A Tale of Two Shows

By William George Shuster, Senior Editor -- JCK-Jewelers Circular Keystone, 1/1/1997

Economic growth has been good for the jewelry industry – and at least one of the tradeshows that support it – in Southeast Asia

There’s a powerful explosion in Southeast Asia. It’s an explosion of buying power as jewelry industries and consumer markets mushroom, spurred by growing economies in developed and developing nations, including China.

“The economic boom that Asia is experiencing, combined with rising affluence of the Asian consumer, offers good prospects for growth [and] further development of the intra-Asian jewelry trade,” says Sng Sow Mei, regional director of the Singapore Trade Development Board.

Consider the diamond business. The value of diamonds sold in jewelry in East Asia already is a fifth of the world’s total and still climbing. In Taiwan alone, two-thirds of the 25,000 couples who marry per year buy a diamond ring a carat or more in size. And De Beers is launching a new campaign aimed at the “more mature Asian woman” who enjoys diamond jewelry.

As local markets expand, Far East jewelry makers are shifting focus from the West back to Asia. “We share similar culture and languages,” says a major jewelry maker. “With the growing markets, it makes sense to concentrate more effort here.”

In turn, this affects trade shows. While U.S. vendors and buyers complain about there being too many shows, Asians can’t get enough. Hong Kong has five, including one launched in December. Japan has two with a third set for Osaka in February 1997. Thailand has three, and rumors say a fourth might come soon. Singapore has three. China, Malaysia and Taiwan each have two. India, Indonesia and South Korea each have at least one. Most are titled “international,” but the foreign buyers and vendors they court increasingly are Asian.

Here is a closer look at two shows. One is Asia’s largest jewelry fair, the other is a small show trying to attract more attention. Yet changes in the Asian market are affecting both their futures.

September Hong Kong Jewelry & Watch Fair

Though 18 years old, only in recent years has this become the most important jewelry fair in Asia. There are several reasons.

Its timing is perfect for buyers coming with year-end shopping lists and following-year marketing plans. Hong Kong’s roles as the world’s fourth-largest jewelry exporter ($1.1 billion in 1995) and Asia’s gem and jewelry trading center are contributing factors.

And the show is strategically located at the doorway between Asia and the rest of the world, a fact underscored by the official visit to this year’s fair by Liu Sheng Yu, vice general manager of the China National Pearl, Diamond, Gem & Jewelry Import & Export Corp. The relationship between the jewelry industries of Hong Kong and China since a 1984 Sino-British agreement (returning Hong Kong to China July 1, 1997) have “developed vigorously,” he says. This has enabled the fair to become “bigger and bigger and to attract jewelers from different parts of the world.”

Support: The show, owned by Miller Freeman Asia Ltd., the Asian arm of the world’s largest trade show operator, is well-run and pleasing to the eye. Indeed, some foreign visitors and vendors call it “Basel East,” a nod to the huge, elegant watch and jewelry show in Basel, Switzerland. And like Basel, many regional and global industry groups hold special events in conjunction with the fair, cementing its role as a central event for the Asian industry.

Possibly the most important factor in its current – and future – success is support of Hong Kong’s major jewelry associations and organizations. All either officially cosponsor it or serve on its brand-new advisory board. A significant example is the Hong Kong pavilion (with 510 exhibitors covering two floors) organized by the Hong Kong Trade Development Council. The council, which promotes Hong Kong’s industries, ran its own September jewelry show cosponsored by several Hong Kong associations until 1995, when it agreed to organize the Hong Kong pavilion in the Miller Freeman show instead of continuing a separate fair.

But success is straining the show, which uses all seven floors of the huge Hong Kong Convention & Exhibition Center. Big and crowded, it can be daunting for foreign visitors. An expansion of the Hong Kong Exhibition and Convention Center is expected to be completed in time for the 1998 edition of the fair.

