THE WORLD OF JEWELRY MART 2019 / by ALTIN DÜNYASI by ALTIN DÜNYASI YAYIN GRUBU

THE WORLD OF JEWELRY MARCH 2019

JEWELRY THE WORLD OF

Altın Dünyası

Tiffany & Co. ''Believe in Dreams''

MUSTAFA KAMAR

''BE OUR GUEST DURING THE ISTANBUL JEWELRY SHOW''

An Istanbul ‘Timekeeper’ Who Believes in Taking It Slow

Tiffany & Co

Sevan Bıçakçı;

ALL AROUND THE WORLD

CONTENTS 76

AWDC and Bain publish 2018 Global Diamond Industry Report

THE TURKISH JEWELLERY INDUSTRY TO FOLLOW NEW STRATEGY 24

Eight-carat blue diamond sells for

$18 million

118

AVOIDING DECEPTION IN THE UNITED STATES MARKET

The Advantages of Turkish Jewelry Industry

ATASAY LAUNCHES NEW STORES IN U.A.E.

An Istanbul ‘Timekeeper’ 25

Marketing to millennials Millennials make up the biggest buying group at present. They have high expectations and less expendable income than previous generations. This leads them to process purchases more subjectively and prioritise differently the products and services they use. The diamond industry is playing catch-up to break down these barriers and convey the messages that will resonate with this new buyer mentality.

Be our guest in Istanbul Jewelry Show

Remzi ÇELEN Editor in Chief

......

As a part of the organization supported by Turkish Republic Ministry of Economy, foreign buyers are accommodated in 5 star hotels free of charge for the duration of Istanbul Jewellery Show. Turkish Airlines provides discounted tickets as well. The next organization of Jewellery Exporters’ Association will take place on 10- 13 October 2019.

World Jewellery Industry Gets Together at IJS for the 48th Time Organised by UBM Rotaforte Uluslararası Fuarcılık A.Ş., the Turkish branch office of UBM Asia which is the biggest exhibition organiser on the Asian continent, and recognised as one of the top five jewellery exhibitions in the world, the Istanbul Jewelry Show will be bringing together the professionals of the jewellery industry for the 48th time. The exhibition will be held at CNR Expo, the Istanbul Fair Centre, between March 21 - 24, 2018. As part of the International Buyer Delegation Programme, 1500 buyers from the target countries of the jewellery industry will be hosted at the exhibition. Master and young jewellery designers will be showcasing their latest designs at the show’s Designer Market.

Discover the Potential Turkey jewelry sector has a strategic importance for Turkey. Jewelery industry is one of the rare sectors where Turkey is competitive in the world. Turkey stands among the most important manufacturers in the world in gold jewelry. Our exporters export jewelery to all corners of the world. In this new magazine you will find news about the global jewelery industry. However, also important to developments regarding Turkey's exporters can browse the following pages. WINTER | 2019 Remzi Çelen Editor in Chief

PUBLISHING GROUP

İmam Altınbaş

Altındünyası Publishing Group Alemdar Mah. Nuruosmaniye Caddesi N: 12 Kat:3 Fatih – İstanbul info@yayindunyasi.com +90 212 518 84 01

Aslı Çelebioğlu

Özcan Halaç

Editor

Mustafa Kamar

Dilara Ünal News Editor

Süleyman Önkoyun Art + Production

Nur Kuşkondurmaz General Coordinator

Esin Çalışkan Sales Representative

Ayşegül Elgin Sales Representative

WITH THANKS TO

Mustafa Atayık Mehmet Can Özdemir İlhami Yazıcı Remzi Celen

ÖZLEM MATBAACILIK Maltepe Mahallesi, Litros Yolu Sk. 2. Matbaacılar Sitesi D:2BB4, 34010 Zeytinburnu/İstanbul Telefon: (0212) 612 06 62 www.ozlemmatbaa.com.tr

Turkish Jewelry Industry The structural reforms made in Turkish jewellery sector are being followed closely by world jewellery industry. İmam Altınbaş, Chairman of Jewelry Industry of The Union of Chambers and Commodity Exchanges of Turkey said that the advantages they have now have removed many obstacles for them.

he structural reforms made in Turkey, one of the most significant golden jewellery producing and exporting countries in the world, helped focus the attention of the world’s jewellery industry on this country. The tax reforms prompted Turkey to utilize the country’s many advantages such as geographical location and production capacity. İmam Altınbaş, Chairman of Jewelry Industry of The Union of Chambers and Commodity

Exchanges of Turkey said that Turkey was going to be one of the most important precious stones centers in the world. Highlights from İmam Altınbaş's interview follow;

No more tax “Previously there was a 20 percent special consumption tax on the import of precious stones. Because of the extra cost on the precious stones that were imported in order to be exported again to be used in jewellery production, we were

struggling to keep up with the competition against the rest of the world. This tax is no more. Member companies of the Precious Stones Exchange are now able to import without having to pay any tax.”

