The March Hong Kong Jewellery Show, organized by the Hong Kong Trade Development Council, set new records with some 37,000 buyers and more than 2,800 exhibitors during its five-day show. Clearly, optimism for a recovery in the sector is growing.

Hong Kong was the prime destination in March for the gem and jewellery sector. Global in scope, the show featured some 2,830 exhibitors from 46 countries and regions (up by 200 over last year), making it the most international of the HKTDC’s fairs, as well as the largest.

This international nature was also reflected in the 16-percent increase in the number of buyers, of which the number of overseas buyers increased by 23 percent, led by Hong Kong’s three major export markets for fine jewellery: the United States (22-percent increase), Switzerland (up 6 percent), and France (30-percent increase). Visitors from the emerging markets were also up, led by the BRIC nations: Brazil (up 29 percent), Russia (up 27 percent), India (up 41 percent), and China, with a 33-percent increase in buyers attending the show over last year.

The export figures from Hong Kong, the world’s fourth-largest exporter of fine jewellery after Italy, the United States, and Switzerland, also confirm that the sector has been improving since the global economic crisis: exports of jewellery reached US$4.4 billion in 2010, a 21-percent increase by value over 2009, although still lower than the peak of US$5.2 billion seen for the first half of 2008 before the financial crisis hit. In terms of volume, the percentage increase was similar.

What is driving these exports? During the opening ceremony, Lawrence Ma, chairman of the HKTDC Jewellery Advisory Committee, explained, “The upswing is driven, in good part, by the Chinese mainland and its growing appetite for jewellery. Last year, jewellery sales in China totalled around US$30 billion. And the mainland is expected to become the world’s biggest market for luxury goods over the next decade.”

Another part of Hong Kong’s increased exports is due to the recovery underway in the United States and the European Union, according to Ms. Margaret Fong, HKTDC deputy executive, who went on to discuss the increasing demand by Asia and the emerging markets. In particular, she explained that China has a 200 million-strong middle class, which is growing by one percent per year, and that this vast market already accounts for 15 percent of the world’s total luxury market. By 2020, this is expected to grow to 44 percent, thus overtaking Japan. In terms of the segmentation of Hong Kong’s jewellery exports, Fong went on to explain that gold and jade are the strongest categories, followed by diamonds, and diamonds set with yellow gold, with great demand coming from India and China. Pearls are also coming up due to the rise of South China cultured pearls, making Hong Kong now the trading and distribution centre for these living gems.

On a more informal note, many exhibitors also indicated that demand from China is helping fuel the recovery in the gem and jewellery sector. A number of coloured stone and diamond dealers stated that business was brisk, with buyers coming largely from China and India. Notable also was the presence of so many jewellery exhibitors from Europe and the USA. Clearly, they are looking towards the thriving Asian market, following the economic crisis in the West where consumer spending has been greatly reduced. As a plus, having a presence at the Hong Kong fair offers the double advantage of potentially attracting the attention of not only the Asian buyers but also the many buyers who come from their home countries.

In terms of European participation, Italy was designated as the show’s first “partner country,” and Italian designers offered an array of well-crafted and stylish jewellery that was featured at the “Jewels of Italy” gala dinner on March 5, as well as at the stands in the Italian pavilion. Other national pavilions included Brazil, China, Columbia, Germany, India, Japan, Korea, Malaysia, Philippines, Singapore, Spain, Sri Lanka, Taiwan, Thailand, Turkey and the USA, as well as seven pavilions from trade organizations.

Among the highlights of the show was the Eighth International South Sea Pearl Jewellery Design Competition, sponsored by HKTDC and the South Sea Pearl Consortium. Another highlight was the Twelfth Hong Kong Jewellery Design Competition, held under the theme “The Glory of Spring.” Organized by the HKTDC and a number of other Hong Kong jewellery-related organizations, the competition attracted more than 370 entries, from both student and open categories. Entries were judged on creativity and innovation, aesthetics and craftsmanship, marketability, wearability and topic relevance.

In terms of colours and trends, just about everything could be seen in Hong Kong this March, from simple metal, to gemstone-set pieces, to elaborate coloured and diamond-studded creations. An array of stylish jewellery from designers around the globe offered something for every taste and pocketbook. One increasingly noticeable mini-trend, however, was multi-use and interchangeable jewellery, as well as the increasing sales of rough and included gems for direct use in jewellery. While these stones would have been discarded or ignored for jewellery use in the past, we have seen an increase in creative designs that seek to emphasize the beauty of these natural gems. A few of the many original and remarkable creations seen in Hong Kong in March are shown on these pages

The next edition of the HKTDC-sponsored fair will be held earlier next year, from February 16 to 20, 2012, due to changes in the international calendar of global jewellery fairs.