JNA Jan/ Feb 2021

專題報道 JNA Jan/Feb 2021 | 13 sales. Traveling was also prohibited, which meant suppliers missed out on certain quarterly auctions,” he noted. Pearl producers had an additional cause for concern. Apart from business woes, pearl farmers had to ensure that no local Covid-19 transmissions happen at their remote farms, most of which have no immediate access to medical assistance. As with the rest of the business world, the pearl industry also took advantage of digital opportunities during the pandemic. Majority of pearl producers implemented hybrid auctions with a combination of online and offline elements. These events have so far proven to be practical and effective to some degree, given the circumstances, according to Cheng. The great reboot According to Lawrence Ma, president of the Diamond Federation of Hong Kong, China (DFHK), the industry may have seen the worst of the pandemic, with the biggest panic occurring in March and April 2020 when diamond prices plummeted by 15 to 20 per cent. By the fourth quarter of 2020, prices started to pick up as consumption gradually resumed. Come October and November, prices in some areas reverted to their January and February levels, he added. The reduced number of rough diamonds and tempered manufacturing activities also provided stability. “Diamond miners were flexible in supplying rough rather than pushing goods in the market. This should help stabilise supply and prices,” explained Ma. “The polished diamond market already digested some overhanging goods, so it appears there will be healthier demand for diamonds in the coming months.” China – as the first country to emerge from the coronavirus’ grip – has shown promising signs of economic comeback. Data from the National Statistics Bureau of China showed that retail sales of gold, silver and jewellery returned to positive territory as early as July, increasing by 7.5 per cent after months of negative results. The sharpest drop was recorded in January to February at 41.1 per cent, but the figure has reverted to single-digit losses by May. “People cannot travel but there’s pent-up demand in the market. The economy is down but demand did not fall off the cliff. From August onwards, it started to improve. People are spending locally, stimulating domestic consumption,” noted Ma. “We should see some recovery in the first quarter of 2021, given the current momentum and consumer sentiment. I’m banking on China fueling the consumption business.” Some indications of green shoots were also recorded in the US. De Beers’ 2020 Diamond Insight Report, released in November 2020, showed that US consumers are already adapting to the new normal and that diamonds seem to have retained their sparkle amid the crisis. According to the study, diamonds play an ever more significant role in the lives of consumers throughout the pandemic, with many purchasing diamonds as a symbol of resilience and strength, and to celebrate personal relationships. Kent Wong, managing director of Hong Kong retailer Chow Tai Fook Jewellery Group Ltd, is upbeat about a recovery within the year on the back of measures to reinvigorate local economies as well as the development of vaccines. “The situation will stablise following the rollout of vaccines in 2021, which favours a gradual recovery in the jewellery retail sector,” noted Wong. In China, for instance, effective government policies aimed at stimulating local consumption will bode well for the jewellery retail business. This is a cause for optimism for Chow Tai Fook, who in November reported a 4.8 per cent upturn in revenues from its retail operations in China for the first half of 2020. Business remains under pressure in Hong Kong and Macau but once borders are reopened, tourism and retail could gradually make progress. Unfortunately, borders remain closed and consumer sentiment dampened by the fourth wave of cases in Hong Kong. “Yet, Chow Tai Fook will continue to embrace technology to keep our customers engaged and prepare for future recovery,” added Wong. US$56 m 5,600萬美元 Rough diamond sales by De Beers in Q2 2020 at the height of the pandemic 正值疫情高峰期，戴比爾斯 2020 年第二季度的鑽胚銷售額