A Busy Beginning for the Hong Kong Jewelry Fair

The September Hong Kong Jewellery & Gem Fair is off the good start, according to nearly everyone I spoke with Thursday.

Considered to be the world’s largest jewelry trade fair, the show opened Wednesday for gems, diamonds, pearls and other jewelry making materials at the AsiaWorld-Expo. The fair’s second location will open Friday for finished jewelry, from the most basic to the most luxurious, at the Hong Kong Convention & Exhibition Centre.

The fair is also being held as Super Typhoon Mangkhut is bearing down on the city. It’s too early to tell whether Hong Kong will take a direct hit but so far experts say that the storm could be the equivalent of a Category 5 hurricane.

But for now it’s all business at the AsiaWorld Expo where the aisles and exhibiting booths are bustling.

“It was very busy yesterday and it remains busy today,” said Gary Roskin, executive director of the International Colored Gemstone Association.  

This statement was echoed among the colored gem and diamond dealers I spoke with. Most spoke on the condition of anonymity. “I’m very happy so far,” said an opal dealer. Yesterday, in particular was very busy.”

On Thursday, as the day wore on more buyers came streaming into the halls. From diamonds to colored gems to pearls booths were jammed with buyers.

At Erica Courtney’s booth, one representative said there’s been a lot of interest the first two days.

The fair’s overwhelmingly good feeling is coming amid a report by the De Beers Group stating that diamond jewelry demand reached a new record high of $82 billion, led by Millennial consumers, which accounted for two-thirds of global diamond jewelry sales in 2017.

The De Beers Diamond Insight Report also notes that Millennials, those people currently aged 21 to 39, represent 29 percent of the world’s population and are the current largest group of diamond consumers. They accounted for almost 60 percent of diamond jewelry demand in the US in 2017 and nearly 80 per cent in China.

Independent Jewelry Designers Make Their Mark At VicenzaOro

For the first time in the long history of VicenzaOro, the January edition of the jewelry trade show provided a dedicated space for a dozen international designers. By all accounts it was a welcome and successful addition to the fair.

"Winged Beauty" earrings by Magerit

  
Branded as “The Design Room” and located in the main hall of the large fair, the area was defined by neutral colors and wood tones with each designer’s space being identical. Black chairs and couches lined the edges giving people a reason to linger. The finishing touch was a logo with “The Design Room” name partially enclosed on two sides by a white line to create an open-square shape. 

To fill the space the fair curated a diverse group of 12 designers from different parts of the world. Some already have an international reputation while others are either newer to the industry or have regional followings. All produce innovative designs, a well-defined aesthetic and have the potential to widespread market potential. 

18k rose gold earrings by Sutra with pink spinel, garnets and diamonds

The designers were Netali Nissim, Federica Rettore and Qayten from Italy, Rodney Rayner, Sarah Ho and Zara Simon from the United Kingdom, Nikos Koulis from Greece, Magerit from Spain, Daniela Villegas and Sutra from the USA, Fernando Jorge from Brazil who now lives in London and Elie Top from France. 

Colorful Laguna rings by Rodney Rayner

Rodney Rayner, a veteran award-winning jewelry designer, not only participated in the area but helped to curate the designers. He then worked with the trade fair to convince them to participate. 

“We have exhibited in the past at Vicenza in the main halls, but this new concept got us much more attention,” said Rayner, who specializes in colored gemstone jewelry. “Everyone walking around took the time to look in every showcase. As an example, we personally met a new customer who asked if it was our first time to exhibit at VicenzaOro. I explained that it wasn't but in previous years they had simply walked past my booth. All the designers had a very good reaction from both press and retailers.”

Lily Rose ring by Sarah Ho in 18k white gold with a 3.84 carat pear-shape rubellite center stone surrounded by brilliant and baguette diamonds and emeralds

Sarah Ho didn’t need much convincing and was happy she made the decision to exhibit.

“I love the way all the booths look the same,” said Ho, whose work tells her personal story. “We felt the buyers were generally intrigued by The Design Room and wanted to see what new and exciting products are available. They really spent time looking around.”

