FOCUS 12 | JNA Jan/Feb 2022 brands are now expected to provide information on how they respond to key environmental and social issues as part of the shopping journey, particularly when it comes to luxury products. Resilience and flexibility Hong Kong’s experience during the coronavirus crisis is also out of the ordinary. As a global jewellery and gemstone trading hub, the city immensely depends on international travel to fuel the retail sector and provide a platform for jewellery and gemstone traders to transact business through trade shows. With travel disruptions, Hong Kong has suffered tremendously from the lack of overseas arrivals. Government data revealed that visitor numbers in 2020 reached 3.57 million, down by 93.6 per cent from 55.91 million in 2019 and by 94.52 per cent from 65.15 million in 2018. In October 2021, visitor arrivals reached 9,353, up 19.6 per cent from October 2020. From January to October 2021, arrivals totalled 72,458, which is a 98 per cent drop from 2020 figures. According to Lawrence Ma, founder and president of the Diamond Federation of Hong Kong, China (DFHK) and CEO of the Lee Heng Diamond Group, Chinese visitors used to account for 60 per cent to 65 per cent of domestic retail consumption in Hong Kong. The figure has since fallen to around 1 per cent to 2 per cent. Local Hong Kong consumersmeanwhile are gradually resuming social activities, given the relatively stable Covid-19 situation in the city. More people are venturing out, eating at restaurants and shopping for consumer goods, jewellery included. Covid-19 vaccination records have also improved. The main deterrent to continued growth however is Hong Kong’s strict quarantine policy, which is discouraging overseas arrivals in the city, explained Ma. “Jewellery shows last year were more local-oriented. Because of the 21-day quarantine rule in Hong Kong, no one would come here to be locked up for three weeks before they can start working,” he noted. “Having said that, the local economy seems to be faring much better and domestic consumption has been doing well compared to 2020.” Business is about 15 to 25 per cent better compared to 2020 but there is still room for improvement. Amid the Covid-19 crisis, jewellery companies also embarked on an adaptation and readjustment strategy to mitigate revenue losses. Marketing and product development were tailored to local consumers while technology became an indispensable tool in reaching out to clients. Ken Lo, director of Eternity Manufacturing Ltd, said his company had experienced a considerable increase in business from the second quarter of 2021 onwards. Business came mainly from the US, with orders consistently coming in as jewellers stocked up for the holiday season. By the third quarter of the year, even the European market was starting to move again. “Several customers who have not been active in the past five to six years got in touch with us since they needed to replenish their inventories,” remarked Lo, who is also the former chairman of the Hong Kong Jewellery & Jade Manufacturers Association. “It may not reflect the overall situation but that is our experience.” HK$26.56B (US$3.4B) 265.6億港元 (34億美元) Hong Kong’s jewellery exports in October 2021, up 50.2 per cent from 2020 2021年10月香港珠宝的出口额，较2020年增长50.2%
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