焦点 JNA Jan/Feb 2022 | 13 The company official attributed this market optimism to some countries learning to live with Covid-19. Echoing the need for traders to once again engage in one-on-one meetings, he said the resumption of international travel is key to actual and lasting recovery. Appetite for pearls Yoshihiro Shimizu, chairman of the Japan Pearl Exporters' Association (JPEA) and chairman of Kobebased Hosei Co Ltd, agreed. The pearl industry is heavily reliant on international jewellery fairs to touch base with clients and meet potential customers. Japan also counts on tourist spending to support the country’s loose pearls and pearl jewellery sector. At the moment, the country is selling pearls remotely through online channels, mostly to Chinese buyers. Japanese Akoya pearls of 6mm to 8mm in diameter are highly favoured in the US market. Golden and white South Sea pearls of 9mm to 11mm are also moving fast. “Prices remain solid especially for round, near-round and good-quality pearls,” explained Shimizu. “We see strong demand from China and the US. Other promising markets are Japan, of course, and the Far East.” Tighter supply however is hindering growth in the Tahitian pearl sector. According to the JPEA official, the export of Tahitian pearls amounted to around US$60 million to US$70 million about three years ago but the figure has since dropped to US$15 million in 2020. “Chinese technicians could not go and visit Tahiti to graft the pearls. Buyers meanwhile are not allowed to visit. There is very limited strategy to get Tahitian pearls out into the open market,” said Shimizu. Dazzling and colourful Whiledigital transactionsworkedwell for other sectors in the jewellery and gemstone industry, doing business online is still quite a challenge for the coloured gemstone business, revealed Clement Sabbagh, president of the International Colored Gemstone Association (ICA) and director of Ben Sabbagh Bros. It was deemed the only feasible way to conduct business at the height of the pandemic – going digital meant utilising company websites, social media and other online platforms to market products and stay in touch with clients. Consumers with discretionary funds – faced with limited opportunities to spend money on luxury trips, fine dining or going to events – turned to online shopping, specifically for goods that appreciate in value such as gemstones and jewellery. The shopping journey however remains experiential, according to Sabbagh. “Trading online is easy for harmonised products such as diamonds,” he explained. “This is not the reality for coloured gems since each stone is unique and not easily replenished. As such, digital will not replace in-person transactions.” Online tools however complement face-to-face meetings as these are valuable for networking, brand storytelling and consumer education. 2022 and beyond WFDB’s Dvash is maintaining an upbeat outlook for 2022, adding that robust market demand for diamond jewellery is likely to continue, with China and the US driving the growth. An absence of pandemic-related government funds however could impact full economic recovery. The US, for instance, is winding down its massive stimulus programme in response to rising inflation. It also announced plans to raise interest rates three times throughout the year. As of press time, the US inflation rate hit 6.8 per cent in 2021, its highest level in almost 40 years. For Ma of DFHK, economic growth and inflation could bode well for the jewellery sector since it could fuel demand for jewellery. “Inflation indirectly affects our industry because people want to buy goods before prices go up. It seems that we have been gearing up for a better coming six to nine months,” he added. Assimon of De Beers Jewellers and De Beers Forevermark is also bullish about prospects this year. China will remain a key market for diamond jewellers alongside the US and Hong Kong. De Beers Jewellers is introducing a new high jewellery collection in January and adding new diamond engagement ring styles to its expansive bridal jewellery selection. It is also revitalising other well-loved collections with new designs. In the coloured gemstone realm, Sabbagh said various market trends that sprouted during the pandemic are here to stay hence companies are continually resetting strategies as they navigate the post-pandemic world. Ben Sabbagh Bros is planning to participate in international trade shows this year and will start visiting clients again, supplemented by online meetings and email orders, he added.
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