The sixth International Diamond Week in Israel took part in the rough trading hall of the Israel Diamond Exchange (IDE) from February 14 to 18, with hundreds of Israeli diamond dealers and buyers from overseas taking part. The latest edition of the buyers' week, which is held twice a year, was noticeably quieter than previous shows.
"It's no surprise," said one Israeli diamantaire. "It's more or less as we expected. We did not think there were going to be big amounts of trading. It really reflects the state of the business globally. Everyone is very cautious and there is no stocking of goods. We know people will only buy what they need for immediate needs."
Acknowledging the range of problems facing the industry, IDE President Yoram Dvash opened the event by calling on members of the trade from across the globe to come up with innovative thinking. “We are all in the same boat. I call on everyone to think outside the box. This is what we do in the Israel Diamond Exchange and this is what we must all do in our private diamond businesses."
Israel Diamond Manufacturers Association President Kobi Korn said: “The IDE has made much effort and great investment to continue the tradition of the International Diamond Week in Israel. 2015 was not a good year for the diamond business. 2016 has started with signs of improvement."
Does that mean the show will continue? That remains to be seen, said one well-connected diamond industry figure. "The show has been held for the past several years and was already well in the planning stage when Yoram was elected so there was no alternative but to continue with it," he said. "It's possible that a different approach will be taken in the future."
The Diamond Week was officially opened by guest of honor CIBJO President Gaetano Cavalieri. He later signed a Statement of Purpose with Dvash and Israel Diamond Institute Chairman Shmuel Schnitzer for the establishment of the Israel Diamond Jewelry initiative. "I was very pleased to be able to offer the assistance of CIBJO. We will do all we can to help with this initiative,” said Cavalieri. "I see this move as a natural step for the Israeli diamond industry. Israel has demonstrated for the past decades a significant level of quality – not just in diamonds, but also in the manufacture of diamond jewelry.”
Panel Debates Diamond Marketing
The first day also featured a panel discussion on how to market diamonds. The participants were British jewelry designer Stephen Webster, Diamond Producers Association Chief Executive Officer Jean-Marc Lieberherr, Chairman of the World Diamond Mark Foundation Alex Popov, and Executive Director of the World Diamond Council Patricia Syvrud. IDE President Dvash said the panel debate was being held because the industry had to stop, think and discuss the situation in the diamond market, and to try and forecast trends and changes for the future.
Syvrud spoke about the role of the World Diamond Council and the benefit it brings to the industry. “We will work together to address what this industry needs to do to move itself forward. We want to be a proactive voice sharing the good that the diamond industry does."
Meanwhile, Lieberherr provided a detailed background of the DPA, explaining how the association was established and what it hopes to offer the diamond and jewelry trade. He said the DPA's aim was to "make sure that we keep the diamond dream alive and to keep it as vivid as possible. De Beers used to hold an important role in this aspect and one of the objectives of the DPA is to fill that gap,” said Lieberherr.
Lieberherr told the audience about research that the DPA has carried out in the United States on the millennials and marketing diamonds. “Many of these young people have never been exposed to diamond marketing. One of the things we observed from this research is that they reject the notion of convention. We need to connect to the younger generation on the emotional level. We need to translate to them the special qualities of the diamond. All the successful diamond brands have established the emotional connection," concluded Lieberherr.
Stephen Webster said creativity has been at the heart of his business success. "I've been a jeweler for 40 years, but it is only in the past 20 years that my business has blossomed. My clientele has largely been women buying jewelry for themselves."
Meanwhile, Popov said the WDM was a "catalyst". The WDM is seeking "to get people to think a little bit differently. We are trying to get people to do new things and things they haven't done before."
As with previous editions of the Diamond Week, the show featured a Diamond Technology Zone which was opened by Israeli Nobel Prize winner Professor Dan Shechtman. The zone featured a range of Israeli technology firms.
IDE Signs Agreement with Jewellery Manufacturers Association of Hong Kong
Dvash and Adam Lau, the President of the Jewellery Manufacturers Association of Hong Kong (HKJMA), signed a memorandum of understanding aimed at strengthening cooperation between the IDE and HKJMA.
"Acknowledging the importance for both sides of the diamond and jewelry industries, and the desire to cooperate on the basis of reciprocity and an understanding of the needs of their members, we share the desire to strengthen the relations between the parties and transactions between members: we have agreed to cooperate in mutual activities in China and Southeast Asia, to hold periodic consultations in order to raise issues of common interest to both parties, in order to strengthen the commercial relationship between the parties," the agreement said.
GIA President and CEO Opens New Israel Laboratory
Among the major events of the week was the official opening by GIA President and CEO, Susan Jacques, of the organization's new premises in Ramat Gan. “The GIA has a very simple mission – to ensure public trust in gems and jewelry," she told the audience at the official opening ceremony. "We look forward to bringing more educational services to the Israeli diamond industry in the coming period." And commenting on the situation in the global diamond market, she commented: "I believe that the industry has bottomed out and we will once again soar to great heights."
IDE Vice President Yehezkel (Hezi) Blum told Jacques and GIA Executive Vice President and Chief Research and Laboratory Officer Tom Moses who also attended: “We were very, very happy when the GIA opened a branch in Israel in 2011. Now, four years later, the GIA has decided to set up a large state of the art laboratory here. It’s a great advantage for us. I look forward to cooperation with you.”
Meanwhile, Moses, talking about the new laboratory, said: “We are very proud of the commitment we have made to the Israeli diamond trade. GIA is delighted to be here, and I’m really excited to see the growth at the GIA here. When I started at the GIA, there were less than 100 employees worldwide. Now the GIA in Israel alone has more than 100 employees. Since we have expanded we will be introducing more services in order to fulfill all the needs of the Israeli diamond industry. We look forward to providing these services to you in the future,” he added.
Concluding the event and the Diamond Week, Blum awarded Jacques with The IDE's League of Honour certificate for her "dedication to transparency and professionalism in the field of gemology, and her contribution to the international diamond industry".
Conclusion
Does the International Diamond Week still have value? The answer seems to be, for the present, strongly affirmative. Even if large amounts of trading and transactions were not carried out, the event has a highly positive public relations effect. It brings diamantaires, not just from abroad, together with their Israeli counterparts. There are also many cases where Israelis from the IDE and often from the same building carry out trade with each other thanks to the event.
At a time of difficult challenges due to economic slowdown and uncertainty, the industry needs the opportunity to come together and raise its morale. As one exhibitor commented: "For the most part, unfortunately, we work from our offices nowadays. It can be rather depressing when you are trying to make sales in your office and not getting far. So, to get out of the office and meet people and exchange opinions is a great morale-booster."
By our Israel correspondent Abraham Dayan
