“VICENZA ITALY’S FALL 2003”

OROGEMMA JEWELRY SHOW

BUYER TRAFFIC DECLINES BY 15% This years Orogemma fall fair, the last of the three Vicenza, Italy, jewelry trade fairs of 2003 left many exhibitors wondering if business could get any worse. The international exhibition of gold jewelry, silverware and watches was held September 6 – 11, 2003. There were approximately 1,500 companies exhibiting. The reported 15,000 buyers in attendance was down approximately 15% from the 2002 fall show that had a reported 17,477 buyers in attendance. The mood of both exhibitors and buyers was unexpectedly low key, especially given the better than expected recent international trade data from the US and Japan. Lower sales figures for the first half of 2003 may help explain the caution in the market. Italy saw jewelry exports down 35% in the first half with most holding out little hope that the Christmas season will give a huge boost to the stagnant Italian export market. Opening day saw little traffic and few buyers. One buyer observed that when first entering the show he thought there must have been another world disaster like 9/11/01 because there was no one in the aisles. The second day traffic increased somewhat with local Italian buyers in attendance because retail stores are closed on Sunday. The remainder of the show saw very slow traffic and few sales. Some long time exhibitors said they had never seen anything like it. The dismal buyer turn out was being attributed to the generally slow world economy and the long-term economic crises in Europe. Another year like the past few and the European economy may be in a real depression. The dollar being weak and the Euro strong is also hurting sales a great deal. Most notably absent were the important American buyers. You had to look long and hard to see even one American buyer. With the American market making up 40% to 50% of the jewelry consuming public worldwide, the absence of their presents at the show hit especially hard. Be it for business or pleasure, the Americans are just not traveling to Europe anymore. Americans can feel the anti-American sentiment throughout Europe ever since the Iraq war and have decided to stay home or take their business to Asia or elsewhere where they feel welcome. It looks as though the shows in Europe may not get better any time soon lamented one disappointed exhibitor. Many said if the Americans would not come to Europe, they would have to go to them. The newest addition to this years fair was the Hong Kong Pavilion. The Hong Kong Pavilion was held in a free standing building a block or two away from the main show event. There were 78 Hong Kong companies attending. Many of these same exhibitors had been expecting to exhibit for the first time in Vicenza at the earlier June 2003 event. Show management due to fears of the SARS epidemic canceled the Hong Kong group’s attendance at the June Vicenza show. This followed the cancellation of the Hong Kong pavilion at the 2003 Basel Fair earlier in the year and created a great deal of economic stress on the Hong Kong jewelry industry. Hong Kong has suffered greatly this year due to the worldwide fear of SARS. Being located so far away from the main show did not make for an auspicious beginning for the Hong Kong group. Traffic was very light and few companies reported having good business. The only buyers that seemed to find the building were those established customers who had been invited prior to the shows opening and knew where to go. The Hong Kong jewelry industry’s influence is expected to have a serious impact on the Italian jewelry trade starting in 2004 due to the “Closer Economic Partnership Arrangement“ (CEPA) that Hong Kong will initiate with the Chinese mainland in 2004. Under the CEPA plan, some 270 categories of Hong Kong-made goods can enter Mainland China tariff-free, and advantages will be granted to some Hong Kong service providers. This will make the cost of Hong Kong jewelry products to the Chinese market even lower. To help make exhibitors more aware of CEPA, the fair organized two conferences on how Italian companies could profit from the China market after the agreement signed by Hong Kong and Mainland China goes into effect. There is a perception among Italian manufacturers that Hong Kong can avail itself of privileged access to the Chinese mainland market, consistent with WTO rules, thereby strengthening its role as a bridgehead for foreign investments in a market with extraordinary potential. The show had many interesting exhibits. In addition to jewelry, Orogemma also presented Il Salone dell'Orologio (the watches pavilion) and "Tempo d'altri tempi", the market exhibition for collectable timepieces. One of the most eye-catching events at the Fair was the Gem Fest, organized by GIA Europe. It analyzed and explained the "new" American market, after 11th September 2001, and its effect on the world jewelry trade. Another interesting exhibition was The Platinum Guild’s concept of light blue and pure platinum products. As the Indian market has become more important and gained exposure in the world markets, many companies presented charm bracelets with Indian ethnic and oriental appeal. Prominent were trembling rings, small and large breastplates, and faceted "boule" of colored stones. It all is reminiscent of and reminds you of the ethnic, sensuous movements of the Indian dances. Indian styles are going to be featured in an upcoming Milan exhibition dedicated to the land of the maharajas, with designer catwalks, where the jewelry of the famous manufacturers and designers will be featured, attesting to the new Indian jewelry trends. Of note at the show were rings, earrings and bracelets in yellow gold with ruby and sapphire rondelles. Trembling rings with a motif of leaves made of gold and enamel were hot seller with many buyers showing a lot of interest. Fruit and vegetable designs represented a new trend away from the more traditional flowers, leaves and animals. There was a trend for jewelry in the style of the 1940’s featuring elegant and sophisticated brooches many with a wildlife motifs. With the current economic situation the mixing of precious and semi-precious materials is as much of a necessity as it is a style. The demand is for comfortable, lower price point products such as jewels that are like fashion accessories, interchangeable and even unisex. The jewelry world is responding with leather bracelets, rings and necklaces enhanced with gold, silver, gemstones and diamonds. Big rings dominated in colorful crocodile and reptile leather with stones such as obsidian, ivory, jade, hematite, and diamonds. Pieces like ebony, ivory and gold bracelets and bronze rings were noted. Bulky geometric shaped bracelets, made of 24-carat gold leaf, coated in transparent resin were also a showstopper. Buyers were looking for gold bracelets that are solid in appearance crafted in the hollowed-out technique to keep prices low. Also of interest was styles with squared meshes and very thick fillings. Elegant thick mesh bracelets in yellow gold, studded with diamonds and colored stones were eye catching and popular. The traditional cross pendants studded with diamonds were simple and strong in design. Among watch presentations, exhibitors confirmed a trend already evident at earlier trade shows: large watches with sporty looks, innovative materials and many, many diamonds. Women's diamond watches were styled to be colorful and easy-to-wear. The Orogemma Vicenza show had everything but serious buyers!!!