On October 23-26, 2008, Moscow’s Crocus Expo, an international exhibition center, hosted the 3d International Exhibition of Jewelry and Arts & Crafts “Golden Globe.” Rough&Polished asked the participants of this event to share their views on how the world financial crisis was projected onto the activities of Russian and foreign jewelry manufacturers and merchants.
Alexander Yakushev, Choron
The crisis observed in the global economy has not yet bowled to Russia. But, as we suspect, some time it will happen. It is clear that the purchasing capacity of people here will most likely go down. However, so far we have our both feet firmly on the floor, so everything’s OK with us.
Aibek Shamotaliev, Zen Diamonds
We are an international company with its basic production facilities located in Turkey, Thailand and Italy. The crisis affected our affiliates in Europe and the United States. Our business in the Middle East is also not very smooth – just half a year ago our sales were stronger. In Russia, if we judge by the results of our branches here, our business has not been exposed to the financial crisis in any way. There is nothing clear so far in this respect in this counry. We’ll be able to see it in two or three months. Sales in Europe and the Middle East decline due to the crisis. But on the other hand, the jewelers’ season is as a rule stretched from December to the New Year and Christmas. Everything can change during this time.
Alexey Sergeyev, Argentum-Unicum
So far the crisis has had no consequences for our company. Some time is needed to induce certain trends on the market, that is to change metal prices this way or another, or to make gems much more expensive, or to have people left without money, or on the contrary to make them invest into something. We have to trace it. So far there were no cataclysms. We also do not see any increased attention to some jewelry items on the part of buyers or, the other way around, any decline in this attention. Everything goes as usual.
Ekaterina Lisovskaya, OOO Beloye Zoloto
In a season like this, sales should be much stronger. But they go the opposite way. As far as I know, the majority of jewelry companies are in such a situation.
Victor Tulikov, Yuvelirnaya Masterskaya Tulikova
We produce exclusive designer-made jewelry pieces and the people who used to buy them are still buying them now, so the financial crisis hasn’t had any influence on our work. Maybe because we are tied to the tourist industry, we see that the purchasing capacity of tourists coming to our place decreased. We make silver jewelry and enamel pendants. Maybe because of this the crisis is not so much dangerous to us as to gold jewelry manufacturers or diamond jewelry manufacturers, which depend on the crediting system. Not a single person of sound judgment can currently afford investing into the production of this kind of jewelry. All people have nowadays problems with borrowed funds and this is why manufacturers operating in the gold and diamond segment feel as if they ran into an “ambush” so to say.
Begler Emirov, DEKUN Jewelry House
We don’t care a dime about this crisis. The financial crisis has been generated by certain forces aiming to drop prices, buy everything in and monopolize. This period will pass, prices will go up again and everything will turn full circle, including the jewelry business. So far we haven’t been affected in any way. On the contrary, people started to buy even more.
Igor Makarov, Mokume Jewelry House
Yes, the market is being rocked and very badly, but we haven’t noticed any catastrophic price fluctuations namely for gold, silver, platinum, or diamonds. Stock markets and financial markets are shaking, but so far this had no reflection on the jewelry market. We had fixed rouble prices and they remain, so the crisis has not affected us at all.
Rough&Polished
