Vegas Holds More Appeal

RAPAPORT… In recent years, for a variety of reasons, the JCK Las Vegas show has become more intriguing to Chinese buyers. This year, a Rapaport Buyers Group of eight Chinese companies attended the show, the second destination for the group after the 2009 IIJS Show in India. Motivated by an increasing awareness of international diamond sourcing opportunities, the greater range of goods being demanded by their customer base, larger travel budgets and easier access to travel visas for the U.S., Chinese buyers can be expected to return to JCK Las Vegas again.
 
The largest international pavilion at the show this year, which ran from June 4 to 7, the Sparkling China Hong Kong Pavilion occupied two locations on the first level of the Sands Expo & Convention Center. Approximately 200 Hong Kong–based companies, most of which have manufacturing facilities in Mainland China, and several companies based directly in Mainland China exhibited in the pavilion, which has been organized by the Hong Kong Jewelry Manufacturers’ Association (HKJMA) since 1992.
 
For many years, the JCK show was a very distant venue for Chinese buyers, who usually attend the Hong Kong shows in March and September, where they can find what they need easily. Until recently, it also has been quite difficult to get a travel visa to the U.S. In addition, Chinese buyers previously bought a lot of smaller diamonds, which are easier to find at the Hong Kong shows. However, the size of diamonds selling in China is increasing quickly and many consumers accept 1-carat stones now. There is even occasional demand for bigger sizes, as well as fancy colors.

A decade ago, Hong Kong itself was the epicenter of the country’s manufacturing universe, with hundreds of tiny factories in the city producing millions of pieces of jewelry. With the return of Hong Kong to China in 1997, the majority of the manufacturing moved to Shenzhen and Panyu, the Mainland China cities closest to Hong Kong. The move made full use of highly motivated local labor available at a reasonable cost to keep Hong Kong in place as one of the world’s leading jewelry exporters. The U.S. has long been the leading importer of jewelry made in China, followed by Europe.

Antwerp Diamond Day

Antwerp Diamond Day, held in the Belgian-EU Pavilion at the Shanghai World Expo 2010 on June 7, was a highlight event for the pavilion. Organized by Antwerp World Diamond Centre (AWDC), the event also led off the Antwerp Diamond Week festivities being held in the same venue. The event provided networking opportunities for expo attendees to learn about AWDC and to meet representatives of Antwerp diamond companies. An educational seminar and lectures by leading authorities on scientific diamond research were also presented.

During the week, the “Diamonds Love Antwerp” quality label was officially launched in China, to signify the knowledge and trust, craftsmanship and heritage, integrity and transparency of the Antwerp diamond tradition. Through a unique and exclusive partnership with the Shanghai Diamond Exchange (SDE), AWDC will promote Antwerp diamonds on the Chinese market, exporting them directly from the Antwerp Diamond Office to the SDE, which will have the right to issue the “Diamonds Love Antwerp” certificate as a trademark for quality.

The Antwerp Diamond Week was popular with dignitaries. Antwerp Governor Cathy Berx officially opened Antwerp Diamond Day. A gala dinner was organized by the City of Antwerp and the Province of Antwerp at the Consulate General of Belgium on June 8 for representatives of the leading economic sectors of Antwerp and their Chinese counterparts.

Learning to Network

As part of the week’s events, HRD Antwerp, the commercial subsidiary of AWDC, officially inaugurated the Belgium HRD Association China, a noncommercial trade association established to promote networking opportunities among graduates of HRD Antwerp courses. Members will have a direct link to the AWDC for obtaining up-to-date information about diamond industry developments and for establishing communication channels between the Chinese and Belgian diamond sectors.

Speaking at the inauguration, Marc Brauner, chief executive officer (CEO) of the International Gemological Institute in Hong Kong (IGI Hong Kong), said education is vital to the growth of China’s diamond market. He noted that education will enable the trade members in China to view, evaluate, present and sell diamonds in a more professional way, in order to better ride the waves of the never-resting market. On the other hand, he said, education will create a new generation of knowledgeable consumers.

The Marketplace

• The retail market quieted down after the May Day holiday, which resulted in a slight slowdown in wholesale activity. Overall, the market is stable. Buyers are sensitive about price increases.
• Demand is good for 0.30-carat to 1.10-carat, D-J, VVS-SI, GIA-certified and preferably EX stones.
• Demand is stable for parcel goods in 0.20-carat to 0.30-carat, H-J, VS-SI.
• The 1-carat, round, low-color SI without certificate is a hot item for promotional items but it is also very price sensitive.
• Demand is good for World Expo–themed jewelry, decorations and gold and silver bars.