Two major jewelry exhibitions ended in Moscow running almost parallel to each other – Jeweler-2011 in Sokolniki and Junwex at the All-Russia Exhibition Center. Rough&Polished asked their participants to share their views of growing gold prices and purchasing power of Russian buyers after the crisis.
Natalya, Manager of Russkoye Zoloto ART:
Definitely, demand for gold jewelry has dropped. If anyone is poised to buy gold now they are after hollow and bulky light-weight pieces, because most consumers right now cannot afford a product weighing more. Nevertheless, the post-crisis situation with purchasing power has greatly improved.
Sergei, Manager of Diamond, a wholesale company:
We were in no way affected by the situation with gold prices, everything remained as it was. Fundamentally, purchasing power is lower compared with the situation two or three years ago, this is a general trend. Demand, unfortunately, is going down even for the eternal value, diamond, though I believe that diamond will never find its substitute. The reason for this unfortunate situation, as I see it, is the crisis which is continuing. So far, there is no progress in the market. Gold is rising in price and diamonds are rising in price, while purchasing power is plummeting. If the crisis ends, people will again start spending more money on jewelry, give good gifts, and everything will fall into place.
Elena, Manager of OOO Yulenia:
Yes, growing gold prices had their impact and purchasing power declined. Buyers wonder greatly, why everything became so expensive all of a sudden. Demand is there, especially for items with precious stones such as diamonds, sapphires and emeralds. But at this show I see that many buyers are put off by increased prices.
Tatiana, Manager of Zolotye Samorodki:
Gold nuggets are a specific product and we are more dependent on the panning season than on other factors. Our prices have not changed since last September. Maybe the next batch of gold nuggets will come more expensive. This exhibition cannot be taken as an indication of further trends in demand since foot traffic in Sokolniki is very thin now. We are also involved in the exhibition at the All-Russia Exhibition Center, where, I think, the situation will be better in this regard.
Sergei Tsykarev, General Manager of OOO Uralskoye Zoloto:
I think the rise in gold prices, on the contrary, made buyers more active. Although, frankly speaking, right now it is difficult to trace the trend in this respect since everything very much depends on the season and on the exhibition ground. In Sokolniki everything is all right in this sense. Although this year the exhibition featured a much smaller number of brands than ever before, and this certainly affects its attractiveness for customers and for the participants.
Yevgenia, Manager of Goldex:
Yes, we felt the changes associated with an increase in gold prices - of course, overall demand has declined. However, by contrast, people started to buy more high-end goods. Is this related to a general increase in prosperity after the crisis or the desire to invest money, I honestly do not know. May be we were specifically affected because we had changed our exhibition area - we used to take part in the jewelry show run in Sokolniki, but this year came to the Exhibition Center. Here they have more visitors and in general their show is much better organized, so I think we will continue to participate in it in the future.
Marianne, Manager of OOO Zolotaya Strela:
We have not felt any change related to gold prices. Yes, goods became slightly more expensive, but this does not embarrass our customers.
We participated in two exhibitions - in Sokolniki and now at the All-Russia Exhibition Center. I did not feel much of a difference since at both we performed well and I think we shall take part in the both events next year if nothing changes.
Andrew, the spokesman of OOO Brillialyuks:
Yes, prices in the last six months, of course, have gone upwards. But our main product is diamond jewelry, wedding bands and engagement rings, and people get married and fall in love in spite of economic difficulties. Diamond is a symbol, a tradition which is not so easy to give up. So we are not influenced by increased prices for raw materials, at least in a negative way.
As for the show, I, frankly speaking, like it more here, at the All-Russia Exhibition Center than in Sokolniki. More participants, more visitors, the exhibition space is better organized – everything meets the eye, comfortable and beautiful, it’s a pleasure to work here.
Elena, Manager of Golden Leopard:
Well, we "sagged" quite a bit during the crisis, and only now we are beginning to get out of it little by little. Of course, rising gold prices do not make us happy - buyers get shy, while we have no money to pay back credits with. I do not know, honestly, what will happen next, not only with us, but with the entire industry.
Certainly, I like the exhibition at the All-Russia Exhibition Center better than that in Sokolniki. Still there are aspects to be improved, so the organizers have a lot of hard work to do.
Anna Tishinski, Rough&Polished, Moscow