Resource Utilization Support Fund has been lifted “In Turkey, under the name of Resource Utilization Support Fund (RUSF), a 6 percent tax was levied on import transactions of precious stones

having fixed-term payments. After the 20 percent special consumption tax now the 6 percent RUSF has also been lifted.”

Precious stones exchange was founded “Last year the precious stones exchange was founded and started to operate. For companies to be eligible for the new tax advantages, they now have to be members of the exchange. Member companies of the exchange no

“The increase in interest from foreign companies in Turkey is a strong indication of Turkey’s new position as one of the most significant precious stones centers in the world.” longer have to pay 20 percent special consumption tax, 6 percent RUSF, or 18 percent VAT. Member companies of the Exchange don’t have to pay any tax on transactions among each other. This being a significant advantage, many companies joined the Exchange in a very short period of time.”

Increase in foreign interest in the Exchange “The advantage of no tax also attracted the attentions of precious stones companies abroad. Companies who wanted to take advantage of these tax breaks and improve their trade in Turkey started to establish companies and build partnerships in

Turkey in order to be eligible to join the Precious Stones Exchange of Istanbul. The increase in interest from foreign companies in Turkey is a strong indication of Turkey’s new position as one of the most significant precious stones centers in the world.” The surety system of Dubai does not exist in Turkey, foreigners can establish a company on the same day. “According to Turkish commercial laws, foreigners are allowed to establish a company and start operation in one day. It’s extremely easy to establish a company in Turkey. The surety system of Dubai does not exist in

Turkey. Foreigners who bring their own capital can establish a company and start operating with equal rights to Turkish citizens. Turkey is a candidate for European Union membership and it is government policy to pave the way for facilitating foreign investments in Turkey and establish trust.”

Turkey is in the center of the world “Turkey has huge advantages in terms of geographical location. It is right in the center of the European Middle Eastern, and North African markets. Many countries are within the reach of a few hours’ flight. It is possible to fly to every corner of the world with direct flights from Turkish Airlines, one of the best airlines in the world.”

country with the largest stock

Visa is not a problem for Turkey

precious stones the importance

“Other precious stones centers of the world, such as Belgium and Israel have visa problems. Not Turkey, though. Turkish citizens can travel to 106 countries without a visa. Furthermore, citizens of 117 countries are either exempt of a visa or can get an e-visa online.”

Guests arriving in our country

World’s largest diamond setting stock “Turkey specializes in almost all product categories. A jeweller visiting Turkey can easily find every kind of product. Turkey is the

of diamond setting in the world.”

Choose your stone, choose your setting and produce your jewellery “With the tax advantages on of setting stocks increased. can find a large variety of settings stock consisting of every size and type of precious stones. They can promptly have it produced at the highest level of craftsmanship and import tax free.”

Turkey has immense production capacity “Turkey has one of the

highest capacities in the world for processing gold. In this country with a 5000year history of jewellery, there are 5000 producer companies. This industry provides more than 400,000 people with employment. The industry has many large-scale factories. There are three large, LBMA certified refineries operating in Turkey.

Kuyumcukent (Jewelerville): 1000 producers under a single roof

“The world’s largest jewellery production complex is the Kuyumcukent in Turkey. More than 1000 producers operate under a single roof. There is an opportunity to buy all kinds of products directly from the producer here. As such, Kuyumcukent is like an all-year-round open fair.”

35,000 retail stores in the domestic market “With a population bordering on 80 million people, Turkey is an important market. In an industry with 35,000 retail stores, the volume of the domestic market is quite high.

Istanbul Jewelry Show is one of the most important fairs in the world “Istanbul Jewelry Show, held

in March and October in parallel to the development of our industry, has turned into one of the most significant fairs in the world. Today, thousands of visitors from all corners of the world visit our fair. A further hundreds of foreign companies participate in the fair.”

The world’s largest customer hospitality organization “The Jewellery Exporters’ Association, broke the world record last year by accommodating more than 1000 jewellery industry professionals in our country and paying for their hotel expenses. The Association plans to improve the record in March this year. JTR invites the jewellery industry professionals of the world to discover the advantages of our country.”

“The increase in interest from foreign companies in Turkey is a strong indication of Turkey’s new position as one of the most significant precious stones centers in the world.”

ARPAŞ

FROM ISTANBUL TO THE WORLD Turkey, one of the world’s most important gold jewellery manufacturers, is home to a string of large and innovative firms that produce a wide range of finished gold jewellery industry. One of those is Arpaş. Founded in 1982, the company current exports its products to almost 80 countries. The company became a a member of the Responsible Jewelery Council in 2014. The World Diamond Magazine spoke briefly to its CEO, Fatih Kemahlı, about the latest developments at the firm. Can you give us some background on the company? Founded in Istanbul in 1982, Arpaş is counted among the pioneers of Turkey's modern jewellery manufacturing and also was among the first firms to build an export market for its gold jewellery. The creation

of a viable export market went hand in hand with the industrialisation of Turkey's jewellery manufacturing and consequently with the introduction of avanced production technologies of gold processing, such as rolling, and of gold jewellery maufacturing. By

employing and involving mechnical engineers in its jewellery manufacturing, the company helped bring about a revolution, one that changed Turkey from a jewellery producing nation that was reliant on a labour-intensive, artisinal work force, into a first fully industrialised jewellery

producing nation to reckon with. Nowaways, Arpaş is a leading manufacturre of firstrow, finished jewellery sold in prominent jewellery stores in 79 countries. Of course, the company also has an important foothold in Turkey itself. We've come long way since 1982!

