the city,” Chan disclosed.

Hong Kong Gemstone Manufacturers’ Association Executive President Kenny Cheung highlighted business prospects in mainland China, while Tommy Lee, associate chairman (Exhibition Affairs) of the Hong Kong Jewellery Manufacturers’ Association, revealed efforts to mitigate the impact of high gold prices on the production process.

Tax-free hub

Trade leaders also underscored Hong Kong’s continued importance as a jewellery trading hub. “Hong Kong is still a free port, so we encourage all buyers and exhibitors to use the city as a platform to do business,” Yiu said.  

Ma cited Hong Kong’s resilience, adaptability and propensity for innovation as the foundations of its success as a thriving jewellery hub. Hong Kong’s tax-free status also makes it a great platform for trade, he added.

“The global industry has been concerned because the business cycle is different from the way things have been in the last six decades – periods of boom followed by periods of setbacks,” he explained. “But things are getting back to normal – not how it was before but the normalcy that we create through collaboration and innovation.”

Ma said he expected matters to settle by year-end and improve over the next few years. “I remain positive. The essence of jewellery demand is economic growth. If people have more money to spend and feel secure about the future, they will spend more. We have to continue to work harder and to work together,” he said.