For Italian jeweler, Qayten, it was the first time exhibiting at Vicenza for the Bologna-based brand founded in 2012.

Qayten Happy Hours 18k rose gold and diamond earrings

“I liked the idea of sharing a space with different companies and designers from different countries and styles, said Maddalena Allegretti, Qayten marketing and sales manager. “We received the interest of many retailers and press. It definitely was a positive experience and we’d like to do it again.”

The designers were also feted by the fair organizers. They had the opportunity to participate in the Andrea Palladio International Jewellery Awards, which were presented in the auditorium inside Fiera di Vicenza, where VicenzaOro January was held and attended a dinner at a Michelin star restaurant hosted by Matteo Marzotto, executive VP of Italian Exhibition Group, the organizer of VicenzaOro.

Niki Lalioti, marketing and communications manager for jewelry designer Nikos Koulis, models one his earrings at their booth during VicenzaOro. Photo by Anthony DeMarco

One of the award winners was Greek designer Nikos Koulis.

“I believe that the creation of a dedicated space for contemporary designers to showcase their collections is more efficient for buyers, media representatives and visitors since there is a coherent approach while our styles are distinct and complementary,” he said. “The outcome for my brand was positive and we met our goals for this show.”

Parisian jewelry designer, Elie Top, demonstrates one of his spherical jewel creations in his booth during the VicenzaOro trade show

Elie Top is new to fine jewelry but his name is well known in the fashion world, particularly in Paris where he was a designer of costume jewelry for Lanvin for 15 years. He describes his first collection as Mécaniques Célestes, globe-shaped pieces that open, revealing a centerpiece set with pavé diamonds, which he compares to a sparkling sun.

“It was an honor to be chosen and invited to participate,” he said. “It was very interesting to be placed close to other talented designers. The Design Room gave a true overview of jewelry creation for today. All are very différent because they are personal and pretty radical in creative integrity. It gave us the chance for great exposure, meeting journalist from everywhere, and internationals buyers. It is an important and new step in my own story.” 

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Montblanc CEO Jérôme Lambert Bids Farewell

Montblanc CEO Jérôme Lambert (letf) with brand ambassadors Guey Lun Mei, Charlotte Casiraghi and Hugh Jackman at the Montblanc gala dinner in Geneva

The rows of tables that make up the seating arrangement at the Brasserie Des Halles de L’Ile for Montblanc’s annual gala dinner is just one of the signature trademarks of Jérôme Lambert that displays his attention to detail. 

In less than four years the engaging French CEO of the German luxury brand has managed to make his mark in many ways. Among them:

* He created consistent storylines based on Montblanc’s heritage over multiple product categories and produced innovative products that adhered to brand’s legacy. For example, a year ago, Montblanc celebrated its 110th anniversary with a wide collection of writing instruments, timepieces, leather goods, cufflinks and jewelry called “Montblanc Heritage Collection, Rouge & Noir” that took design inspiration from various periods of the brand’s history. 

* He championed the first design partnership in Montblanc’s history, working with contemporary designer, Marc Newson, for the Montblanc M collection of writing instruments.

* He named contemporary art curators, Sam Bardaouil and Till Fellrath, as co-chairs of the Montblanc de la Culture Arts Patronage Awards, also a first for the brand and the 25-year history of the awards program.

* He was instrumental in merging the talents of its two watchmaking operations: Villeret (formerly known as Minerva), a watchmaking workshop in the town of the same name that produces a limited number of timepieces with hand-made chronograph movements; and the Montblanc Le Locle watch manufacturing operation. The two facilities produced separate products until Lambert arrived. In less than a year Montblanc began producing familiar and new Montblanc chronographs with Villeret movements at a broader range of prices and styles. 

Now it was time for Lambert to say goodbye. His success at Montblanc and an equally successful stint at luxury watch brand Jaeger-LeCoultre has earned him a corporate position at Compagnie Financière Richemont, which owns both brands. He moves into a new title April 1 as head of Operations responsible for central and regional services for all brands with the exception of jewelry and watchmaking. He is being replaced by Nicolas Baretzki, currently Montblanc’s executive VP of sales.