Exhibitors: The 1996 show (held Sept. 18-22) was its largest yet, with 1,441 exhibitors from 37 countries; 70% of the exhibitors were from the Asia/Pacific region. Most were from Hong Kong, but there were sizable groups from Thailand, Japan, India, Taiwan, Singapore, several Southeast Asian and Pacific countries, even Vietnam.

Despite the growing web of national shows in Asia, many industries consider the September Hong Kong show an important forum in which to present themselves internationally. Thailand’s government, for example, sponsors a pavilion at the fair to reinforce the country’s international trade status in the jewelry industry, says Boonyong Assarasakorn, president of the Thai Gem and Jewelry Traders Association.

Such attitudes from vendors have helped to make the five-day event the most comprehensive collection of Asian jewelry products in the world.

Buyers: The fair’s growing importance to domestic Asian markets and to U.S. buyers was evident at the 1996 show. Though its 32,605 visitors were just a fraction over the 1995 total, the number of non-Hong Kong visitors increased significantly. Forty-three percent came from overseas (from 82 countries or regions), up from 36% in 1995. The biggest percentage gain was the U.S. (up 34% to 1,811).

In a season when recession slowed European and Southeast Asian jewelry sales, vendors welcomed the return of Americans, still the largest market for Hong Kong jewelry. “We’ve certainly seen more customers from America this time than in past years, especially more wholesalers,” says Peter Sui, director of World Jewellery, a leading Hong Kong platinum jewelry maker. “That’s a good sign. When they come, it means America’s economy is stronger and stable again.”

However, the sway Americans hold may wane over time. “While Americans are essential – indeed, the basis of our show’s success – the new development is growth of the Asian consumer,” says Peter Sutton, director of Miller Freeman Asia Ltd. “There are millions of people with more money to spend, especially in Thailand, the Philippines, Indonesia and Malaysia, and Asian manufacturers are turning more attention to these markets,” says Sutton.

Here are other glimpses of the 1996 Hong Kong show:

•Despite recession in much of Southeast Asia, business at the show was strong, unlike some other recent Asian fairs. Two-tone gold jewelry, diamond jewelry (both with classic, conservative styling dominating) and pearls (South Seas and freshwater) did healthy business, especially among U.S. and Japanese buyers. Demand for pearls is one of the show’s successes. “I’ve been coming for five years,” says Pamela Trauthen, president of Ocean Gem, a South Seas pearl vendor from San Francisco, Cal. “Back then I was the only South Seas pearl dealer here. Now there are four pages worth [in the show catalog].”

• Demand for platinum is growing. Most of the precious metal goes to Japan, though that is changing. “There is also more demand among Chinese,” says Madalaine Tsung, manager of jewelry products and refining for Johnson Matthey Hong Kong Ltd. “The Chinese consumer wants white gold but finds the natural pale color comes off after a while,” she says. “So platinum is increasingly taking its place, as Chinese manufacturers invest in more equipment to make high-quality platinum and in joint ventures with Hong Kong companies.”

• Asia’s growing interest in gemology was evident. One in five visitors was a gem manufacturer or trader; one in six came for precious stones. Gemology dominated show seminars. The Gemological Institute of America’s Hong Kong branch presented lectures by renowned Swiss gemologist Dr. Edward Gübelin and sessions on new research. The Gemmological Association of Hong Kong had seminars on pearls and jade treatment, while the Diamond High Council of Antwerp gave an update on diamonds and technology. Also well-attended was Vietnam’s session on its gems and development of its gemstone jewelry industry.

Broadway Nights During Ja Show

Blocks of tickets for three Broadway shows have been reserved for those who attend the JA International Jewelry Show, to be held Jan. 25-28 in New York, N.Y.

Tickets for Chicago are available for Jan. 24-25 and Jan. 28, tickets for Once Upon a Mattress are available for Jan. 24-25 and tickets for Rent are available for Jan. 25-26. For an order form, call the Blenheim Group at (800) 829-3976, ext. 178 (tickets cannot be ordered by phone; the order form must be used.)

