By Manik Mehta
THE last JA Int’l Jewelry Show in New York, which was held from 28 to 30 July, provided glimpses of the recovery that was slowly but steadily taking place in the United States, the world’s biggest buyer of jewellery and precious stones. Indeed, as many exhibitors at the show observed, the trade discerned some “bright spots” in the US market.
Generally viewed as a barometer of the market sentiments in the country, particularly on the east coast, the show attracted foreign exhibitors, particularly from Hong Kong, China, Italy, India, Brazil, etc.
In an attempt to attract the trendy US buyers, who have become cautious about engaging in large purchases because of the economic uncertainties, many Hong Kong exhibitors were trying to present off-beat designs to attract visitors to their booths. Bobby Budhrani, partner in the Hong Kong-based Magia Ltd, which collaborates with an Italian designer, explained that his designs are done in Italy though the company still has some manufacturing operations in Hong Kong.
“However, the setting and finishing of our jewellery products are done in Italy. We deal, mainly, in precious jewellery in 18-karat. China is an interesting market but Chinese suppliers have yet to mature in terms of designer jewellery. Big brand-name product suppliers are setting up shops in China,” Budhrani observed in an interview with Hong Kong Jewellery.
Magia’s major markets are in the United States, Europe and the Gulf region. “In 2008 we had a crash in the United States followed by an equally disastrous one in Europe. However, business continued even as volumes declined. The middle class consumers were hit but the high-end buyers in the States continued to buy our products. Our Christmas season last year was not so good, but I clearly discerned an upswing in the mood of the US buyers at the New York show,” he maintained at the end of the show.
Anna Li, vice president of the Hong Kong-based Kings Mark Designer & Manufactory Ltd, which also has operations in China’s Guangdong province, claimed that she had received a steady stream of visitors to her booth at the JA show, though she said that these were, mostly, old customers who had come to meet her and possibly buy from her.
“We are showcasing here mostly precious fashion jewellery. We manufacture our jewellery in China. We certainly see an improvement in the economic situation in the United States, though it is taking time. This is also the case in Europe, I think. You have to offer good and innovative designs and keep your prices low. China’s labour costs have risen considerably. The customers in the United States, after passing through a recession, are cautious about overstocking, and want the best and innovative designs at lowest possible prices. Our major markets are the United States (30 percent) while the rest consists of Europe, but we are also developing a good customer base in Asian countries such as Japan and expanding within China. Let’s see how the last quarter of the year develops,” Li said.
Sam Ziefer, director of business development of Circa Retail, said that business was better and that “economic recovery is gaining steam”. “Fortunately, we have birthdays, anniversaries and the like and what better gift to give than a jewellery item! The business climate has improved,” he maintained. Ziefer, familiar with international jewellery sourcing, urged exhibitors coming to the United States to do their homework, do advance marketing and inform customers about their products. “They (exhibitors) have to give buyers the reason to come to their booths,” he said.
Indeed, America is all about marketing.Depending on their size and sales volume, many US jewellery companies earmark an average of roughly 10 percent of their revenue to promote their products and services. Industry pundits predicted that 2013 will go down as both a challenging and productive year in the United States, but they also feel that informing and educating the customers and end-consumers about precious metals and gems would break down barriers between suppliers and the buying public.
Bavna Jewelry, a California-based company that has manufacturing operations in Mumbai, uses precious stones such as emeralds, sapphires, tanzanites and rubies, has been importing stones from Africa and other regions. Such stones, according to the company representative Sunny Jain, sell well in the United States.
“We did not have many new customers, but our existing customers visited us at the booth. We notice that demand continues to be consistent and the economic downturn seems to have ended. The designs offered by us to our US buyers are not necessarily of Indian origin and though the products are made in India, the designs are suitable for western consumers,” said Jain who felt that designs from Italy were a “nice balance between elegance and casual wear”. Incidentally, the heavy Italian bracelets are having a renaissance in the US market.
Sam Gin, director of Hong Kong-based HKJT and vice chairman of the Hong Kong Jewellery and Jade Manufacturers Association (HKJJA), felt that the economic recovery in the United States had been slow and it was, consequently, having an impact on the exports of suppliers who rely on the US market. “Recovery on the east coast of the United States is faster than elsewhere in the country. But America is doing better than Europe. I expect economic recovery in the United States will gain steam in the coming year,” Gin said.
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