The seating arrangement of rows of tables at the Montblanc annual gala dinner. Photo by Anthony DeMarco

The January 16 dinner during the Salon International Haute Horlogerie (SIHH) watch trade show was the last chance Lambert had to publicly address his top-line staff, many of whom he hired, and the international celebrities associated with the brand, many of whom he recruited. His energetic ad-libbed remarks were often interrupted by cheers and applause—overshadowing the celebrities at the event, including Hugh Jackman, Montblanc’s international brand ambassador. 

“Every time it’s a little bit of an adventure so it looks good on Monday morning,” he said about preparing the luxurious exhibition space at SIHH, the luxury watch trade show. “There’s a lot of people involved and a lot of stories.”

Jérôme Lambert addresses his guests at the Montblanc gala dinner. Photo by Anthony DeMarco

He added, “For many of you who started on the very first days, weeks and months of our history. I remember the tough nights. Thanks for the good energy, investment and strong belief that everything was functioning perfectly.… Thank you for the amazing time. Thank you for being our partners, brand ambassadors, friends and sources of inspiration.” 

Those sitting on the rows of tables cheered. 

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Salvatore Ferragamo, Versace, Versus And Nautica To Leave Baselworld

Paolo Marai, president and CEO of Timex Group Swiss Luxury Division

The prestigious Hall 1 of Baselworld may have more empty space than originally planned as four fashion watch brands are the latest to pull out of the 2017 edition of the world’s largest watch and jewelry show.

The Timex Group Swiss Luxury Division—which manages the watch business for luxury brands Salvatore Ferragamo, Versace, Versus and Nautica through licensing agreements—is the latest to announce that it is leaving the annual fair held in Basel, Switzerland. 

Paolo Marai, president and CEO of the division of the Timex Group, in an exclusive interview, said the $3 million investment into the show could be better spent in other areas of its global business. The four brands occupied Hall 1.1, the second floor of the hall dedicated to “global” watch and jewelry brands. 

“I think that Baselworld is a huge investment for everybody and is in my opinion losing some effectiveness,” he said. “It used to be very important in different levels. First, it was a good opportunity to meet journalists but they’re coming less and less to Baselworld. And even those who come are reducing the time they are staying—running from one appointment to the next.”

He continued, “Second, in the past we used to meet a lot of retailers. This year not one single country sent retailers. So what you meet in Baselworld are distributors. But we know the distributors. I don’t need to go to Baselworld for that.”

Baselworld Hall. 1.1 (Photo Courtesy of Baselworld)

Marai says the changing luxury business demands that luxury brands, particularly fashion brands, need to be closer to the consumer. He argues Baselworld isn’t an efficient way to do this.

“Baselworld is becoming more of a place to show off. I’m there because I want to show that I’m at Basel rather than doing something that is really effective toward the end consumer,” said Marai, a native of Milan who now lives in Lugano, Switzerland, where the Timex Group Swiss Luxury Division is located. “We need to move the needle and be close to the end consumer…. I can put in the same amount of money to be closer to the end consumer and be more effective…. It is a cost I do not believe we can afford anymore. 

He added, “I’m not the only one (leaving) Baselworld. Plenty of brands have decided to step out of there. When the market is suffering I think you need to try something new. It is worth it for us to do something different.”

In May, luxury watch brands, Ulysse Nardin and Girard-Perregaux, announced that they were exiting Baselworld to exhibit at the Salon International de Haute Horlogerie (SIHH), which is held January in Geneva. Both brands—owned by Kering, the French luxury goods holding company—occupied the most prestigious space at Baselworld, Hall 1.0, the first floor of the Global Hall where the most prestigious independent and corporate-owned watch brands are located. 

Watch, jewelry and gem companies have been leaving Baselworld since the trade show unveiled its $454.5 million upgrade to the Messe Basel fair complex in 2013. The new renovations came with hefty price increases for exhibition space as the trade show began positioning itself as a luxury event. In response, in 2013 there were 355 fewer exhibitors, primarily smaller players and those who provide products and services within the trade. However, a few large brands also balked at the new asking price. International jewelry brand, David Yurman, was perhaps the most high-profile company to leave the fair in 2013. 

