FOCUS 焦点 12 | JNA November/December 2023 Cody remarked that majority of retail markets in advanced economies enjoyed strong consumer demand during the pandemic. In recent months, however, the market has become apprehensive of rising inflation and interest rates. He said, “We are seeing solid demand and high prices at the top end of the market as evidenced by auction results and reported sales.” Sean Gilbertson, CEO of miner Gemfields, also attested to a healthy coloured gemstone market in 2023. He noted, “We saw some numbers in our auctions that were quite frankly almost ‘rubbing the eyes’ worthy. Prices remain robust and strong in 2023. The market is very clearly healthy by all accounts albeit down notably from the irrational exuberance that we saw in 2022, so 2023 is pausing for a little bit of a breather.” Dazzling jewellery The high-end jewellery market is likewise experiencing pressure from external factors such as geopolitical tensions and high interest rates, according to Louis Cheung, chairman of Hong Kong Jewellery & Jade Manufacturers Association (HKJJA) and managing director of Edelweiss Jewellery Co Ltd. “Gold assets are now king as high-end jewellery sales have rapidly declined during the past three months,” he noted. “Volatility in China’s property market also stifled Chinese consumers’ appetite for luxury goods.” Türkiye, a top exporter of gold jewellery and jewellery mountings, also reported a sluggish 2023 mainly due to high gold prices. Sirzat Akbulak, manager of Jewellery Exporters’ Association of Türkiye, said Turkish jewellers performed exceptionally well in 2022, owing to a post-pandemic surge in business. “As Turkish companies primarily specialise in fine gold jewellery, any fluctuations in gold prices and related instabilities have a negative impact on our industry,” explained Akbulak. “The global economy has yet to fully recover as high inflation rates persist around the world. Business prospects stand to improve should inflation drop and investments increase.” Fai Po Gem & Jewellery Ltd, for its part, is pointing to a rosy 2023, having witnessed a steady and positive business performance and sustained growth in wholesale exports throughout the year. Its primary clientele hails from the US, Europe and Southeast Asia. Jacky Chan, founder and CEO of Fai Po, said the company offers top-grade products and customer services and regularly upgrades designs in line with current trends to drive business growth. “In recent years, stacking became popular across different jewellery types like rings, necklaces and bracelets. While cuff earrings were a hit two years ago, unilateral earrings are all the rage now as asymmetrical styles are favoured by fashion-forward buyers,” disclosed Chan. Dangling earrings and classic designs featuring recurring nature-inspired elements are also trendy. Diamonds, meanwhile, have consistently held their position as the most sought-after product category. Pearls also witnessed a remarkable performance in 2023 while labgrown diamonds are gaining traction as more affordable options for consumers, added Chan. Onwards to 2024 The industry can adopt a more upbeat outlook in the coming six months, specifically from Q4 2023 to Q1 2024, as demand for diamonds is likely to recover, remarked Ma of DFHK. For now, industry players should focus on cost, inventory and expense management, and increased marketing to promote natural diamonds. “We all remain cautiously positive. The trade is prepared for one or two more quarters of slower demand but eventually, we will see a revival of China’s economy, backed by government-led initiatives to spur economic activity,” he noted. Zerouki of WDC agreed, adding that the diamond industry has always been cyclical. She said, “With strong underlying consumer desire for natural diamonds and a track record of diamonds rebounding strongly in the wake of challenging economic times, we can look forward to brighter times ahead once we navigate through the current period – and with our responsible approach to supply coupled with our investments in growing demand, we are taking the right steps to position ourselves for the upturn.” Meanwhile, technology and design customisation are keys to sustainable growth and longevity in the trade, according to Agarwal of Kowloon Trading Co. Asia could be the next big market for jewellery and companies should focus on strengthening their business in the region, he added. Collective industry efforts to rebuild consumer confidence through curated marketing campaigns could help bolster diamond jewellery sales, according to Simon Hui, director, Raw Material, Diamond Management Centre at Chow Tai Fook Jewellery Group. “At the end of the day, emotional connection is the most important selling factor. Powerful storytelling and education are integral to the future success of our industry. We should focus on this to restore consumer confidence,” said Hui. Cheung of HKJJA, for his part, said companies should leverage new technology and techniques to advance their product offerings and adopt innovative marketing strategies to boost competitiveness in the market and achieve sustainable growth. Sorbis / Shutterstock.com
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