FOCUS 焦点 12 | JNA November/December 2024 “There is no doubt that the fall in demand for diamonds has resulted in increased appetite for coloured gems. We will have to wait and see how long this aberration might last,” added Cody. In terms of finished jewellery, Mehta of Varsha said classic pieces like tennis bracelets and necklaces, and hoop earrings are among the top-selling items while dainty, understated jewellery pieces are gaining popularity, given the high price of gold. Platinum jewellery as well as those adorned with labgrown diamonds and coloured gemstones are also favoured in the market. Sophia Macris, creative director of Verragio Fine Jewelry, which is a strong player in the bridal ring category, observed that customers are expanding their offerings to include other fine jewellery pieces. “We made sure to include price points between US$750 to US$1,500 at retail to accommodate customers who have not purchased fine jewellery outside of their bridal rings,” she noted. “In that price range, our 18-karat-gold pearl and diamond pendants perform exceptionally well.” Meanwhile, Christian Tse, president of Christian Tse Designs and Manufacturing Inc, pointed to stronger demand for personalised and theme-based jewellery, particularly in Europe. Buyers are also on the lookout for more innovative designs, including bejewelled hair clips and anklets. A younger generation of buyers becoming a dominant force in the jewellery market is influencing a move towards bolder, more expressive and unconventional jewellery designs, he added. “With their purchasing power expected to surpass that of millennials within the next decade, this shift is bringing new expectations and preferences to the forefront,” remarked Tse. “Brands should embrace more daring designs to cater to Gen Z tastes, including elements like asymmetry, bold colours and unique materials.” The year 2024 also saw enhanced dedication to sustainability initiatives and digital strategies, noted Tse. Other markets While the US remains a key growth driver, India also emerged as an important player in 2024, helping to balance out challenges arising from inactivity in China, noted Mehta. “India is an emerging market with promising potential, but overall, majority of the business is coming from the US, with only a small portion from Asia,” he added. In Hong Kong, jewellery manufacturers are advised to diversify and expand to other international markets like Southeast Asia and the Middle East to combat market volatility, shared Louis Cheung, chairman of the Hong Kong Jewellery & Jade Manufacturers Association and managing director of Edelweiss Jewellery Co Ltd. “Demand for high-end jewellery in these regions is on a steady rise, presenting new opportunities for Hong Kong's jewellery companies,” remarked Cheung. He added that weak demand is dampening sentiment in diamond jewellery businesses, leading to reduced trading volume in the midstream. Meanwhile, in the pearl sector, prices have returned to normal from peak levels. Hong Kong Jewelry Manufacturers’ Association Chairwoman Bronia Yip likewise underscored the need to adjust to market changes. “Jewellers in Hong Kong are not only adapting to new trends but also improving production and operations, making us more competitive in the international market,” she disclosed. “More jewellery companies are beginning to use new technology such as 3D printing and artificial intelligence in order to enhance production efficiency.” A new hope Dvash of WFDB said reducing supply of rough diamonds and De Beers’ decision to cut back on Sights are bringing about positive developments in the diamond trade. Industry-wide marketing campaigns aimed at driving demand, specifically those led by De Beers and the Natural Diamond Council, are also critical to inspiring renewed desire for diamonds. The WFDB, for its part, is working with the Shanghai Diamond Exchange to bolster demand in China. “Recovery will be gradual, but we hope to see a more positive trend in the upcoming US holidays,” shared Dvash. “I believe we will have a better-than-expected Christmas season, with a positive forecast for 2025.” Cody of ICA echoed this upbeat sentiment, adding that fiscal constraints are expected to ease throughout 2025 while major national elections will have been concluded during that time, creating a more buoyant and confident retail environment for coloured gemstones. Macris of Verragio, for her part, is counting on gold’s inherent appeal to support the jewellery sector amid the metal’s skyrocketing prices. After the financial crisis of 2008, when the price of gold also shot up, brands responded by using alternative materials. “A fine jewellery customer, one who loves 18-karat gold and cherishes her jewellery, will have a heightened sense of the gold’s value as the price rises, rather than retreat to a cheaper material,” said Macris. “Now, there is an opportunity to speak to the inherent value of gold as prices soar and emphasise the lasting legacy of fine jewellery.” Recovery will be gradual, but we hope to see a more positive trend in the upcoming US holidays. - Yoram Dvash, president of the World Federation of Diamond Bourses
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