The change did attract some luxury brands, most notably Graff Diamonds, which began exhibiting at Baselworld in 2014 at Hall 1.1.

Baselworld Hall 1.0 (Photo Courtesy of Baselworld)

Meanwhile, UBM Asia established “Jewellery & Gem Fair – Europe” in 2014 in Freiburg, Germany. The dates and location line up nicely with Baselworld. Freiburg is less than an hour away from Basel, Switzerland. Many of the jewelry, gem and watch trade companies that used to exhibit at Baselworld now exhibit at the new show.

Despite the issues, Baselworld remains the world’s largest watch and jewelry fair. It is also the most important watch and jewelry show in the world for new product introductions and for international exposure. Show officials said in 2016 attracted 145,000 attendees—who include representatives from exhibiting companies, buyers and other visitors—a 3 percent decline from 2015. There were approximately 1,500 exhibitors. The number of journalists covering the event increased 3 percent to about 4,400 from 70 countries. 

It’s not just Baselworld. Large and small jewelry and watch trade shows throughout the world have been struggling to find their footing. The September Hong Kong Jewellery & Gem Fair, the world’s largest fine jewelry trade fair, reported attendance declines for two consecutive years. In the U.S., JCK Las Vegas (the largest jewelry trade show in North America and at one time the largest in the world) has never fully recovered from the 2008-2009 global recession. SIHH, known for its exclusivity, has opened its doors to more watch exhibitors and buyers.

Marai says driving this move is a change in the way that consumers relate to brands. This has prompted his push to find new ways for his company to get closer to its customers through its marketing practices and sales. The search for these new practices is further complicated by the various economic and geopolitical issues throughout the world that are affecting distribution and sales. This ranges from the steep decline in sales from the once booming China and Hong Kong marketplace, to the ongoing conflicts in the Middle East, the Western economic sanctions imposed on Russia and the surprise victory of Donald Trump as U.S. president.

He says the brands he manages through the Timex luxury division are doing better than most because they are a smaller and newer to the industry. The Versace and Versus part of the business was founded in 2004 and the Ferragamo and Nautica business three years later. However, he says it’s necessary to be proactive.

“In tough moments you have to be more active. The market is suffering, the economy is not perfect everywhere. We are still very satisfied with what’s happening this year but I have to admit the market is not doing well,” he said. “We’re still showing growth because we are relatively small. We can still grow but in general the market is not performing well.”

Part of being active is embracing what Marai calls the “new digital revolution” with a “shop now, buy now” mentality.

“Everything is going digital at this moment and we’ve been struggling the past two years trying to embrace it. Because we work under license so we have some constraints. The brands cannot go in that direction just for watches. But more and more all luxury brands need to understand this digital revolution and need to manage it.” 

This requires a more direct relationship by brands with consumers through social media and through the availability of their products. This approach, in and of itself, is not new to those in the luxury market. However, achieving this relationship has been difficult for established luxury and fashion brands.

“Those who have the money in the next 10 years need to be reached in a completely different way,” he said. “Traditional communication is over. Those with the capacity to understand and to translate this into the market will be more effective.”

Marai is interested in using the Internet as a tool to communicate directly with consumers and present their products and brand. As an eCommerce tool, he still says traditional retail will still be primary source of sales, noting the data indicates that that eCommerce will account for 20 percent of total luxury sales in 2025. 

“There is a long way to go still. I’m pretty sure traditional distribution is frightened by the Internet and they should not be because it is used more as an information tool rather than just a purchasing tool. (However) it’s the best way to present your products. You can have your best show, your best shop where you can present all of your products exactly as you want them to be presented.”

Marai also is aware that online shopping is a fast and convenient way for consumers to buy products. 

“Through digital you can supply your customer with whatever he wants so when he comes to us for a different dial or different strap it is very simple (to fulfill that order). We have to try to create a bridge between the traditional distribution and the new tools that are offered through eCommerce in order to be more effective with the end consumer.”

