A TNJ Bureau Report

Year 2014 is slated to witness a transformation of the gems and jewellery industry, a change that is evident will only be accelerated by a string of important exhibitions and shows that will be organised in important parts of the gem and jewellery economy. Trade shows and exhibitions have always been an integral part of the industry, more so in times of distress and economic slowdown. Brands, companies and products have been evolving with time and thanks to the platform that the trade organisers unleash each year, large and small entities have always benefited. Right from gaining local ground to globally expanding territories, corporates in the jewelley industry have made themselves an integral part of trade shows and are in a position to plan their growth and expansion based on the choice of shows.

In a situation where there is a paradigm shift in business centres from the West to the East, it becomes highly impossible for the trade to seek new area’s for doing business. New area’s in the sense of not only stock movement but also the basic culture, tradition, and understanding the aesthetics of the markets that they wish to expand. From appointing distributors and agents to opening up own offices, it sometimes becomes a herculean task, forget the huge investments required. Be it large or small, every jewellery house is looking at hand holding or support from the different sectors they can garner. Certain economies such as Middle East, Malaysia, Singapore etc also do offer B2B2C shows wherein the exhibitor gets a dual advantage to display and sell his products not only to the trade visitors, but also to end consumers.

In times such as these, Trade shows come as a boon and saviour to many industry set ups so much so that they can save the companies from perishing in their local land. Trade associations of respective economies work closely with the exhibition organisers year after year to provide a life changing platform for industry corporates and unveil an unbiased competitive spirit for the trade to venture. The recently held Vicenza Oro as well as the Antwerp Diamond Trade Fair have been successful in lifting the spirits of the industry with Vicenza showcasing exquisite collections with an amazing mix of color gemstones and steel jewellery as well as Antwerp Diamond Trade Fair getting accolades for connecting economies such as China, Turkey, India etc to the Antwerpen Diamond Hub. Why should a company look at participating with a Trade show? Some of the factors are:

Expanding horizon : Trade Shows provide a neutral platform for companies and showcase their products in an untamed territory. This is an important factor that companies look at. Be it slowdown or a good market, jewellery companies do look at expansion and growth and currently any dynamic business house has made participation in trade shows a compulsion. Annual budgets are earmarked for the same and a lot of entities conduct ‘test marketing’ to understand the demography as well as the psychography of selected markets.

Product Plan : Once the trade show participation is finalised the exhibitor can plan the ‘product display’ pattern during the show. He can either choose from his existing range of products or get into local taste and demand before displaying the said designs. In the process of ‘test market’ he understands the need and demand of that local market and normally gets close to meeting the said need.

Appointing Distributors / Retailers / Agents : This is an important task undertaken by most of the exhibitors in a trade show. The participant, if serious in business, gets into appointment of retailers / distributors who can work in his supply channel and develop the same in the local market. It is but natural that the promoter cannot be present in all the countries of expansion, the agents, distributors or retailers act as his representative by which he can expand business.

Opening own office / outlet : This would be the ultimate dream of any company, to open an own office or an outlet in foreign land. It goes without saying that Trade shows can initiate businesses for companies which can potentially run into million dollar worth of business for the future.

Though it is an advantage to participate in trade shows, it doesn’t come cheap for the participant. He has to shell out around a million dollars if he has to participate in 3 or 4 major shows globally. This apart from production, logistics and other aesthetic costs attached. It also thus becomes important to regularise the Trade show organisers / associations / companies to control their costs and balance the participation fee according to the scale of the company. Some exhibition also has a wait list and unless an existing participant quits, his place cannot be taken by new comers.

This has to change as trade shows should allocate booths on ‘draw’ or ‘lots’ wherein every company gets an opportunity to participate and display his products. International organisers should too look at easing the customs and other regulatory procedures for foreign exhibitors and most importantly look at the cost structure so that more and more companies come looking out for business who inadvertently enhance the employment opportunities and trade ties.

Year 2014 will see more of ‘designer jewellery’, alternatives such as steel, copper etc. Color gemstone, pearls may pick up pace in comparison with Diamonds. Light weight Gold will rule as Platinum would become a viable alternative this year as well.

Machinery segment will become aggressive as right education and proper promotion through trade shows will lead to the trade learning to optimise their production year on year. The New Jeweller Bureau has in this edition interviewed leading personalities in the trade show organising committees worldwide as well as association heads to give you a firsthand view of what 2014 holds for the industry.

Sylvie Ritter
Director - BaselWorld

Influence of Baselworld

To understand what Baselworld is about, we need to appreciate that it’s a truly global event which is attended by the world’s leading watch and jewellery brands. In this role, Baselworld is quite independent of the various market developments. What we have seen at Baselworld, though, over the past few years, is a clear increase in the numbers of visitors from the Asia-Pacific region.

The MCH Group has been organizing Baselworld since 1973. The event’s prime focus is very clearly on showcasing the global watch and jewellery market. And that’s reflected in the fact that it’s always attended by the world’s leading and most successful brands.

