HK Jewellers Retain Sparkle in Global Trade
Hong Kong’s flourishing jewellery industry is dominated by fine jewellers offering a diverse selection of products embellished with diamonds, coloured gemstones and pearls in classic and modern designs. Buyers can choose from an expansive range of medium-priced to big-ticket items.
According to a research report by the Hong Kong Trade Development Council, Hong Kong manufacturers have built an expertise in producing pure gold items as well as those adorned with smaller stones. The city is also renowned as a major centre for jade jewellery, and a leading trading and distribution hub for pearls.
A great deal of manufacturing processes is carried out in China, mainly in Shenzhen and Panyu, although some high value-added activities are still done locally. Hong Kong’s jewellery sector has also benefited from the expansion of the local market as well as tourist spending.
The onslaught of the coronavirus crisis in 2020, coupled with local and geopolitical challenges, however put a dent on the city’s jewellery exports and retail sales.
With global vaccination drives gaining ground, Hong Kong’s jewellery industry is now on the mend. Latest government data showed that jewellery exports in May 2021 were 61.7 per cent higher than last year’s although still lagging behind by 2.87 per cent compared to 2019.
Retail sales in May 2021 also improved – rising by 53 per cent from 2020 but the figure is still 54 per cent lower than what was recorded in 2019.
Major retailers however remain optimistic and are training their sights on potential areas of growth such as the Chinese market.
According to Luk Fook Holdings (International) Ltd and Tse Sui Luen Jewellery Ltd, visible gains in China due to strong domestic consumption arising from a more stable Covid-19 situation as well as continued overseas travel restrictions could bode well for Hong Kong jewellers.