Show attendees also can take advantage of special hotel and travel savings offered through Expo Travel Inc., 215 E. Ridgewood Ave., Suite 205, Ridgewood, NJ 07450; (800) 829-2281, fax (201) 444-0062.

Ja Las Vegas! Party To Benefit Charity

The National Jeweler magazine party at the JA Las Vegas! Show will benefit the International Retail Jewelers Charity Fund. The party will be held on Feb. 3 in Caesar’s Palace during the show, which runs Feb. 2-4.

The fund contributes to St. Jude Children’s Research Hospital, The Foundation Fighting Blindness, Make-A-Wish Foundation, The Diabetes Institutes Foundation, Mother’s Voices, National Multiple Sclerosis Society, The Chemotherapy Foundation and City of Hope. The fund has raised more than $1.6 million to date.

Foreign Show Update

Macef Spring 1997 will be held Feb. 7-10 in Milan, Italy. The multitrade fair will include significant exhibits of jewelry and watches. This will follow are successful fall edition of the fair, which attracted 121,571 buyers. In the U.S., contact (212) 459-0044, fax (212) 459-0090.

The second Internation-al Exhibition of Gold, Jewellery, Silverware, Watches, Precious Stones, Case Articles and Machines will be held March 15-19 in Santa Cruz de la Sierra, Bolivia. Last year’s inaugural show attracted 110 exhibitors and about 450 buyers who placed orders estimated at $25 million to $30 million. G.I.F.O. Inc., 825 S. Bayshore Drive, Tower III, Suite 1741, Miami, FL 33131; (305) 579-9920, fax (305) 579-9985.

Showcase Ireland will be held Jan. 19-22 in Dublin. More than 600 Irish exhibitors will offer giftware and decorative accessories, fashion apparel and accessories, jewelry, home textiles, specialty foods, contemporary crafts and more. Irish Trade Board, 345 Park Ave., New York, NY 10154; (212) 371-3600, fax (212) 371-6398.

The Focal Point Area at the International Spring Fair in Birmingham, England, Feb. 2-6 will feature about 120 exhibitors offering silver and costume jewelry, silver and glass perfume bottles, clocks, mirrors, tableware, music and trinket boxes. F.P. Exhibition Management Ltd., 76 Main Rd., Long Bennington, Nr. Newark, Nottinghamshire NG23 5DJ, United Kingdom; (44-1400) 281-937, fax (44-1400) 282-051.

The International Frankfurt Fair next month in Frankfurt, Germany, is expected to be the largest spring edition ever, with more than 5,100 exhibitors expected from about 90 countries. The show will be held Feb. 14-18 in the Frankfurt Fair and Exhibition Center. Jewelry, clocks and watches will be housed in the gift pavilion of the multitrade show. In the U.S., call (404) 984-8016.

The Japan Jewellery Fair in Yokohama in September attracted more than 14,000 visitors and 224 exhibitors. This year’s theme was “In Search of Originality,” aiming to provide products that are original in design and presentation. Next year’s fair will be Sept. 3-5 in Tokyo.

The Malaysia International Jewellery and Watch Fair will be held Jan. 16-19 at the Putra World Trade Center in Kuala Lumpur, Malaysia. The fair is open to the trade only; and organizers expect more than 10,000 buyers. Brilliant-Art Trade Fairs Ltd., Rm. 1101, Tung Wai Commercial Building, 111 Gloucester Road, Wanchai, Hong Kong; (852) 2511-6077, fax (852) 2507-5855.

International Jewellery London celebrated its 40th anniversary in September with more than 6,000 visitors and a 17% increase in attendance. The next show will be held Sept. 7-10.

Asian Design

Technically, fine jewelry made in Asia equals any in the world. However, original design and “Southeast Asia” aren’t synonymous in Western minds the way “Italian,” “German” or “French” immediately say “beautiful jewelry.”

That may change. International jewelry organizations, Asian jewelry manufacturers and trade shows are encouraging innovative work by talented local designers with awards, designer galleries and other incentives.

