The phrase ‘annus horribilis’ was brought to prominence by Queen Elizabeth II in a speech to the Guildhall on 24 November 1992, marking the 40th anniversary of her accession, in which she described the closing of the year as an annus horribilis: “1992 is not a year on which I shall look back with undiluted pleasure. In the words of one of my more sympathetic correspondents, it has turned out to be an Annus Horribilis.”
Likewise, practitioners in the Hong Kong jewellery industry could be forgiven for looking back at 2014 as an annus horribilis or, in plain English, horrible year. The agonising fact is that during 2014, local retail sales of jewellery, watches and clocks, and valuable gifts slumped 13.7 percent by value and 11.8 percent by volume. Rubbing salt into the wound, they continued to plummet year-on-year in the first two months of 2015 – by 15.9 percent and 16.7 percent, respectively.
Fine jewellery escaping less scathed albeit not completely
Indeed, last year was dispiriting not just for Hong Kong’s luxury groups but for the world’s as a whole. China’s proscription of business gift-giving, political unrest in Hong Kong, the West’s geopolitical contretemps with Russia and the negative impact of plummeting oil prices on the Russian and Middle East economies combined to wreak havoc on sales and profits. But one category of luxury has held up better than many others: fine jewellery. Over the past 12 months, global sales by the leading groups have grown in the high single digits, compared with the low single-digit growth in the luxury watch market.
The reason for this divergence is that high-end jewellery has enthralled luxury goods clients. Against all odds, therefore, the overall demand dynamics remain fairly positive. Crucial for how things unfold is, of course, China, which, together with Hong Kong, Macau and other places where Chinese consumers buy luxury items, is estimated to account for as much as 40 percent of sales worldwide. Conceivably, jewellery has escaped some of Beijing’s disapproval of business gifts because it is more discreet than wristwatches when worn, and is less identifiable as being from a famous brand.
One potential upside of fine jewellery is that it is still relatively “unbranded”, with heavyweight producers accounting for just 20 percent of overall sales. Moreover, the triumvirate — Paris-based LVMH, Switzerland’s Richemont, and Tiffany & Co which hails from the United States — account for some two-thirds of that branded market. It is an oligopoly, and that is conducive to attractive economics as well as their own stores, making distribution simpler than otherwise. This should be contrasted with the high-end luxury fashion market, around 70 percent of which is already branded and where producers rely for the bulk of their sales on multi-brand stores, which makes distribution more daunting.
But this does not in any way, shape or form imply that designers and purveyors of fine jewellery can rest on their laurels. They have to keep donning the cap of creator and innovator. From smartphones to public buildings, the modernist aesthetic is all around. Now, high-end jewellery, too, like so many areas of contemporary fashion, art and design, is looking sleeker than ever. Subtle enough to stack above or below an Apple Watch, or accentuate the new season’s whites, the latest designs from both independent and heritage jewellers are likely to appeal to purists.
Minimal and modern does it
Fine jewellery is going through a much-needed change. It is getting closer to design, art and fashion. New collections are often presented during fashion weeks or in art galleries to avoid the formal pomp and circumstance that has prevailed in jewellery for so long. And the pieces themselves are becoming ever simpler and sleeker (in the sense of having an elegant smooth shape). Fine, simple jewellery works better even with unfamiliar labels if it gives the impression that less is, paradoxically, more.
Minimal jewellery design respects a woman’s body and the way it moves. For the gem-set variety, even though the stones may be big, the idea is always about making them look like tiny accents against the skin. The rings and cuffs from Monaco-based Repossi, for instance, may look like strange artefacts or skeletons when they are off, said the brand. “But once you put them on, that is when they move in perfect balance.” The modern jeweller may be designing slighter, slimmer pieces, but rarely are they meant to be worn alone. The current trend is to stack one’s minimal-looking jewels in great clusters on the fingers, wrists and ears. These are referred to as ‘skin jewellery’, on account of their delicacy and subtlety, according to the company.
Wearing stackable jewellery, from Pandora’s sterling silver bands to the upscale coloured diamond rings from Leibish & Co, is an elegant way to make an impact. It has been observed that stacking is a very African, nomadic way of wearing jewellery. But it is also an effective marketing strategy, offering would-be buyers a plethora of prices to choose from. And it should be noted that what began as a trend among independent jewellers as a break with the past is also driving some of jewellery’s oldest brands forward, with the lower price points and stackable designs conceivably also a more calculated move to attract a younger, more fashion-focused clientele.
By Peter Ip
← Back