The Israeli Diamond Industry will be one of the largest participants of the Hong Kong International Jewelry Show, which will take place between March 5-9. This year's show will see, the Israel Diamond Pavilion, organized by the Israel Diamond Institute Group of Companies (IDI),  be the largest national pavilion.

The Israeli Diamond Pavilion will feature 60 companies, 20 of them first-time exhibitors.  Twenty additional Israeli companies will be exhibiting in various locations throughout the show.
Look for real-time updates from the show in IDI posts on Twitter, Facebook and Flickr.

IDI sources say that the unprecedented participation of Israeli companies asserts the overwhelming interest the Israeli diamond industry is getting in the Asian markets.

The Israel Diamond Pavilion is located in Hall 3F. IDI’s information booth is located at 3FF29 in the heart of the pavilion and will provide background on the Israeli diamond industry, as well as help buyers find their way throughout the pavilion.

An online mini-site, which can be accessed through the IDI portal, enables buyers to visit the pavilion virtually prior to the show. The mini-site includes contact details of all Israeli exhibitors, including those not participating in the pavilion, as well as a map indicating their location at the show.

Hong Kong is Israel’s second largest market for polished diamonds, representing 26% of total polished diamond exports in 2009. Net exports of polished diamonds to Hong Kong in 2009 came to $1.043 billion.

IDI Chairman Moti Ganz said that now more than ever, Hong Kong, as the gateway to the Far East, is a major focus for the Israeli Diamond Industry: “For many years we have developed excellent relations with diamond companies in Hong Kong and other parts of the Far East.

This will certainly develop as these markets are showing impressive growth. We see the Far East as the direction of the future for Israeli diamond companies and we are working hand in hand with the industry to promote these efforts."

 “Our industry, which is known for its flexibility and adaptability, is seeking to expand its efforts in these markets. This explains the huge participation of Israeli companies in this show, many of them for the first time," IDI Managing Director Eli Avidar said, adding that the Far East, with Hong Kong leading the way, represents a growth market for Israeli diamond exports now and in the future.

Avidar was also optimistic about the long term prospects for Asian markets: “China has evolved into an independent market for luxury goods and jewelry, with a great amount of wealth being created. In the coming years we believe that China will become an important consumer of polished diamonds, and we are focusing our marketing strategy on developing this as well as other markets."

According to Avidar, IDI’s Hong Kong office was spearheading efforts to enhance trade contacts with the region. In addition, he noted that IDI’s Chinese-language portal site has become an important vehicle for facilitating direct contacts between these countries.

While visiting the Inhorgenta Europe 2010 fair in Munich, it was the Lapponia booth the caught my eye.

The international Finnish jewelry company used the exhibition – which is the biggest in Germany – to celebrate its 50th anniversary. Germany is Lapponia’s biggest market.

Lapponia is a subsidiary of Kalevala, which focuses on selling jewelry exclusively to the Finnish market.

Lapponia, the international branch, operates in Germany, Scandinavia, Britain and Japan. Lapponia offers sleek, elegant designs, crafted in gold, white gold, silver, platinum and diamonds.
Lapponia and its production line are based in Helsinki, but the company employs jewelry designers worldwide and has at its disposal designers for, France, Hungary, Taiwan, Denmark and, of course, Finland. They express their vision whilst basing their designs on Lapponia's signature inspiration, derived from Finland's climate, nature and vistas.

Marja Paavolainen, Lapponia's export manager, answered a few of my questions.

How were your holiday season sales?

"We're very pleased by our holiday season's sales. We had a great start to 2010, in light of some successful cooperations with international buyers and we're hopeful ahead of 2010."

What characterizes Lapponia's spring collections? Which shapes, materials and sized?

"I would like to start by saying that Lapoponia adhere to its own conceptual line rather than to general, changeable trends. The spring collection features jewelry suitable for the younger consumer as well, like necklaces with leather straps and metal pendants in various sizes."

Some of the pendants are set in diamonds, as seen in the picture below – 12, 80-point diamonds.

As for Germany, your biggest export market, are the jewelry purchased by local consumers or by foreigners and tourists?

"In Germany, jewelry is bought mainly by local consumers. Lapponia's designs, especially those marketed in Germany, are suited for the German consumer's taste – clean, precise lines."

I was also interested in knowing whether there is a difference between consumption in southern Germany, which is considered a wealthier region, and northern Germany, whose larger cities belong to East Germany. Lapponia's sales agent for south Germany said that there were no significant differences, other than those noted in the salespeople's efforts.  

The international competition for young designers

As part of Lapponia Jewelry's 50th anniversary celebrations, the company held the Next Episode competition, meant to encourage young designers to create contemporary artworks.

The competition entailed two phases: nearly 140 participants from 26 countries sent their entries for the first stage. Seventeen of the designs submitted graduated to the second phase, where mock up models were produced.

Finnish designer Mari Isopahkala was named the winner. Her entry, "Pisara" ("Drop"), introduced sophisticated solutions and has great potential in terms of varying and extending the concept further.

The outcome was the most complete in the competition – combining inspiration, a theme and name, esthetics and solutions into a beautifully finished composition.

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It seems that British-Australian mining giant Rio Tinto is eying the world’s second largest diamond market – China. 

Rio Tinto will be opening a Hong Kong office, which will join Rio Tinto’s diamonds sales and marketing branches in Belgium, India and the US. The move aims to support the marketing of all rough diamonds from Rio Tinto’s mines.

Rita Maltez has been named head of the Chinese operation. Maltez has been with Rio Tinto since 1999, and has been involved in the development of the company’s emerging markets strategy for diamonds.

“This is a strategic decision that reflects Rio Tinto’s long term commitment to the diamond industry and the important role that China will play in this future. We look forward to fostering new relationships as China’s development continues,” Jean-Marc Lieberherr, the diamond miner’s general manager of diamonds sales and marketing, said.

Rio Tinto stated that the new Hong Kong office will facilitate the development of a market in China for its diamond productions, and customers’ activities.

The astronomical growth China has experienced in the last decade, including during the global financial crisis, has created a new nation of consumption, which is nearing western proportions. With 1.3 billion and counting, the highest number of young millionaires and new companies opening daily, it’s no surprise that many international companies – from everyday fashions to luxury goods – are looking to expand into China.

One of the secrets to succeeding in China is working with local experts who understand the Chinese market, since penetrating it is not as easy in getting into the more developed, western markets. The only exception seems to be Google.

Google’s entry to China was made somewhat late in the game and only after it seemingly took over most of the world. Nevertheless, Google has recently claimed that the Chinese authorities hacked into users’ email accounts in an attempt to follow human rights activists.  Beijing denied any involvement, but Google has already announced that it was reconsidering its Chinese venture. Will Google be the first company to pull out of the Chinese market? 

A delegation from the Israel Diamond Institute is scheduled to meet with representatives of the Chinese diamond industry, as part of the HKTDC Hong Kong International Jewellery Show, set for March.

Two months ago, a Chinese diamond industry delegation visited Israel for a series of meetings meant to cement the cooperation between the Israeli and Chinese diamond industries. The future, they said following the meetings, is looking bright.