Editor’s Note
This report from the VicenzaOro show highlights a stark divergence in sentiment between the resilient branded jewelry sector and a diamond market grappling with price volatility and shifting demand.
The latest edition of VicenzaOro revealed a tale of two markets: The jewelry brands displayed an upbeat mood, while many diamond dealers expressed low confidence due to recent price drops.
The show, which took place in the Italian manufacturing hub from September 6 to 10, started quietly, with many commenting that Italian retailers were still busy with the tourism season and picked up with a strong attendance on the following three days. The loose-diamond and gemstone sections didn’t experience particularly high foot traffic. However high-end and fine- and fashion-jewelry brands attracted a noticeable volume of visitors and inquiries.
The sentiment was “very weak,” a third-generation exhibitor in the diamond section, who preferred not to be named, observed.
Others expressed a more bullish outlook. Chetan Jasani, marketing manager at Komal Gems, pointed out the good opportunities for business in Europe as interest rates were going down and tourism was booming.
Bhumik Gajera, director at Millenium Gems, noted the stable demand for parcel goods and fancy shapes but warned against appetite destabilizing following more price drops and lower production.
Among the recurring topics discussed were the problems resulting from reduced manufacturing capacity. The shortage of specific goods, including diamonds in the 2- to 3-carat range and fancy shapes, such as hearts, was on many dealers’ minds. The new sanctions against Russia by the Group of Seven (G7) nations and the measures to detect Russian-origin diamonds were not a major concern, with most shrugging off the issue as irrelevant. As for the increase in gold prices, the consensus was that it didn’t really affect diamond-set jewelry.
Brands known for their gold-heavy signature pieces, such as Peruffo, had a more guarded response.
said CEO Enrico Peruffo.
In the consumer’s mind, the increase in gold prices added to the investment potential of jewelry and could play in the sector’s favor, Komal’s Jasani observed.
Many exhibitors in the jewelry sections noticed that buyers were not ordering for the holiday season yet, because the show took place two weeks earlier than usual (to accommodate the dates of the Bangkok and Hong Kong shows), and it was difficult to decide on purchases in early September.
There was a lot of interest in classic diamond jewelry and exclusive gemstone-set pieces. Filippo Picchiotti, general manager of Picchiotti, shared that his US clients were interested in pieces in the $20,000 to $50,000 range (retail), and diamond-set tennis bracelets and eternity bands had been popular.
Katia Olivucci, designer at Giovanni Ferraris, highlighted intricate titanium creations as trending among top-tier American collectors. She also confirmed that the holiday orders would take place after the show.