The Taipei International Jewelry & Timepiece Show, for example, has an annual design contest whose winners are showcased in a fashion show that would do a Paris runway proud. Since 1996, a Designers Gallery has allowed visitors to see winning designs up close.

Asian designers are also getting more recognition in – and learning more techniques from – competition. In 1996, two Taiwanese designers won top awards in a De Beers-sponsored contest. A platinum piece by World Jewellery, a Hong Kong company, was honored by the Platinum Guild International, and a gold necklace, bracelet and ring by a Hong Kong designer won the Grand Award for Best Set Design in the World Gold Council’s Chuk Kam Jewellery Design Competition, judged by a international panel of judges.

This WGC winner – inspired by a rice bowl – shows why Asian designers have trouble cracking American and European markets. Their work is too Asian, say some Western buyers, not only in motifs, but also in the choice of materials.

Though masters with coral, jade and pearls, Asian manufacturers are weak in designing with precious gems and other materials popular in the West, says the head of a large Asian company. And that lack of experience can inhibit efforts to promote Asian design worldwide. In Taiwan, for example, fine jewelry (most designed locally) sells well. “But many manufacturers don’t have confidence to compete with it internationally,” says Richard Chen, president of the Taiwan Jewelry Industry Association.

Encouraged by opportunities in emerging jewelry markets and industries, more young people are going into design, says Karl Shen, president of the Hong Kong Jewelry Manufacturers Association, and more schools offer classes in it. “Design is booming,” says Eugene Chaing of GIA-Taiwan. “More people sign up for classes than we can accommodate.”

Today’s young designers are creating more original jewelry. “It used to be some companies told designers 'copy this’ design,” says Shen. “But young people today are too independent and creative and can’t be pressured to do that.”

They also have more chances to travel and broaden their design expertise. Many companies like Shen’s take employees to Basel in Switzerland, the JCK International Show in the U.S. and shows in Japan for wider exposure to design trends and style.

Asian design comprises not only the old and the new, but also an effort to bridge the East and the West. King Coral, a leading Taiwan manufacturer of expensive coral jewelry, recently unveiled its High Fashion line, an expensive Italian-designed collection of red coral, platinum and diamonds for sale in Europe.

So is there a distinctive Hong Kong or Taiwanese design style? Not yet, say many Asian jewelry makers and designers. But in the words of one, “we could see it within five years.”

The Taipei International Jewelry & Timepiece Show encourages local designers with an annual design contest. Winners are showcased in a fashion show, at an awards ceremony and in this Designers Gallery.

Taipei International Jewelry & Watch Show

By William George Shuster, Senior Editor

This eight-year-old fair is Taiwan’s spotlight on its jewelry and watch industries. But as Asian shows multiply and the September Hong Kong Jewelry & Watch Show cements its position as Asia’s most important fair, Taipei struggles to keep its place on stage.

Located in the modernistic Taipei World Trade Center, the compact show is a model of efficiency. This is thanks to its organizers, the China External Trade Council, a government agency; the Taiwan Jewelry Industry Association; and the Taiwan Watch & Clock Industrial Association. It also provides a forum for matters essential to the success of Taiwan’s jewelry industry.

Award-winning jewelry creations are encouraged and spotlighted in jazzy fashion shows and in the show’s designer gallery. The show also stresses the need for professional education. “Demand for gemological and professional knowledge is getting better,” says Eugene Chaing of the Taiwan branch of the Gemological Institute of America. “The older generation thought experience was everything and gemological knowledge useless. But in the current generation, we see many people who know they need gemology and are signing up for training.”

Catering to that interest, the 1996 show presented seminars on gemstones and pearls, an exhibit of coral, crystal and agate carvings from private collections and amber from Denmark’s Copenhagen Museum.

Domestic show: Despite its good intentions and “international” claim, the show is a domestic affair. It does little to encourage foreign participation or bring in buyers, which is surprising in the county’s export-driven economy. Indeed, the show has grown little in its eight years and may even be shrinking. The 1996 event had 277 exhibitors, only 35 from outside of Taiwan, down from 47 in 1995. And while the U.S. is a major market for Taiwan fashion and fine jewelry, there were fewer Americans at the show this year, say vendors. Most foreign visitors were from Hong Kong, Japan and other nearby Asian countries.

