Will the Shenzhen and Hong Kong fairs, in March, be good indicators of the Chinese market?

The 12^th “China International Gold, Jewellery & Gem Fair” will open its doors in Shenzhen, from February 26 to March 1, 2014. It will be followed by the “Hong Kong International Diamond, Gem & Pearl Show” from March 3 to March 7. Could this be a way to sound out the Chinese market?

While the demand for diamonds proved satisfactory in all segments of the market during the first few months of 2014, caution still prevails. Rough diamonds prices always increase faster than polished diamonds prices – whose growth must be attributed to a decline in supply that generated shortages in certain ranges – and the holiday season in the US has brought mixed results, with polished sales remaining flat. The Indian market, having fallen back in 2013, remains unfavorable. As for the rich Chinese, they reportedly reduced their spending on luxury products by 15% in 2013 (slowdown in growth, anti-corruption campaign and taxes on luxury products in China). Yet, on the occasion of the Lunar New Year, Chow Tai Fook announced a 34% jump in sales in mainland China.

It is in this febrile atmosphere that the industry’s next sales event, the China International Gold, Jewellery & Gem Fair – Shenzhen, will take place, from February 26 to March 1, in the heart of the Shenzhen Convention & Exhibition Center. The core pieces of the Chinese designers’ new collections will be presented, and the Chinese jewelry and high-end jewelry market players will discuss future opportunities during meetings.

From March 3 to March 7, Hong Kong will be hosting its international fair, the Hong Kong International Diamond, Gem & Pearl Show. Held within the AsiaWorld-Expo center, this fair will, among other things, give its visitors the opportunity to attend the launch of Diamond Services Ltd.’s DiamaTest system, which is reportedly able to detect synthetic diamonds…

Let us hope that these trade fairs will be able to provide some indications regarding future trends for the Chinese high-end jewelry market, before making plans for the industry’s next big global events: Baselworld 2014 at the end of March, and JCK Las Vegas at the end of May-beginning of June.