Jewellery and Gem Asia Hong Kong (JGA) has come and gone for another year, concluding at the Hong Kong Convention and Exhibition Centre (HKCEC) on 23 June after four productive days of trade.
This was the second show after a four-year hiatus due to the COVID-19 pandemic.
While the previous fair was focused on ‘rebounding and recovering’ amid an adverse economy, this meeting was fixated on planning for the future.
As part of a new initiative, event organisers Informa Markets launched the Sustainability Awards 2024, with an expert panel from the jewellery and gemstone industry judging the efforts of businesses of all sizes.
There are five categories: environmental stewardship, social empowerment, manufacturing innovation, community engagement and sustainability leadership.
The finalists of each category were announced on the fair's opening day. The winners will be crowned in September at Jewellery and Gem World Hong Kong (JGW).
As part of the announcement, senior vice president of Informa Markets, David Bondi, recalled some famous wisdom: that the best way to predict the future is to create it.
“Sustainability is often discussed; however, seldom understood,” he said.
“Purposeful sourcing is increasingly important in the jewellery industry. While it might involve extra effort, the satisfaction makes it all worth it.”
Celine Lau, director of exhibitions at Informa Markets, echoed these sentiments. She said that sustainability is a ‘family affair’ and that it was important for each member of the jewellery industry to spread the word.
“There are many companies that have been working hard behind the scenes over the past few years to improve their practices, and we believe it’s important to acknowledge them,” she said.
“Indeed, everyone named as a finalist in these awards is a winner in their own right.”
Let’s go for a walk
Walking the floor of the jewellery fair for three days was an informative experience. The diamond section struggled to gain traction as overbearing concerns about the future of the trade took hold.
Indeed, the broader jewellery industry has been buffeted by various issues. Among the more common issues raised by visitors and exhibitors were the record-high price of gold and the rising cost of silver. There were also concerns about consumer confidence and decreasing discretionary spending.
Many raised the ongoing confusion consumers report about the rivalry between natural and lab-created diamonds.
In short, learning about the differences and similarities between the two categories can be easy; however, consumers still find it hard to comprehend the sharp price difference for something chemically identical.
Beyond those hot topics, visitors also expressed reservations about the ongoing impact of the war in Ukraine, the punitive sanctions placed against the Russian diamond industry, and the flow-on effect of these prohibitions on jewellery businesses.
The two Informa Markets shows in Hong Kong contrast in terms of focus: the June show is focused on the Asian market, while the September show is global in nature.
With that in mind, consumer spending on diamond jewellery in China was also a hot topic of discussion.
Hong Kong retailer Luk Fook recently described the demand for diamond jewellery as ‘subdued’ in mainland China.
It was a similar story for Chow Tai Fook, which despite reporting record revenue in the past year, announced a 13 per cent decline in sales of diamond and colour gemstone jewellery.
When quizzed about this topic, Diamond Federation of Hong Kong chairman Victor Yiu made an interesting observation about China's expanding middle class.
According to the Pew Research Centre, the share of China’s population in the middle-income group increased from 3.1 per cent in 2000 to more than 50 per cent by 2018.
Yiu said that with increased access to tertiary education and professional careers, young Chinese couples are delaying the ‘major moments’ of life – including marriage and children – and these milestones are often intricately connected with diamond jewellery.
There’s considerable data to support this position. Statistics from China's Ministry of Civil Affairs released in 2023 revealed that in 2022, 6.83 million couples registered their marriages, down from 7.63 million in 2021, a record low since 1986.
Yiu said it was similar to what’s been witnessed in Western countries over the past two decades – and Australia is no exception.
Recent research suggested that as many as one in seven Australian adults has a ‘de facto’ partner following a significant decline in marriage among those 35 and younger.
As such, Yiu said there’s little reason to doubt that young consumers still have an emotional connection with diamond jewellery - it’s simply being realised later in life.
Splash of colour
Among the crowd of exhibitors was Kunming Diamonds, displaying a dazzling area of fancy colour diamonds.
Marketing director Shubham Maheshwari said that because of the unique nature of the category, fancy colour diamonds have been somewhat sheltered from the broader challenges facing the diamond industry.
“Market research has certainly been on the agenda of every visitor I’ve spoken to so far. Everyone is keen to see what’s available,” he explains.
“Slow and steady has been the overwhelming sentiment as far as retailers are concerned. For our business, it’s a matter of relationship building. Connecting in person with partners and customers is invaluable.”
Maheshwari said that recent high-profile auctions of fancy colour diamonds have kept the passion for these unique stones burning bright – and it’s hard to argue otherwise.
Known as the Eden Rose, a ring featuring a 10-carat fancy intense pink diamond was recently sold at Christie’s in New York. The pre-sale estimate at the 11 June auction was $USD9 million ($AUD13.59 million).; however, the piece was sold for $USD13.3 million ($AUD20.08 million).
At another auction in Geneva, a pink diamond was sold for $USD12 million ($AUD17.98 million). The 6.21-carat fancy vivid pink type IIa diamond ring was the headline act of the 13 May Geneva Jewels Auction.
The Argyle Phoenix, a 1.56-carat fancy red diamond ring, also impressed buyers, returning close to triple its high estimate at $USD4.2 million ($AUD6.29 million).
“I think the fancy colour diamond market is very healthy, and in particular, we are experiencing a great deal of interest in fancy vivid yellows,” Maheshwari continues.
“Auctions are still helping the industry significantly. They generate a lot of excitement and keep the enthusiasm for these pieces alive.
“Fancy colour diamond collectors and customers are a unique type of consumer.
"They’re very passionate and eager to learn all that they can. I think that it’s somewhat rare in the jewellery industry to have customers so devoted to researching the stones.”
