Hong Kong’s retail sales are expected to decline by 5 percent to HK$460 billion (US$59 billion) for the full year, dragged down by economic uncertainty, social unrest and a decline in mainland Chinese tourists, according to international advisory firm PriceWaterCoopers (PwC). The estimate is a downgrade from its earlier forecast of a 3 percent drop in sales, reflecting a weaker outlook, as government statistics showed first-quarter retail sales falling 2 per cent compared to the same period last year, according to PwC’s Global Consumer Insights Survey 2019 report,
The Hong Kong Jewellery & Gem Fair last week (20-23 June) provided a snapshot of a cautious diamond industry in the midst of a period of weak sentiment and even weaker demand, according to several traders we spoke with this week. And they do not see any quick fixes on the horizon. While it may not be the largest diamond show of the year, Hong-Kong June is the most important mid-year jewelry sourcing event in Asia, and as such provides us the opportunity to take the pulse of the polished diamond trade. The consensus? Sentiment is poor.
‘Wait and see’
Hong Kong based jewelry retail and bellwether for the Chinese market Chow Tai Fook Group (CTF) has announced that its sales grew 13% to $8.5 billion (HK$66,661 million) for the year ending March 31 (FY2019), citing increased purchases of gold jewelry and an expansion of the company’s retail network in China. Retail sales in Mainland China rose by 8% to $3.88 billion, while revenue from Hong Kong and Macau increased 12% to $2.94 billion.
Leading Hong Kong jeweler Chow Tai Fook is expanding in North America, this week announcing the establishment of a "business hub" in Boston to supply products and services - jewelry and technology - on a wholesale basis to US retailers. Chow Tai Fook North America (CTFNA) says it "will offer customized, specialty collections in the diamond and fine jewelry segments, as well as private label offerings, to address the evolving needs of jewelry consumers." CTFNA, which owns diamond jewelry brands Hearts on Fire and Mémoire, recently moved Hearts On Fire President Caryl Capeci into the role of
Hong Kong’s retail sales of jewelry, watches and other valuables in January 2019 were up 4.7% year-on-year after falling by 5% in December, according to statistics released by the HK government, as increased tourism from the Mainland and early Lunar New Year shopping lifted overall retail sales. The Hong Kong Tourism Board reported that January tourist arrivals rose to 6.78 million, up 27% from January last year, with the number of visitors from the Mainland - good for more than 80% of the total visitors - increasing by 35%.
One of the bellwether jewelry brands and the largest jeweler in China, Chow Tai Fook, has reported that same-store-sales of gem-set jewelry in Q4 2018 declined by 5% in mainland China and 8% in Hong Kong and Macau “amid an uncertain macroeconomic environment.” This marks the first quarterly decline in two years for the company despite China’s lowering of its jewelry import tax by an average of 20.7 percent last summer, which was expected to bolster sales.
The 24-carat pear-shaped, fancy yellow Moon of Baroda diamond famed for its association with Marilyn Monroe sold for $1.3 million at the Christie’s Hong Kong jewelry auction on Tuesday, easily beating estimates of $500,000 to $750,000.
Christie’s in Hong Kong will auction on 27 November the 24.04-carat pear-shaped, Fancy Yellow Moon of Baroda diamond Marilyn Monroe wore to promote the release of the Howard Hawk’s 1953 film, Gentlemen Prefer Blondes. It could be value anywhere from $500,000 to $750,000, perhaps more. Christie’s will also auction an autographed photo of the actress wearing the stone. The picture has a presale valuation of $10,000 to $15,000.
Russia's ALROSA has sold 2,234 carats worth of special size rough diamonds (larger than 10.8 carats) at an auction in Hong Kong, earning $10.7 million in sales revenue at an average price of $4,790 per carat. The 2,234 carats derived from 136 gem-quality diamonds, including 25 fancy yellow stones weighing 440 carats in total. 54 companies from Hong Kong, mainland China, Belgium, Israel and India took part in the auction.
Leading Hong Kong jewelry retailer Chow Tai Fook is the latest company to turn to blockchain technology to enable its customers to know the origin and authenticity of the diamonds they are buying.
