All that glitters is gold

A jeweller sets up his stall at the Middle East Watch and Jewellery Show at Expo Centre Sharjah.

Many women will say that dressing up for an evening event is incomplete without a little bit of eye catching jewellery.
Women of all ages love jewellery, and nowhere is that better illustrated than at the 42nd edition of the Middle East Watch and Jewellery Show at Expo Centre Sharjah, where no less than 500 of the world's leading gold, diamond, gems, and pearl jewelers are showcasing the best that the industry has to offer.
The demand for jewellery is clearly on the rise, exhibitors say, with luxurious diamond jewellery proving to be a popular draw. And while the upcoming VAT will prove to have a negative impact on sales, retailers say that the impact will only be a short-term phenomenon, with demand for jewellery picking up in the long-term.
Expo 2020 to drive sales
"The jewellery market in the UAE has its ups and downs, but it has always been a strong market," said Kanishka Bangera, marketing director of Stargems. "Since our business mainly revolves around tourists, the upcoming summer season is going to be a lean period for us. However, business has been good so far, and with Expo 2020 coming up, we are going to be very optimistic about business."
Stargems offers niche diamond jewellery, and the brand differentiates itself from other sellers in the market by offering exclusive western designs.
"Our targets are Western expats and tourists. 2016 was a challenging year because of the shift in oil prices, and that hit us hard. There was some panic and uncertainty in the market and people weren't very willing to spend. However, people that are going to travel, will still travel; and people that are going to be buying jewellery, will still buy jewellery. The products that we sold during the recession were all luxury products, which goes to show the strength of the luxury market here in the UAE," said Bangera.
Diamonds, he added, were still a girl's best friend, and he expected their popularity to continue in the coming years.
Dilip L. Popley, MD of Popley Jewellers, also spoke about the stale sales of the past year. "2016 was a difficult year for us because of many factors such as the shifting oil prices. Disposable income has reduced considerably, but we think that business will pick up by the end of 2017. The Expo 2020 event will bring about a change in the marketplace and we will see the sector pick up in the run up to that event."
Asked about the VAT, he said that the tax will definitely affect sales, because the illusion of a tax-free destination will be gone. "It will be a challenge, since the UAE has long portrayed itself as a tax free haven, and many consumers might find the introduction of the new tax as surprising, especially as they are not used to it."
Speaking on popular items in the market, he noted that in addition to diamonds, emeralds and rubies have been popular with customers.
 
Luxury segment remains strong
Saif Mohamed Al Midfa, CEO of Expo Centre Sharjah, noted that the VAT is not going to have as much of an affect as much as people fear that it will. This, he said, is because the UAE had plans to introduce the tax for a number of years. Other countries that surround the UAE have very heavy taxation structures, so consumers will still choose to spend their money when travelling to the UAE.
"Luxury is luxury; people will still buy it, and this is especially true for jewellery. In fact, during the recession, we were worried that people wont buy jewellery due to the economic situation. However, our 2007 and 2008 jewellery shows did extremely well. It wasn't only the local population that were buying gold, but it was also the expat population in the country," Al Midfa said.
He also pointed out that the strength of the jewellery exhibitions and their popularity with visitors had led them to hosting the exhibition twice a year. "This show is truly international with over 60 per cent of exhibitors coming from all over the world and setting up their country pavilions. Our combined focus on B2B and B2C also proves popular with different consumers. I think we will touch over 65,000 visitors for this edition. Day one of the exhibition already saw a 12 per cent increase over last year's edition."
Wedding seasons mean big sales
Salem Al Shueibi, owner of Salem Al Shueibi Jewellery, is a veteran at the exhibition, participating since the very first show.
"Before the size of the exhibition was small, but we grew along with the exhibition," he said. "We have been with Expo Centre Sharjah since the inception of the event."
The stand, the biggest of its kind at the event, is showcasing the brand's line of diamonds and gold jewellery. Al Shueibi noted that business and sales are dependent on the economic situation of the country, the holiday period, and the wedding seasons. If there are many weddings taking place, then the brand's sales can go up by 20 per cent. If not, then sales drop by as much as 10 per cent.
Sharing his thoughts on the VAT, he agreed that there might be slight difficulties in the beginning when the tax is newly introduced, however sales will slowly pickup as people become accustomed to the tax and adapt their spends.
 
Fashion jewellery is in
Women today want more when it comes to fashion' they want to make a statement, says Abhishek Kankaria, co-founder of Whatever Fashion, accessory fashion designers from India, who are participating for the first time at the event.
"Our collections mainly consist of statement pieces that you wont find in regular market stores," he says. "What we see is a big change in the market right now; the market is moving more towards fashion jewellery. Our collections are all premium niche products that are all handcrafted. Women today want to look different, rather than wearing real jewellery pieces."
Kankaria also revealed that market conditions had not impacted the brand. "We started in 2013 and we are growing almost 50 per cent every year. This is why we have been looking to expand into other markets such as the UAE."
The brand is looking to have a store here in the near future, and is interested in partnerships with local retailers.
- rohma@khaleejtimes.com
 
The occasion matters
 
A special occasion calls for a special gift, and when you are buying a present for a lovely lady, then you can be certain that jewellery will be very well received.
Speaking to Khaleej Times at the exhibition, Farah Habib, a Sharjah resident, said that she was looking to buy a small necklace for her daughter's upcoming graduation.
"We live close by so we never miss coming to this exhibition," she said. "My daughter doesn't wear a lot of jewellery, so when I buy something for her, I make sure that it is something small that she will like."
Habib also noted that there was a lot of variety at the exhibition, so she was really spoiled for choice.
Another shopper, Khulood Abu Bakr, was looking for a small diamond ring for her mother. "My mother loves jewellery so it is the perfect gift to give to her. I'm looking for something beautiful with diamonds, but not very big since she will be wearing it all the time at home."
She also said that she was tempted to buy an extra set of earrings to go with the ring. "There are some amazing deals here, so I think that I will be able to find something to fit my budget."
Deepika Ravi, who was at the event with her husband, said that she had come specifically to look for wedding jewellery for her niece who was getting married in India next year. She also revealed that she had been looking around at various shops for several months now to get an idea of the best deals.
"We want to be prepared and not leave all the important shopping to the last minute," her husband said. "A lot of our friends have said that jewellery prices will go up next year so we want to buy whatever we need right now."
Asked what she was looking for, Ravi said that she was interested in traditional Indian gold designs that complemented wedding dresses. "My sister asked me to buy the wedding jewellery from here [the UAE]. She has already picked out the dress so we have a very good idea of what type of jewellery will look nice with it." - rohma@khaleejtimes.com