The luxury goods market is largely under the impact of economic recession and the jadeite market is of no exception. While the Hong Kong jadeite industry had enjoyed its glory years between 1960s and 1980s, it shrunk with an unknown future as the jadeite manufacturing sector declined. Hong Kong Jewellery invites Yau Kim Wing, perpetual president of the Hong Kong Jade Association, perpetual honorary president of Hong Kong & Kowloon Jade Merchants Union Association and a consultant of the Hong Kong Jewellery and Jade Manufacturers Association laboratory and technology committee, to share his insights on the development of the local jadeite industry.
Yau Kim Wing established his business Kam Wing Cheong Jewellery Company Limited in 1985 and has gone through several decades of ups and downs in the industry. He said, within the whole Chinese jadeite market, Hong Kong shares the same status as any other mainland cities so we could not discuss the local industry by itself. Like any other trade, the jadeite business changes with time and consumers’ preference. Unlike the past, as the local jadeite manufacturing sector diminishes, Hong Kong has lost its influence on the market. Yau said, currently about 80 percent of their retail sales are generated by mainland Chinese customers. Their preference also directly affects production from rough purchase to design. He said: “Some clients ask for icy jadeite the moment they enter the shop, in this way businessmen will naturally stock up more icy type jadeite.” In the past most customers prioritised colour when buying jadeite; now their top concern is type and icy jadeite is so highly sought-after that even colourless stones could fetch good prices. In contrast, due to a shrink in demand, the price of less transparent jadeite drops way lower than before with no signs of improvement.
In terms of supply and demand, the results of the Myanmar Gems Emporium (MGE) 2015 shows that compared to 2014, the number of lots offered increased by 20 percent while the transaction volume dropped by 36.9 percent. Yau explained this was due to sellers insisting on high prices while buyers became more cautious in purchase as a result of the economic recession. He added that rise in rough prices is not a problem as long as the market could accept it. Relatively speaking, skyrocketing rental poses greater challenges. For example, the large-scale machinery required for cutting huge rough stones which is not frequently used, takes up a lot of space. The use of such equipment increased shop owners’ costs considerably. An alternative solution is to send the stones to mainland China for cutting yet procedures involved are highly complicated. The industry is now discussing if the problem can be solved by pooling resources of more members.
Faced with the loss of technology and craftsmen, Yau tried to voice his concern regarding the risks posed by the shortage of craftsmen and lack of formal training to the government when he was serving as the chairman of the Hong Kong Jade Association (2002-2004). Unfortunately no support was provided in the end and the industry slowly slumped as he had predicted. He said most of the manufacturing sector has been relocated to mainland China. Some craftsmen lost their jobs and were forced to quit the industry while others took up jobs in mainland China. Nowadays, the jade manufacturing industry of mainland China is maturing gradually. Many art schools in mainland China offer formal sculpture training as well. In comparison, there is no new blood in Hong Kong at all and there is no means to learn the skills either; a severe lack of talents thus results.
Nevertheless, the city is not without its advantages. During early 1950s, a group of jadeite businessmen moved to Hong Kong from Guangzhou during the Chinese Civil War and began their trade in Canton Road in Yau Ma Tei, which gradually developed into a jadeite marketplace. In Yau’s view, the local jadeite industry has a long history during which local businesses have gained rich experience with a flexible mindset and sharp sensitivity to market movements. Besides, a high standard of finished products, delicate craftsmanship and innovative design are other qualities that local businesses take pride in. Furthermore, stringent quality control and comprehensive testing and certification systems reinforce consumer confidence. Altogether these factors successfully contribute to the ‘Hong Kong brand’. Objectively, the number of retail stores in Canton Road has increased on the whole and several brands from mainland China have opened branches there, which means there is still room for retail business in Hong Kong.
Regarding jadeite jewellery design, Yau said Hong Kong manufacturers place great emphasis on the process of gemstone setting, which allows them to create sophisticated designs. Nowadays most practitioners are moving towards more youthful and fashionable styles, though there are relatively fewer changes in mid-to-high priced products that tend to reflect traditional culture, since customers in that category generally prefer more classic styles, Yau said. He stressed: “In fact we are led by clients, which is why sensitivity to the market is of vital importance. Sometimes you may notice some trends and it is up to individuals to attempt something new.”
Looking into the future, he advises members of the trade to closely follow market situations in mainland China, uphold the local industry’s long-standing reputation by maintaining rigorous quality standards and introducing creative varieties to develop diverse offering so as to gain a foothold in the China market during difficult times.