Rio Tinto’s iconic Argyle Pink Diamonds Tender is being showcased to connoisseurs and collectors from across Asia in Hong Kong; the miner has also unveiled a one-of-a-kind pink diamond and emerald necklace during a world exclusive preview in Hong Kong. Headlining the 2018 collection of 63 pink, red and violet diamonds is The Argyle Muse, a 2.28 carat polished oval diamond, the largest purplish red diamond ever offered at Tender. Rio expects it will be highly sought after by collectors and connoisseurs from Asia where the colour red is highly symbolic.
Russian diamond mining giant ALROSA is planning to showcase a unique collection of large, fancy-colored diamonds at the Hong Kong Gem & Jewelry Fair in September, reports Rough & Polished. The collection of diamonds the miner will showcase includes 250 stones of different shapes and colors (including very rare colors) - purple, pink, orange and vivid-yellow - and is said to be the largest collection of fancy-colored stones the company has ever presesnted.
Bellweather jewelry group Chow Tai Fook built on its 2017 sales gains by recording a solid first fiscal quarter of 2018 (three months ended 30 June 2018), citing "impressive growth" in the Hong Kong and Macau market. Benefitting from "improving local consumer spending and an increase in visitors from Mainland China", retail sales surged by 21% in Hong Kong and Macau, while same-store sales (SSS) increased by 26%. Sales on the Mainland also fared well, increasing by 11%, with same-store sales up 4%.
Following successful auctions of special size rough diamonds (weighing over 10.8 carats) in Vladivostok, New York, Israel and Dubai, Russian miner ALROSA earned total sales revenue of $10.4 million at their latest auction in Hong Kong, which is more than 1.5 times higher than the starting price. In total, 100 gem-quality lots with a total weight of 1,550 carats were sold. The companies from the largest diamond trading centers, including Hong Kong, Belgium, Israel, India, the UAE and Russia, attended the auction. 28 firms were recognized as winners for different lots.
Calling financial year 2018 a "year of recovery", leading jewelry retail group Chow Tai Fook, a bellweather for China's jewelry landscape, reaped the benefits of the retail market in Greater China regaining its upward momentum, leading to a vibrant performance for the group. Chow Tai Fook’s sales and profit rose during the fiscal year in the rising Chinese market, with the retail sector also noting increased tourism to Hong Kong as having a positive impact on sales.
Russian diamond mining giant ALROSA will hold the auctions for the sale of special size rough diamonds (+10.8 carats) in Hong Kong and Vladivostok this June. The auction in Hong Kong will take place on June 13-27, where the company will auction 105 gem-quality lots with total weight of 1,620 carats. The second auction will be held on June 18-29 in Vladivostok, where company plans to auction 130 gem-quality lots with total weight 2,149 carats.
Hong Kong's imports and exports of rough and polished diamonds saw a solid to significant upswing across all categories during the first quarter of 2018 (Jan-March), according to figures published Diamond Federation of Hong Kong, China. Polished diamond imports to the trade hub increased by 10% in value to $5.17 billion from the import of nearly 5.3 million carats worth of the polished gems. Hong Kong's exports and re-exports rose by 4% to $3.53 billion from 3.7 million carats.
Coronet, a Hong Kong-based diamond jewellery brand has set another Guiness World Record, this time for the "Most diamonds set on a handbag" with nearly 10,000 embedded in a Coca-Cola-inspired accessory. This Coca-Cola bottle-shaped diamond handbag contains 9,888 pieces of natural diamonds, weighing 120 carats, and took 15 highly skilled craftsmen nearly 100 days to complete, showcasing the utmost creativity and extravagance, Guinness writes. The bag is set with 8,543 black diamonds and 1,345 colorless diamonds.
Russian diamond mining giant ALROSA held auctions of rough and polished diamonds at the Hong Kong International Diamond, Gem & Pearl Show two weeks ago, earning a total of $16.3 million. The United Selling Organization (USO) ALROSA sold 112 special size (over 10.8 carats) rough diamonds with the total weight of 1,787 carats, earning US$13.5 million, for an average price of $7,555 per carat. ALROSA Deputy CEO Yury Okoemov said, “The Hong Kong auction with 50 participating companies demonstrated that demand for rough diamonds of this size category remains stable.
