JNA Jan/ Feb 2021

專題報道 JNA Jan/Feb 2021 | 11 A year into a pandemic that decimated global businesses and livelihoods on an unprecedented scale, gradual improvements in buyer sentiment and a stronger response to the virus, supported by the development of vaccines, offer a glimmer of hope for many industries. In the jewellery and gemstone sector, companies witnessed a slight rebound in consumer demand in the weeks leading up to the holiday season. Jewellery sales in major retail hubs Hong Kong and China proved promising after a gloomy start to 2020 – Hong Kong reported a narrowing rate of decrease beginning August while China breached negative territory in July, clocking in a 7.5 per cent increase in jewellery retail sales from a months-long decline. The diamond sector is also on the road to recovery after coming to a halt during the early stages of the coronavirus pandemic. Diamond miners reported steady buying activities at their latest rough diamond auctions, driven by demand for diamond jewellery, which bolstered retail orders for polished goods in the midstream sector. Jewellery exports were likewise a source of optimism. By September 2020, Hong Kong’s exports of jewellery, goldsmiths’ and silversmiths’ wares eased into single- digit albeit still-negative levels. With global travel restrictions in place, a number of major international fairs – an important platform for jewellery and gemstone traders to do business, build networks and find new clients – have gone digital, offering online showrooms and sales channels in place of in-person meetings. Auction houses likewise held online sales while webinars and Zoom conferences were done in lieu of live events and face-to-face interactions. These, and the development of vaccines that can potentially end the coronavirus crisis, helped ease concerns over a full-blown recession, but a recent surge in new infections in major cities around the globe after initial advances in containing the virus could derail early recovery efforts in many industries, the jewellery sector included. Hence a bigger question remains: How soon can the world return to normalcy? More so, what lies beyond Covid-19? Experts in the jewellery and gemstone industry sit down with JNA to examine the state of the trade as humanity gears up for a post-pandemic scenario. A year of upheavals According to coloured gemstone specialist Clement Sabbagh, who’s also president of the International Colored Gemstone Association (ICA), the gemstone trade relies heavily on traveling to do business. At the height of the pandemic, all segments of the gemstone sector – mining, cutting, distribution, design, manufacturing, wholesale and retail – came to a standstill, resulting in reduced rough material. The gem trade faced a trio of challenges – travel restrictions, which resulted in border closures and cancellation or postponement of major international trade fairs; sluggish consumer demand for luxury products; and reduced gemstone orders from jewellery manufacturers due to lacklustre retail business. “Overall, businesses are still struggling to re-open, but we have observed a recovery from the second quarter of the year,” noted Sabbagh. With travel bans and closure or reduced operating hours of restaurants, cinemas, shopping malls and other establishments, consumers awash with discretionary cash are spending locally, fueling domestic retail. An interesting development is that buyers don’t simply shop online from the comfort of their homes anymore; they would also go to limited, appointment- only business transactions, especially for jewellery, added the ICA official. Vaccines will play a significant role in the industry’s revival, but a full and meaningful recovery hinges upon the availability and equitable distribution of these vaccines so travel bans can be lifted. “At the trade level, we have always relied on one-on-one, onsite