Strands of pearls
As expected, the pearl section was a whirlpool of activity. Thousands of visitors piled into the pavilion each day to frantically negotiate prices over glowing strands of aquatic treasures.
The fair offers a selection of pearls in various types, qualities, and prices. Suppliers of Akoya, South Sea, Tahitian, and freshwater pearls offer them in parcels, pairs, and strands.
Designers and manufacturers showcase their newest collections of pearl jewellery, from larger-than-life statement pieces to stylish accessories ideal for everyday wear.
It was a memorable trip to Hong Kong for Autore Pearls, as the company was named a finalist in the Environmental Stewardship category of the 2024 Sustainability Awards.
Sam Shelley said the company was proud to be recognised for its sustainability and regenerative farming efforts.
“What many people don't understand is pearl farming benefits the environment,” he explained.
“It doesn't leave a footprint. The act of growing oysters is beneficial to the ocean. Oysters filter the water, and they hang freely from the lines. They don't obstruct any wildlife or catch anything in the nets, and oysters are also food for the fish.”
“We’ve been supporting local communities with our beach cleanup efforts and coral reef regeneration programs employ the indigenous people in Indonesia, providing school funding.”
Autore's Enchantress necklace in 18-carat rose gold, adorned with 16 carats of pink diamonds and 23 carats of white diamonds, was proudly on display.
A pear-shaped white diamond shines like a crown at the serpent's head, while the eyes and nostrils are embellished with rubies, black diamonds, and moonstones. The piece features 26 South Sea Keshi pearls collected over eight years.
"In terms of jewellery, South Sea pearls are a major focus for us," Shelley continues.
"The basics like studs and hooks will always be attractive to people, particularly because of the quality of the pearls.
"We're seeing a move towards colour gemstones, which is interesting. We've been incorporating more and more colour gemstones into our new collections. People are chasing colour at the moment.
Colours of the rainbow
The fair offered opportunities to source the colour gemstone staples – ruby, sapphire, and emerald – alongside other eye-catching natural wonders such as tourmaline, spinel, tanzanite, alexandrite, morganite and more.
Over the past four years, increasing prices for colour gemstones have been attributed to supply constraints, economic fluctuations, and rising consumer demand.
Recent high prices at auctions are expected to impact market dynamics.
With that said, despite the considerable rise in prices for colour gemstones in recent years, there remains a steady demand in the market.
When on the hunt for an Australian presence at one of the largest jewellery fairs, opals stand out prominently.
Opals have surged in popularity among Asian consumers in recent years, creating significant demand that challenges the supply chain.
“Once upon a time, we had to rely on word-of-mouth to increase the popularity of opals and opal jewellery,” Tom King of Opal Pacific tells Jeweller.
“Today, we are finding that interest in Australian opal is always rising. All varieties of opal are popular with Asian consumers; however, black opal is highly sought after.”
Based in Auckland today, King says he still travels to the opal fields at least once a month.
"We are really happy with the fair. Day one was busy enough to meet our budget, and it's been strong in the days that followed," he says.
“I’ve found that Chinese markets tend to become knowledgeable and informed about trends very quickly, and I suppose it’s because of social media. Word about the beauty of Australian opal has certainly spread near and far.”
Located nearby, the Red Radiance 2.0 – The Ruby’s Mine To Make Adventure attraction was a consistent hit with the visitors to the fair.
An immersive experience, visitors were greeted by an in-person demonstration of ruby cutting by world-class artist Victor Tuzukov.
Starting his career 24 years ago as a marine navigator and economist, Tuzlukov quickly became renowned for his mastery of gemstone cutting.
He earned a graduate gemmology degree from GIA Moscow and gained international acclaim through numerous competition wins.
In May 2020, his 3,051-carat kunzite, Fragility of the Eternal, set a Guinness World Record for the largest faceted spodumene, boasting 928 facets.
His 116-carat tsavorite, Lion of Merelani, is housed in the Smithsonian and considered among the world's most significant gemstones.
The exhibition included examples of various ruby specimens and remarkable jewellery and accessories crafted from ruby and gold. These include the Kleodora Queen Blue Clutch, made by ‘L’Aquart.
The exhibition also included the chance to view ruby specimens through a microscope, with many visitors studying inclusions up close and personal for the first time.
A special showroom was also established, allowing visitors to examine rubies with special ultraviolet torches.
Wave of the future
On 21 June, the JGA Spotlight: Meet the Future of Jewellery Design panel was hosted.
The event featured Austy Lee of Austy Lee Art Jewellery, Sarah Zhuang of Sarah Zhuang Jewellery, and Vitoria Wu of Osi Vitoria Jewelry. It was hosted by Pinky Seung, chairperson of the International Jewellery Designers Association.
A considerable amount of the discussion was dedicated to the future of the jewellery industry, with the panellists suggesting that it’s never been easier for individual designers to spread the word about their work.
Social media was identified as the best way to achieve this, with the panellists agreeing to four crucial principles when it comes to digital marketing: consistency, creativity, personalisation, and research.
The impact of Artificial Intelligence (AI) was also discussed at length, with these programs identified as helpful in assisting designers and jewellery manufacturers. With that said, it was agreed that they cannot replace or meet the needs of intricate human preferences.
Action and excitement return to Hong Kong with Jewellery and Gem World Hong Kong (JGW) from September 16 to 22. As the ruby exhibition has concluded, visitors will be greeted next time by RIENT Odyssey: From Shell to Market: The Fascinating Life of Pearls.
As mentioned, the winners of the 2024 Sustainability Awards will also be announced. Once again, the show will be held at the Hong Kong Convention and Exhibition Centre and the Asia World Expo.
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