The 1996 fair’s figures support this. While it had 17,328 visitors, just 5% were from outside Taiwan, almost 16% fewer than in 1995. Attendance from the two top sources of foreign buyers – Japan and the U.S. – was down 19% and 27%, respectively. Privately, some CETRA officials concede the show’s long-term survival is uncertain unless, as one put it, “there are reforms.”

Yet Taiwan has a strong market and a growing fine jewelry industry that includes successful international companies such as Polijim Jewelry and Lupearl Corp. There is a solid manufacturing base with skilled workers and entrepreneurial operators producing high-quality product. And it’s a leading equipment manufacturer for American and European brand jewelry. So what’s the problem?

Competition from other Asian shows, especially the huge September Hong Kong Jewelry & Watch Show, which usually abuts or overlaps the Taiwan show, is part of the problem. (This year, the Hong Kong show is Sept. 3-7, the Taiwan show is Sept. 5-9). CETRA officials say this is intentional, so the Taipei show will attract foreign buyers going to or from Hong Kong. But, in fact, the Hong Kong show draws away some buyers and – officials admit – some Taiwanese exhibitors.

Industry observers have other suggestions:

• More government support is needed. There has been little effort by the government to develop beyond a domestic show or even promote the fine jewelry industry, say some jewelry exhibitors.

• Organizers will have to bring in more foreign buyers and vendors. Though it invites foreign journalists, the Taipei fair is basically a home-town show. To gain more international attention, it must promote the show overseas and provide incentives to bring foreign buyers to the show, say Taiwanese jewelry companies.

• Image is a factor. The show itself “gives people a wrong image of us,” says Richard Chen, president of the Taiwan Jewelry Industry Association. “They think no fine jewelry is made in Taiwan.” In fact, a sizable section of the show is devoted to fine jewelry. About 30% to 40% of jewelry made in Taiwan is fine jewelry – most of it consumed by the local market. About 10% of it is expensive high-end jewelry.

• There has to be more product geared to Western tastes for Western buyers to come. “This is not really geared to the American market – the styles are too Asian for American tastes,” says Frank Callahan, import director of Jae Inc., a Florida wholesaler and one of the few Americans at the show.

• To broaden the appeal, the show’s exhibitor base must include more jewelry manufacturers – right now many show vendors are retailers who also make jewelry – and more non-Taiwanese companies.

One obvious source of potential exhibitors are Taiwanese companies that invest in China, says Thomas Tsou, executive director of CETRA’s exhibition department. Some 30,000 Taiwanese companies in all types of industries have investments or partnerships on the mainland. Until recently, however, no Taiwanese company that invested in China was allowed to be in the jewelry show. That ban was lifted in August. “Now any company that manufactures in China can exhibit in the fair, starting in 1997,” says Tsou.

Another potential source comes from mainland Chinese companies. Tsou’s department has petitioned the Taiwan government to let them participate in the show as soon as possible. “To grow, we need companies from China,” he says.

Guadalajara show: Signs of recovery

By Robert Weldon, Senior Editor

Even in the toughest of times, Mexicans view their problems with a great sense of humor.

“There are really two solutions to our economic crisis, one technical and one miraculous,” explains a jeweler at Guadalajara’s Expo JOYA ’96, Mexico’s largest jewelry show. “The technical solution means going to church to ask our Virgin to create a miracle. The miraculous solution entails asking our government to fix things.”

Two years after an economic crisis that devastated the value of Mexico’s peso, manufacturers and jewelers from Guadalajara’s “jewelry bread basket” are making a comeback, though there’s a continuing distrust of the Mexican government. Sergio Diaz, an official at JOYA ’96, says things certainly do look better. “For us the show is a point of departure,” he says. “We feel the worst is now behind us. But we’re still on a razor’s edge.”

