RAPAPORT… Starting with JCK Las Vegas in the beginning of the month, followed by the Shanghai show and ending with the Guangzhou and Hong Kong shows, June was a busy month for Chinese buyers.
As a major international pavilion at the JCK show from June 3 through 6, the China Hong Kong Pavilion housed approximately 200 Hong Kong–based companies, most of which have manufacturing facilities in Mainland China, along with several companies based directly in Mainland China. The pavilion has been organized by the Hong Kong Jewelry Manufacturers’ Association (HKJMA) since 1992.
Diversifying Supply
In recent years, for a variety of reasons, the JCK show has become more intriguing to Chinese buyers, although their presence still is not as strong as at the Asian shows. In 2011, a Rapaport China Buyers Group of nine Chinese companies visited JCK, after a similar trip to the show the year before. Generally, the Hong Kong shows are easier to access and more convenient to source goods than JCK Vegas. Las Vegas is around a 13-hour flight from Shanghai, and Hong Kong is only 2.5 hours by air. Visas for U.S. travel also are more difficult to obtain, and it is obviously easier to get around in Hong Kong due to the common language.
However, recent market shortages in well-cut polished diamonds have increased the awareness among Chinese buyers that they must source in other regions, including the U.S. The continued popularity of 1-carat diamonds, the new interest in a broader range of diamond sizes and qualities, as well as more attention being paid to fancy colors have also strengthened dealer interest in coming to the U.S. for goods. The trade members who relied on Indian goods in the past are now exploring more purchasing channels and are more convinced than ever that diversity of sourcing is one way to secure their businesses.
The buyers who attended the Vegas show commented that they had the opportunity not only to see current suppliers, who also exhibit at the Hong Kong and India shows, but to meet new suppliers, too. In addition, the shopping and entertainment attractions in Las Vegas are a good reason to attend.
On the other hand, Chinese buyers feel that the U.S. market absorbs different goods than their own market, and that the Vegas exhibitors sometimes do not bring sufficient goods suitable for them, especially EX cut goods. As a result, buyers are considering increased communication with the exhibitors as to what they need and want before the start of the show if they come again next year. Also, some buyers asked the JCK Vegas exhibitors to bring specific goods they were interested in to the June Hong Kong show running from June 23 through 26 so they could get a closer look at them before placing orders. Overall, the buyers felt that coming to Las Vegas expanded their vision on products and trends since the diamond industry in China is relatively new, developing fast and has a lot to explore.
Expanding Shanghai Show
Jewelry Shanghai 2011, from June 16 through 19, is the most important trade show in East China and the biggest one in the first half of the year in Mainland China. Open to both the trade and consumers, it featured approximately 700 exhibitors from 22 countries and regions, with 1,100 booths in almost 237,000 square feet of exhibition space.
The Shanghai Diamond Exchange (SDE), one of the show’s organizers, hosted its own pavilion of 22 SDE exhibitors, and the non-SDE members exhibited in a separate diamond zone. The Antwerp World Diamond Centre (AWDC) had a pavilion of 11 exhibitors, including AWDC itself. The first-ever Indian pavilion at the Shanghai show featured three diamond exhibitors and the Gem and Jewellery Export Promotion Council (GJEPC). Many exhibitors regarded the show as a good opportunity to make contacts, although sales were limited. The foot traffic was good, but it is sometimes difficult for those who sell wholesale to know who are corporate buyers and who are consumers.
Gemologist Training
In an important expansion of gemology education in China, the Gemological Institute of America (GIA) announced that students in China could enroll in GIA’s six-month on-campus Graduate Gemologist (GG) program in Shanghai, beginning July 11, 2011, at the School of Media and Design on the Shanghai Jiao Tong University campus. Previously, the only options for students in China were to travel to other countries for studies or to enroll in distance education and lab classes in China. Visas can be difficult to obtain for the six-month programs for study in foreign countries and distance learning can take longer than classroom instruction. GIA certificates are widely used and accepted in China, and those with GG credentials are scarce but often hold important positions in the trade, so the news of GIA on-campus education is considered an important development.
The Marketplace
- The retail market cooled down in June and wholesale trading softened — which is customary at this time of the year in China — but demand is still steady.
- Shortages exist in rounds in .30 carats to 1.10 carats, D-H, VS-SI, Gemological Institute of America (GIA)-certified diamonds in Triple EX and Double EX cut grade, with none to faint fluorescence. Triple VG goods also are selling well.