Swiss watch exports saw their strongest growth in more than five years during 2017, according to the Federation of the Swiss Watch Industry. with Hong Kong and mainland China representing the top two markets for Swiss watches. This trend continued to start off 2018, as January sales in Hong Kong rose 21.3 percent to grab a 15 percent of the market, while sales in mainland China surged by 44.3 percent to reach 10.9 percent of the market, overtaking the US.
Is it appropriate for the diamond industry to offer mass quantities of loose one-carat diamonds at these events? What is the message we are sending to the high-end consumers who frequent trade fairs, if they see high-end diamond jewelry pieces at one booth, and then loose diamonds in large quantities offered at wholesale prices at another booth? Does this help us promote diamonds as a rare creation of earth or harm those efforts? Isn’t it clear that we are hurting our own business with these actions?
ALROSA plans to hold two auctions of rough and polished diamonds at the Hong Kong International Diamond, Gem & Pearl Show, taking place from February 27 to March 3, 2018, the company writes in a press release. ALROSA's United Selling Organization (USO) auctions special size rough diamonds over 10.8 carats, and will be putting 121 gem-quality lots with a total weight of 1,949 carats up for sale during the show. The weight of the largest diamond is 47.08 carats.
Leading Chinese jewelry retailer Chow Tai Fook reported a 5% year-on-year increase in same store sales (SSS) for the three-month period ended December 31, 2017 (Q3 FY2018) in its key markets of Mainland China and Hong Kong & Macau, reflecting solidification of the recovery in demand and increasing points of sale. Overall retail sales value in Hong Kong and Macau was flat year-on-year for the third quarter, but recorded 12% growth in Mainland China.
Two leading Hong Kong-based jewelry retailers, Chow Tai Fook and Luk Fook, delivered strong results in the second quarter of their respective financial years ending September 30 2017, signalling the sustained recovery of the Greater China market after a prolonged slump. Chow Tai Fook reported a 15% increase in retail sales in Mainland China and a 12% rise in Hong Kong and Macau compared to the same period a year ago. Luk Fook, reporting only same-store sales (SSS), reported 17% growth year on year, including a 16% increase in gem-set jewelry.
HRD Antwerp, Europe’s leading authority in diamond certification, released its new D-Scope+ at the Hong Kong Jewellery and Gem Fair. “The D-Scope has been the indispensable analysis tool for all types of diamonds and gemstones since 2001. Our research and development team has worked very hard to further optimize every aspect of our microscope to create the D-Scope+. With this tool we now offer not only the best, but also the most innovative diamond analysis experience on the market”, said Michel Janssens, CEO of HRD Antwerp.
DIAMONDS ALROSA will auction its own polished diamonds during the Hong Kong Jewellery & Gem Fair in September, the company announced in a press release. The first auction will take place on September 13-17, introducing large colorless diamonds, as well as certified fancy colored diamonds, including yellow, green, orange and purple colors. The second auction will be held on September 19-22. Diamonds of small and medium sizes as well as brown diamonds will be introduced there. “We’ve chosen this assortment in accordance with demand on the Asian market.
Hong-Kong based Chow Tai Fook jewelry Group, China's largest jeweler by market value, reports a 3.9% growth in net profit for the financial year which ended March 31, 2017, indicating a return to profit following a sales decline in Hong Kong and Macau, dating back to Q4 2014. The company told the media that although they had seen a stronger second half, a full-fledged recovery was still some time away.
Christie's Hong Kong yesterday auctioned off the famous 'Jonker No. 5' diamond for $5.3 million, soundly beating the pre-sale estimate of $2.2 million to $3.6 million. The 'Jonker No. 5' is part of a legendary collection of 13 stones fashioned from one of the most famous diamonds in history: the 726-carat piece of rough discovered by Jacob Jonker in South Africa in 1934, which at the time was said to be the fourth largest gem-quality diamond ever recovered. The Type IIa stone is D color, VVS2 clarity, rectangular-cut and weighs 25.27 cts.
Chow Tai Fook has partnered with luxury travel retailer DFS Group, a subsidiary of LVMH, to open its second boutique in the United States on the Hawaiian island of Oahu. The Hong Kong-based jeweler’s branded store will launch in T Galleria by DFS in the heart of Honolulu and close to the iconic Waikiki Beach. T Galleria by DFS is a prime shopping destination for travellers seeking leading international luxury brands; Hawaii is a popular wedding and honeymoon destination, with jewelry fast becoming a key retail category for travellers to the islands.
