Muted Las Vegas Fairs Come to a Close

RAPAPORT... The Las Vegas jewelry week ended on Monday with tradingreflecting a steady US market, despite the slower foot traffic at the variousshows. "Traffic was a bit down, but it was an okay show," saidone Israeli polished supplier exhibiting at the JCK fair. "Dealers were lookingfor goods, and retailers were maintaining relationships." Some noted that activity was better for jewelry suppliersthan in the diamond pavilion at JCK as retail buyers sought out designs andcollections for the fall and end-of-year holiday seasons. The average retailer comes to Las Vegas to look for someloose diamonds, said John Carter, president and CEO of retailer Jack LewisJewelers in Bloomington, Illinois. But the main purpose, he continued, is toestablish relationships with existing suppliers and other retailers, understandthe buzz in the industry and see new designs. "It's a great way to find new suppliers," he said. As such, most orders from retailers take effect after theshow, explained one jewelry wholesaler at JCK Luxury, who added that he'd metfew new buyers while exhibiting there. "The follow-up is vital, but we alsohave to reach out to those who weren't here. There was less traffic, and I feelpeople are rethinking the [trade-show] business model due to the high cost." Similarly, in the loose-diamond section, suppliersquestioned whether the shows were as vital as they used to be, with lesstraffic and fewer exhibitors attending this year. It's not clear that the industry needs the shows, said aNew York-based dealer, as dealers are engaged with clients throughout the yearand buyers have access to goods online.Over 2,300 exhibitors participated in the JCK and Luxuryshows, according to organizers, and more than 20,000 visitors were registeredto attend. Many pointed to strong trading in the first quarter and said businessesdidn't need to buy inventory at the show. "The higher-end client is doing very well, while themiddle and lower segments are naturally more cautious," reported a New Yorkdealer. "The economy is doing well, and the market is in a better place, sowe're not too concerned that the show was a bit slower this year." He added that he'd "rather have a good year and a badshow than the other way round. And we're having a good year."The following are some trends observed at the JCK show: Sales are up in 2018, but profitability is a big concern for the trade.  De Beers' entry into lab-grown diamonds dominated discussions at the show, with the natural-diamond industry largely supporting the move to disrupt the synthetics market. Blockchain initiatives are gaining momentum, with some concerns about market segmentation.  Polished prices are stable, with the RapNet Diamond index (RAPI) flat during the week of the show (May 29 to June 5).  There is a shortage of goods in select categories, supporting prices.  There is steady demand for round, 0.50- to 1.25-carat, G to I, SI diamonds.  VVS is weak.  Fancy shapes are stable, with emeralds and ovals the strongest categories. Next year, the JCK show will be returning to its formervenue at the Venetian and Sands Expo Center.