One sign of recovery, say officials of JOYA ’96, is an increase in the quality of manufactured jewelry. The Regional Chamber of Commerce for the Jewelry and Silver of the State of Jalisco offers quality analysis tests. Oscar Herrera, an official at JOYA ’96, says he sees a trend toward better products. A chamber-organized Club de Calidad, a quality club, has increased from three to 18 members.

More stimulus for recovery comes from abroad. “Foreign competition has forced us to look abroad and tighten our ship,” he says. “Not enough of our manufacturers are exporting yet, but there certainly is more interest in exports. NAFTA tariffs are about at zero, and this is a big catalyst for change.”

Yet many Mexican manufacturers and jewelers look at their domestic market for signs of recovery, hoping economic revival will fuel a ground-swell of demand for jewelry. The domestic market, with a strong jewelry-buying tradition, is returning. But buying still tends toward lightweight silver and goldplated items with occasional use of synthetic gems. Most in demand are rings, bracelets, medallions, chains and religious charm jewelry. Distinct ceremonial occurrences mark the jewelry-buying highlights for Mexican consumers. Roman Catholic baptisms, first communions, quince-aneras (a young woman’s coming-of-age ceremony) and engagement and wedding rings constitute much of the ceremonial demand for Mexican jewelry.

Domestic Buyers: Americans might have a hard time understanding who buys jewelry at Mexico’s shows and how jewelry is sold in Mexico. Observers say some 70% or more of Mexico’s jewelry is distributed via a complex network of people who buy a selection of jewelry at a show, then return to their homes and sell to neighbors, family members and other interested parties. Often the sellers have other professions and moonlight in the jewelry business. These individuals offer convenient pagare, or layaway plans. If their clients have good credit, the jewelry goes out on a memo basis.

For these buyers and sellers, objectives at JOYA ’96 seem similar to those of any jewelry show shopper around the world. “I go to the shows to study prices, to see what’s new, to fill special orders I have brought from my villages and to get better deals,” says one shopper.

Adds another: “There is a good crop of corn in our village and people are getting in the mood to buy jewelry again.” This buyer says his moonlighting has increased from $5,000 in 1995 to about $10,000 in 1996. From this level, it looks like recovery is on the way.

Jis Scores In Miami

By Robert Weldon, Senior Editor

The Jewelers International Showcase Miami shows traditionally attract buyers from the Southeastern United States, the Caribbean and Latin America. The 1996 event, held Oct. 19-21 in the Miami Beach Convention Center, was no exception. According to Michael Breslow, the show’s organizer, economic recovery in Mexico and the Caribbean contributed to a stronger show. About 15% of buyers were from outside the U.S., and Breslow says he expects that percentage to grow in the future.

“The Miami Beach venue was excellent until the Mexican peso fell, which affected so many other South American neighbors,” he explains. “But we’re getting back to the high point now. The South Americans are coming out of the woodwork. We are seeing interest from as far south as Chile, Venezuela, Argentina and Brazil.”

Breslow says the show’s delivery policy helps local and international buyers to avoid customs problems. “We have about 625 booths and offer competition for the best value.” he says. “Our show is close to the holidays, yet it gives buyers enough time to plan an effective seasonal strategy.”

The show had a mix of merchandise, mostly concentrated in a mid-range price point, targeted to South American, Mexican and Caribbean buyers. Several companies offered gold and silver chains, and there were a number of loose gemstone suppliers. According to buyers, 14k gold jewelry sells strongly in the Central American region, but South Americans prefer higher karat gold. “The Caribbean buyers are our forté, and they come here to buy gold merchandise mostly,” says one exhibitor.

Another exhibitor, Marcos Posternak Sigal of Marco Pazzi S.A. of Mexico City, says “There is not enough locally in Mexico to satisfy the Mexican market, and with our economic crisis, we’ve had to look abroad.” Posternak agrees that a recovery of sorts is occurring in Mexico. “Our exporting infrastructure is growing with relative success,” he says. “I want to export to stores that cater to the Latin market right here in the United States.”