The world’s largest jeweler, Hong-Kong based Chow Tai Fook, reports strong retail sales growth in the fiscal fourth quarter, reversing 12 consecutive quarters (3 years) of same store sales decline in Hong Kong and Macau, dating back to Q4 2014. The uptick was strongest in Mainland China, where overall retail sales value increased 16% while same store sales rose 12%. Overall and same store sales in Hong Kong and Macau rose by 1% and 4% respectively.
The International Institute of Diamond Grading & Research (IIDGR), part of the De Beers Group, announced a polished diamond grading service partnership with Hong Kong-based jeweler Lukfook. The first partnership with a vertically-integrated Sightholder.
This spectacular 59.60 carat, fancy vivid pink, internally flawless oval cut gem – the largest internally flawless or flawless, fancy vivid pink diamond that the Gemological Institute of America (GIA) has ever graded - will hit the auction block at the Magnificent Jewels and Jadeite sale at Sotheby’s Hong Kong on April 4, where it is estimated to sell for more than $60 million. The diamond came from a 132.5-carat piece of rough mined by De Beers in Africa in 1999 before being cut and polished by Steinmetz Diamonds over a period of nearly two years.
The fourth Hong Kong International Diamond, Gem & Pearl Show (28 February-4 March) and the 34th Hong Kong International Jewellery Show (2-6 March) featured about 4,480 exhibitors, and attracted over 85,000 buyers from 144 countries and regions, up six percent over last year, according to organizer Hong Kong Trade Development Council (HKTDC). More than 33,000 buyers visited the Diamond, Gem & Pearl Show, while some 52,000 visitors attended the Jewellery Show. “Despite economic challenges, especially in the luxury goods market, the two shows attracted a record number of buyers.
Diamond industry analalist Avi Krawitz takes stock of last week's Diamond, Gem & Pearl Show in Hong Kong, as many in the industry were looking to the event for telltale signals of the prevalent mood in early 2017. All reports from the show have been positive, "as Chinese jewelers were looking for goods after being absent from the market for some time", and it was clearly a buyers' market, says Krawitz.
Retail sales in Hong Kong across all categories resigtered an 0.9% drop in value terms and a 1.4% fall in volume terms year-on-year, according to statistics released last week by the HK government.
Polished diamond prices are still soft at the start of 2017, with Rapaport's RapNet Diamond Index showing prices for the benchmark 1-carat polished diamonds down 1.2%, a trend confirmed by PolishedPrices, while IDEX noted a slight rise in February despite, "the downward path seen from mid-2016." Rapaport writes, "Diamond trading this February was slower than in previous years, with buyers pushing for deeper discounts and suppliers expecting firmer pric
As the Hong Kong Trade Fairs get under way, all eyes are on the Chinese retail market and their largest contingent of diamond consumers – the Millennials. Since 2015 luxury jewelers have noticed a growing demand for diamonds by Chinese millennials, aged 18 to 34, who are altering the perception that diamonds are only a symbol of love to be received when getting engaged, married or for an anniversary.
The Antwerp diamond industry is readying to send a large delegation to the Hong Kong International Diamond, Gem & Pearl Show next week, February 28 - March 4. The Antwerp Diamond Pavilion, organized by the Antwerp World Diamond Centre (AWDC), will host over 80 companies and occupy nearly 1,200 square meters of the Diamond Hall at the AsiaWorld-Expo. As an additional feature this year, exhibitors at the Antwerp Diamond Pavilion will have the opportunity to screen their diamond parcels using HRD Antwerp's
The year of the Rooster has officially commenced, and with that, the sales results of the Chinese New Year holiday period have been released. Chow Tai Fook reported mainland China outperformed Hong Kong and Macau’s holiday sales. During this period, between January 14 and February 3, revenue from the mainland rose by 4%, while same store sales grew by 1%. Gem-set sales on the mainland dropped by a whopping 20%, which is likely due to the brand not including the Valentine’s Day sales period this year.
Chow Tai Fook Jewellery Group Ltd., which operates over 2,300 shops in more than 500 cities, indicated strong sequential growth over Q2 2016 after experiencing substantial declines during the past two years amid a slowdown in China's economy and fewer tourist arrivals in Hong Kong.