GEMSWORLD | 16 | 2019/20 INSIGHTS Gemburi’s Khunaprapakorn said he expected slower business at the June Fair owing to the political situation, but visitors, mostly from Asia, came and placed orders. Saltzman, for his part, said the US-China row has had little to insignificant effect on the industry. “It’s definitely putting pressure on the Asian market since things have slowed down, but we still see solid demand,” he continued. AG Color President Hemant Phophaliya, meanwhile, said fewer people came at the June Fair in Hong Kong, which he traced to the local political situation. A generally weaker business sentiment could also be attributed to US-China trade tensions. China used to be the centre of the gemstone and jewellery business, but the market has since changed, with majority of Chinese traders still unloading excess stock from years of active buying, he noted. “We focus on a diversified market – Europeans, the US, Middle East and India, not only China. We also offer products other than tanzanite, such as tsavorites. The most promising market for us now is the US,” explained Phophaliya. Another challenge faced by the coloured gemstone industry is attracting a new generation of consumers and how to effectively sell to them, according to Sabbagh. Young consumers require full, open and honest disclosure of treatments and enhancements, and want to confidently buy gemstones that were responsibly and sustainably sourced. ICA is also working on a few projects to encourage millennials and Gen Z to work in the industry. “They can sell to young people because they speak the same language,” he noted. “We want to tell stories of movers and shakers in the industry to inspire people. We need new blood in our sector.” Education is an important aspect of the trade since learned consumers make informed buying decisions. For instance, the trade has become more receptive to stones from nontraditional sources such as Zambia and Brazil for emeralds, or Mozambique for rubies. In China, buyers are branching out to other gems such as spinels, opals and tsavorites, revealed Sabbagh. Both Mozambique and Burmese gems were requested at the June Fair, with buyers placing orders for smaller stones or 3 carats and below, as well as high-quality stones of 5 to 10 carats. “Burmese rubies are preferred for their historical significance and reputation, but supply is tight. Buyers instead go for Mozambique rubies, which are readily available in themarket,” noted Khunaprapakorn. Prices have been on the upswing. For top- quality stones, prices have gone up by around 20 percent since last year while those for nice-quality stones are 5 to 10 percent higher. Smaller sizes or 3 carats and below saw a 10 to 20 percent price hike. State of the trade Uncertainties arising from the US-China trade dispute as well as the political unrest in Hong Kong are adversely affecting consumer sentiment, but traders are banking on the industry’s proven resilience, according to Sabbagh. “A flourishing luxury goods market thrives on happy, confident consumers who feel good about life. Macroeconomic and geopolitical hiccups generally result in sluggish jewellery sales,” the ICA official said. “Hong Kong for instance has survived many difficulties in the past. It will continue to be a very important gemstone and jewellery hub.” Burmese gem traders at the Mogok local market in Myanmar ( Mongkolchon Akesin / Shutterstock.com ) | 缅甸宝石商聚集在摩谷当地的宝石市场
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