FOCUS 12 | JNA July/August 2023 stone and recutting it, or getting it certified. They also have the option to sell the loose stone or reset it. With the resumption of international travel, buyers are expected to start purchasing second-hand and estate goods from Japan again. Buying recycled diamonds to recut to 3EX diamonds has likewise become a successful venture for small-scale diamond cutting workshops in China. Face-to-face business The return of in-person trade events and exhibitions is seen to further aid buyers in reigniting their businesses. Physical shows are where they discover new products, trends and services, meet with existing and potential suppliers, and close deals. Another important function of trade fairs is testing and establishing new price levels. Hong Kong shows held in March this year saw the return of Chinese B2B buyers to the international market. This however did not translate to actual sales, according to exhibitors, as Chinese buyers were not too accepting of existing high prices of goods. The maiden edition of Informa Markets’ Jewellery & Gem ASEAN Bangkok (JGAB) in April 2023, meanwhile, witnessed more buying activity with the slight softening of prices. Buyers attending JGAB also seized an opportunity to buy from the source at the renowned gemstone market of Chanthaburi in Thailand. Industry players in China said travel challenges hindered in-person business with overseas suppliers as flights between China and other countries, the US in particular, had yet to resume completely. At press time, Chinese and American airlines operated 24 direct flights per week between China and the US, compared to dozens of daily direct flights pre-pandemic. Fewer flights also mean pricier airfare. “Therefore, we do not see the full numbers of foreign suppliers coming to China yet as it is still expensive to travel abroad,” said Geng of Huabi Diamond. Travelling to India, on the other hand, also remains challenging due to hurdles in visa applications. Industry players however remain upbeat about solid market recovery, with Chinese jewellers at the ready to fulfill rising demand. “While the online communication channels that we have adopted during the pandemic remain effective, face-to-face meetings and product viewings remain invaluable to our business. We are happy that these are back. There is huge demand that needs to be fulfilled,” shared Chen of Rosy Clouds Colored Diamonds. Jinghua Jewellery, which operates 23 stores in Qingdao, Shandong province, is part of the Jinghua Group, one of the first members and shareholders of the Shanghai Diamond Exchange (SDE). According to Lydia Geng, president of diamond wholesaler and SDE member Huabi (HB) Diamond, recent buying activities revealed that diamonds of 0.005 to 0.02 carat and 0.03 to 0.07 carat, bearing G to H colours and SI clarity grades are highly sought after, with considerable price increases. These categories are suitable for the manufacturing of lower-priced diamond jewellery that are mostly sold online. Melee diamonds are also used in highend jewellery. “We have observed increased inventory buying for diamonds below 1 carat while demand for over 1-carat diamonds is relatively slow,” Geng added. Chen Zuwei, president of fancy colour diamond specialist Rosy Clouds Colored Diamonds, meanwhile observed that demand for top-quality, investment-grade fancy colour diamonds has witnessed a resurgence after the pandemic, backed by restored confidence among wealthy consumers. Zuwei explained, “The fancy colour diamond market in China is still developing. Blue and yellow diamonds are popular while Argyle pinks and even reds are attracting considerable attention.” New channels Consignment sales for livestreaming is a rising phenomenon in China’s jewellery trade. Retailers would borrow goods from suppliers and show these to consumers via livestreaming sessions. Any purchase could immediately be carried out but will only be completed once full payment is received. This form of sales usually applies to lowerpriced jewellery pieces. Close-outs have also become a reliable source of goods for buyers, specifically those who are adept at sorting and evaluating jewellery pieces. The purchase of close-out items is considered a smart and practical move amid massive shutdowns of jewellery retail stores during and even after the pandemic. The goods are often mixed, ranging from loose diamonds of various sizes, shapes and grades to plain or gemstone-studded jewellery pieces. Since close-out items are usually not best-sellers, buyers face the challenge of getting creative and selling them at a profit either as a finished jewellery piece or perhaps taking out the centre
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