Jewel of Asia show draws big crowds but few buyers

Jewel of Asia show draws big crowds but few buyers

By Dini S. Djalal

JAKARTA (JP): If diamonds are indeed a girl's best friend,
then last weekend the Jakarta Convention Center was transformed
into a sorority's dream.

At the Jewel of Asia show -- Indonesia's first international
trade show on jewelry, thousands of gleaming gems drew an
audience of three thousand jewelry buffs. Whole families gasped
and gawked at the immense display of diamonds, rubies, emeralds,
and other precious stones. Drawing the biggest crowds was the
Sefadu, which, at 620 carats, is the world's largest uncut
diamond.

Unfortunately for the 50 jewelry dealers participating in the
show, few visitors did more than look. The adjacent Hilton Hotel
may have cashed in, but the traders themselves saw few sales.

Yet the lack of turnover was not a surprise, said show
organizer Edward Khoo. "We expected some spontaneous buyers, but
no real sales," Khoo said. "The traders here are regular
participants, going to 20 exhibitions around the world yearly. So
they don't mind if they don't sell -- that's the way to do
business," he explained.

Superseding sales as a business priority is making contacts.
"Jewelry dealers who want to enter Indonesia's market come to the
exhibition looking for business partners, and joint investment
deals. Many don't know how to enter the market, because of
language problems and complicated procedures," Khoo said. So,
were many deals made? "We can't say right now," Khoo answered.
"We have to wait until after the show," he said.

Lorna MacGregor, a representative of London-based Dianoor
Jewels, felt that the results were already obvious. She said the
show fell short of her expectations. "There was not enough
promotion, which is a shame," said MacGregor. "Also, the big
names from Hong Kong and Europe didn't turn up," she said.

This was the first time that Dianoor participated in a trade
show. "We've shown in Indonesia before, but mostly in private,"
said MacGregor. "Buying through private contacts is how the top
end of the jewelry trade works," she said.

Making these contacts, however few, was precisely what made
the show worthwhile for Dianoor. "We met some wonderful people
who will come to see our showrooms in London," she said. Why
didn't these potential clients make the purchases in Jakarta?
"Because of the tax, of course," MacGregor deadpanned. Indonesia
currently imposes taxes of up to 75 percent for sales of precious
stones.

Khoo agreed that high taxes are a major obstacle to developing
the local jewelry industry, and felt the show could accelerate
the deregulation process. "It's time for the Indonesian market to
open up, and get rid of these taxes. That way we can trade
technology with foreign manufacturers," Khoo said. Khoo gave the
example of Indonesia's polishing techniques, which he said are
not very sophisticated. "We can't compete with other countries,"
he said.

The original purpose of the trade show, Khoo explained, was to
give the local traders an opportunity to learn from and co-
operate with more experienced overseas jewelers. Unfortunately,
only three Indonesian jewelers took up the offer and participated
in the show. There were two cancellations, while other jewelers
avoided the show altogether. The competitiveness of the jewelry
industry is said to be the reason behind the no-show of many
local traders.

The local traders that did participate, however, were as
guarded as their absent competitors. Both Colour Stone and Mary
Jewelry were reluctant to comment on the show.

In contrast, Michael Ermelin, President Director of Paris-
based Verney Jewelry, was an enthusiastic promoter. "It's our
first time in Indonesia, but we would like to come back here,"
said Ermelin. He admits, however, that the show has not been
smooth sailing. "Well, it's more difficult for us because we
don't do jewelry like the others. Our style is very different,"
he said.

But aren't trade shows an opportunity to survey the tastes of
other markets? "Not for us," Ermelin insisted. "We have to impose
our style on the market," he declared.

The vastness of the Indonesian market, however, should
accommodate a multitude of styles. All those interviewed agreed
that Indonesians love jewelry. "Indonesians are interested in
everything, from the smallest pieces to the biggest," said Lorna
MacGregor. Edward Khoo added that Indonesia's enormous population
and continuing economic boom were major incentives for jewelers.
"The potential of this market is much greater than in other ASEAN
countries," said Khoo. "The way people spend here is much more
aggressive than in Singapore," he said.

Khoo added that what consumers here deserve is a variety of
products, and that the show provided just that. "We should give
the people a diversity of goods, and every trader has a chance to
taste the market," said Khoo. "That way not only Indonesians are
going to get richer and richer".