Often overlooked Marai says is that more than 50 percent of watches are purchased as a gift. “This means the presentation needs to be more luxurious, more than the product itself sometimes.”

In addition, he says watches from fashion brands are considered an accessory and a vehicle of self expression and should be further addressed by luxury watch brands. 

“Brands such as ours, fashion brands, the design is more relevant than the movement inside. We have a good opportunity at the moment. Who cares today what is inside? The new generation they do not consider watches high-end technology.”

One piece of technology that muddled the watch market was the smart watch, Marai says, which after their initial success have failed keep the interest of consumers. However, it did cause damage by creating confusion with consumers and within the industry. He said the rush by traditional watch manufacturers to create their own digital watches was a mistake. 

“Apple was a huge success in the initial phase but people that bought it don’t use it,” he said. “It has created confusion for the end consumer and the distribution channels. Everybody wanted to be the first to produce the product and I think it was a mistake. It was a little bit too early.”

Marai says the luxury watch industry is still a “relatively rich market,” meaning that compared to other industries the margins are high. But he hinted that this may change down the road as brands continue to market and sell directly to consumers. 

“The distributor buys the product from the industry and then sells it to the retailer. (This) is not something that will last forever. The industry has to come closer to the distribution and become more direct and more effective, reducing a lot of the costs in distribution and (thus) making a more effective proposition to the end consumer.”

He added, “Some activities would have to possibly disappear.”

These are just some of the reasons Marai and others are reconsidering their commitment Baselworld. 

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September Hong Kong Jewelry Fair Set for September 13 - 19

Jewelry demand in China is expected to pick up in September ahead of the week-long national holiday in October, according to the GFMS Gold Survey 2016: Q2 Update & Outlook. This is potentially good news for the September Hong Kong Jewellery & Gem Fair, which will be held September 13-17 at AsiaWorld-Expo and September 15-19 at the Hong Kong Convention & Exhibition Centre.

Recent data from the Chinese government also showed an improvement in the Chinese market: China’s gold imports from Hong Kong reached RMB45.8 billion (around $687 million) in the first six months of 2016, up 550 percent from the same period in 2015. The September Hong Kong Jewellery & Gem Fair positions participants to tap into opportunities in China as well as in the rest of the Asia Pacific. 

The September Fair, now in its 34th edition, continues to enjoy support from key industry players around the world, according to UBM Asia, which owns and operates the fair. 

This year’s September Fair will host more than 3,550 exhibitors from 54 countries and regions in more than 135,000 square meters of exhibition space. AWE will display jewelry raw materials from over 1,600 local and overseas exhibitors, while HKCEC will showcase fine finished jewelry from around 2,000 international fine jewelry exhibitors.

New exhibitors from Nigeria, Portugal, Saint Kitts and Nevis, Slovak Republic (Slovakia), Tahiti and Vanuatu will be mixing with the veteran vendors. In addition, there will be new group pavilions from Myanmar and Portugal, bringing the number of pavilions to 25. 

“We are excited to unveil numerous new events, launch value-added show features and introduce new exhibitors at this edition as part of our initiative to continually enhance buyers’ experiences,” said Celine Lau, director of Jewellery Fairs, UBM Asia. 

About 58,000 local and overseas visitors are expected to attend during its seven-day run, said Sunny Chan, deputy fair manager, Jewellery Fairs, UBM Asia. This will be a slight increase over the 2015 edition of the fair.

The Fair Mobile App is now available for download at http://www.jewellerynetasia.com/. Through the app, users can receive show alerts and updates, browse the list of exhibitors, and create a personal daily planner.

The Alrosa Group, Russia’s leading diamond company and the world’s biggest diamond miner by volume, will again host its diamond auction at the September Fair at AWE. Meanwhile, the 59th Paspaley Pearl Auction and the 68th Robert Wan Tahiti Perles Auction will be held at HKCEC. 

Also returning are the world’s largest diamond pavilion, Asia’s biggest gemstone marketplace, and the Hong Kong Pavilion and the Hong Kong Premier Pavilion, which house the biggest display of Hong Kong jewelry in the world. 

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