The watch and jewellery segment operates in a relatively stable market environment, as international economists will confirm. Looking ahead, we feel that the emerging economies could be particularly interesting in business terms: countries like Mexico, Indonesia and Malaysia, to name just three. And China is sure to continue to play a major role in the industry’s further development.

I think we need to qualify that. Trade shows are expensive if they don’t deliver enough return on the investment. I’m absolutely convinced that no exhibitor at Baselworld need ever worry on that score!

Issue XX 2014

Renate Wittgenstein
Product Manager - Inhorgenta Munich

Global Market Scenario:

Sale of jewelry and watches strongly shifted towards the Asian market in the past 10 years. In 2003, 45 % of the worldwide expenses for jewelry and watches were spent in Europe. Currently its share is only 30 %. Of course, this has also an impact on the trade fair landscape. However, despite the business shift to Asia, the INHORGENTA MUNICH recorded rising visitor numbers in the past years since the establishment of the exhibition.

There is always a good mixture of existing and new participants. For many years we are continuously working with numerous exhibitors. Yet, we usually gain between 50 and 100 new participants each year. Furthermore, we witnessed a considerable increase of international exhibitors in the past 3 years. Hence, the exhibition has also grown. That is why we opened an additional hall last year.

Primarily, the USA is a country with a high import rate of jewelry and watches. In this aspect it differs from many European countries that are strongly export-orientated in this segment. Therefore it is hard to compare them. Certainly, the aim of every company is to conquer new markets and to further internationalize, because this strategic orientation minimizes risks and increases sales and preferably return at the same time.

Indeed there are trade fairs that raised their charges for exhibitors. In favor of the participants, we have maintained the charges at a constant level. We are a fair and reliable partner for each exhibitor.



Year 2014:

Markets are always changing. Hence, each market has to be considered independently. But in general, it can be said that markets in Europe are rather stagnating or decreasing concerning retail, while Asian markets experience growth. This also affects the prices for end consumers and purchasing behavior. But in this context the INHORGENTA MUNICH operates in a very stable market environment.

Sam Willoughby
Event Director - International Jewellery London

Influence of jewellery trade shows:

I think that jewellery trade shows continue to play a very influential role within the jewellery industry - both in the West and East. They provide an unique showcase of international brands and designers for buyers and retailers who are not always able to travel beyond their local markets due to economic factors. So events like IJL - which attracts companies from around the world - give exhibitors and visitors alike, the opportunity to meet key international contacts in London each year. Furthermore, from our experience of being part of Reed Exhibitions, which has a global network of successful jewellery shows which include JCK in Las Vegas, Bijorhca in Paris, International Jewellery Kobe and International Jewellery Tokyo, this cross-fertilisation between West and East is vital to maintain the growth and buoyancy of the industry worldwide.

Growth of IJL Show for the past many years:

A large proportion of exhibitors at IJL return each year, because the event not only delivers the quality of visitors they are looking to do business with, but also provides an excellent networking opportunity. Each year however, the show also attracts exciting new iconic and emerging brands like Links of London, Sif Jakobs Jewellery, Fope, Al Coro and Ponte Vecchio, which maintains the vibrancy of the show. Despite the economic difficulties during the past few years, international brands have continued to exhibit at IJL as they appreciate that the UK market is an important retail destination, especially for luxury fine jewellery. This is the reason that we are launching LUXURY by IJL this year and already acclaimed US brands like Christopher Designs and CASSIS have come on board.

Global Market Scenario:

From our perspective, we would recommend the UK for the reasons I have already mentioned - especially as the jewellery industry here is showing positive signs of making a strong recovery, in line with the improving economy. Compared to most other countries in Europe, the UK is doing well and recent GDP growth in the UK has led to a 5 year high in confidence as people are willing to spend more.

Pricing Strategy:

Whilst I cannot comment on other markets or shows, the cost of exhibiting at IJL is in line with inflation in the UK. Furthermore, the value of business done in just three days of exhibiting, is easily recouped through the deals that are made onsite. A company can do a year's worth of business in three days. It must not be forgotten too that trade shows are equally about making invaluable business contacts, who not only deliver business at the show but also during the remainder of the year. As the organisers of IJL, we are also committed to making the event as cost-effective as possible for our exhibitors. For instance, we invest heavily in ensuring that the look and the design of the show provide the perfect environment in which to conduct successful business. Another example of this is the Diamond Club, which we are expanding in 2014 to ensure that it has a truly international reach, bringing senior VIP buyers from across Europe and overseas to the UK, to see both IJL and LUXURY by IJL in the new venue at Olympia.

Year 2014:

Overall, I think the game changer in 2014 is going to be the continuing growth of contemporary luxury and fine jewellery which is seeing a resurgence in popularity and sales. Another game changer is the increase of self purchase by women, whether it be of jewellery from well established or new cutting-edge designers.