“China still has a strong demand for golden pearls. At the same time, Chinese consumers have become more price conscious and developed an appetite for Japanese akoya pearl jewellery. White and black South Sea pearl necklaces are presently in less demand everywhere, whilst lower priced pearl jewellery targeting younger generations are going well,” Andre Hodel, the second generation of pearl jeweller Hodel Switzerland, told Hong Kong Jewellery the recent market demand for different types of pearls.
As one of the foremost pearl jewellers in the world, Hodel Switzerland was founded in 2005 by Rene Hodel who has devoted himself to pearls for more than three decades. Sourcing high quality pearls from different suppliers and farmers in various regions in the globe and keeping a solid foothold in major jewellery markets, the company is renowned for creating modern pearl jewellery with exquisite craftsmanship and a signature European touch, with an operational base in Hong Kong and the headquarters in Lucerne, Switzerland.
“We only acquire the best pearls, so as to create high quality jewellery that we are known for,” said Andre Hodel. He revealed that, prior to creating pearl jewellery, the company had been a pearl wholesaler for years. Rich experience in pearl trading has helped them gain extensive knowhow in better applying pearls to jewellery design and making.
According to another member of the family’s second generation Adrian Hodel, the company sources freshwater pearls from China, South Sea pearls from Australia, Indonesia and the Philippines, Tahitian pearls from French Polynesia and Fiji, akoya pearls from Japan. “We are always open to sourcing new suppliers from different regions, but the bottom line is that we only source pearls that fit our quality standards,” he emphasised.
Despite that the company has diversified sources of pearl supply, the overall decline in the production of high quality pearls in recent years has also impacted them. Andre Hodel explained that, the effects of global climate change have influenced pearl farming and hence pearl supply. Among them, the El Nino effect and the increasing seawater temperatures are the major factors. Moreover, many pearl farms needed to be restructured after the economic crisis in 2008. As a result, production of top quality pearls has decreased especially for large ones. “Although there is still an abundant supply of pearls in the market, supply of the quality species that we require has dropped,” he added.
“The years following the 2008 financial crisis have left many luxury markets in difficulties. Still now, in 2016, we are facing some great challenges,” Adrian Hodel stated the industry’s current condition and Hodel’s strategies to survive the still stagnant economy. “It is our firm belief that in order to perform well and keep our competitive edge during these tough times, we must better understand our customers’ ever-changing needs, as well as continue to provide innovative high quality pearl jewellery and services like we always do.”
At present, Hodel Switzerland focuses on several markets worldwide, including the Middle East, Southeast Asia and Europe, with Asia, especially China, being the prime market.
The company has opened up the mainland China market a couple of years ago by using the shop-in-shop strategy to penetrate the high-end pearl market where they are well-known and recognised by savvy Chinese consumers who are keen on European luxury jewellery. “Our near future’s target market is definitely China, as there are still a lot of opportunities and huge purchasing power for high-end jewellery in the country,” noted Adrian Hodel.
Apart from traditional sales channels, the exposure and effectiveness of the ever-growing online and mobile platforms will also be taken into consideration by Hodel for brand building and market expansion. “If we tap the Chinese online market successfully, we will have access to the huge population of young consumers who already have an established habit of online shopping,” Adrian Hodel expressed.
He also stressed that nowadays many people prefer buying jewellery online, which will undoubtedly change the landscape of the jewellery industry worldwide.
Although it is hard to predict where or in what direction prices of different categories of pearls will head for, Adrian Hodel projects that consumer appreciation for pearls and pearl jewellery will never fade, considering the current level of demand for pearls and the supply shortage of high-quality pearls.
“For centuries, the precious pearls have been desired by royalties and nobilities from different cultures and time periods. In today’s world, pearls still carry a sense of elegance with them,” Adrian Hodel concluded. “We do believe that pearls are a timeless type of products that will never go out of fashion and style. We might even argue that without pearl jewellery, an individual’s jewellery collection is simply incomplete.”
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