Arpaş has been very open about its efficient use of technology, eco-friendly production and different production techniques. What can you share about them? I dare say that Arpaş is among the few brands in Turkey that has integrated responsible sourcing and responsible production into its businness model and practices. Our sourcing - of the precious metals we use, in particular gold; the gemstones we set, all are closely monitored with regard to their provenance, as well as their impact on the environment and the people who live and work in it. All these processes take place under our factory's single roof, a new factory building of approximately 28.000 square meters. Here, working with the latest production technology and tools, our engineers and craftspeople all help build the products that have made Arpaş the succesful Turkish jewellery brand it is today.

Can you say more about environmental awareness and sustainability? At Arpaş, we only source pure gold and pure silver from trusted, certified sourced. In practice, this means that we want to know where and how the precious metals were mined an where and how it is refined. Of course, we are committed to upholding the environmental standards for our suppliers as well is our own production processes. Of course we do not use heavy metals such as nickel and cadmium that pose a serious health risk. With our more than 640 models created with unique designs and universal trends, we guarantee our customers that of Arpaş' jewellery is void of any allergenic components.

Since when are you a member of RJC? Since 2014, we are one of the few Turkish jewellery manufacturers to be a member of the Responsıble Jewellery Councıl. RJC Members commit to and are independently audited against the RJC Code of Practices – an international standard on responsible business practices for diamonds, gold and platinum group metals. The Code of Practices addresses human rights, labour rights, environmental impact, mining practices, product disclosure and many more important topics in the jewellery supply chain. RJC also works with multi-stakeholder initiatives on responsible sourcing and supply chain due diligence. The RJC’s Chain-of-Custody Certification for precious metals supports these initiatives.

In the spirit of and guided by the RJC, Arpaş recycles all the waste generated during the production process. We are constantly working on new ways to generate the minimum amount of waste by consuming the least amount of energy and to create maximum value. We believe that this is what should be done for future generations, our customers and most importantly for ourselves.

We do not ever use unknown sourced gold and silver that are used already and purificated subsequently.

he world’s most recognized diamond grading institution, GIA (Gemological Institute of America) is launching a pilot program together with leading jewerly retailer, Chow Tai Fook which will use blockchain technology to deliver secure, digital diamond grading reports to consumers for the first time. Clients of Chow Tai Fook’s T-Mark diamond brand will receive a permanent and immutable blockchain record of their diamond’s GIA grading information. The new digital reports will be secured by blockchain technology, and will first be piloted in selected Chow Tai Fook stores in Hong Kong before expanding

to other locations. The initiative was developed with leading blockchain solutions provider Everledger and is secured by the IBM Blockchain Platform. GIA says it is among the first consumer-facing initiatives to use the blockchain to put diamond grading information directly into the hands of the consumer, which is an important milestone as blockchain moves from B2B, to B2C. “Securely linking T MARK customers to their diamond’s grading information through the use of blockchain is an important step to enhance consumer trust,” said Tom Moses, GIA executive vice president and chief laboratory and research

officer. “GIA has been delighted to work closely with Chow Tai Fook to bring this advancement to the entire gem and jewelry community.” Kent Wong, Chow Tai Fook managing director, said “We are very proud of our cooperation with GIA which gives our customers additional assurance and transparency, and the opportunity to have both diamond grading and diamond traceability information at their fingertips. This is an important industry breakthrough and adds a new chapter to the customer experience.” Leanne Kemp, CEO of Everledger - the emerging tech company that

developed this initiative said, “We are delighted to be working with two industry giants to provide assurance for customers through our pioneering work with blockchain technology for the diamond industry. This is a great result of more than two years of work and we look forward to continue delivering business and customer benefits for the entire industry.”

Marketing to Millennials: Millennials buy diamonds differently

urely, the above statements are something you have heard and will continue to hear. But what do they mean in the diamond industry? Millennials make up the biggest buying group at present. They have high expectations and less expendable

income than previous generations. This leads them to process purchases more subjectively and prioritise differently the products and services they use. The diamond industry is playing catch-up to break down these barriers and convey the messages that will resonate with this new buyer mentality.

Millennials not mysterious The term â&#x20AC;&#x153;Millennialâ&#x20AC;? has become less relevant as an age definition since the preceding generations are adopting the skills needed to function and flourish in this age of technology and information. Millennials by themselves are not a mysterious and select group - they are simply more comfortable with new

technologies and with that have higher expectations of content offered and the speed of access to this information. On the other hand, this does not change their wants and needs, only their views and analytical approach. So why is the diamond industry struggling to identify with modern day consumers? With less expendable income than previous generations, it takes a strong message and compelling narrative to engage Millennials towards the purchase of a luxury item and, according to research conducted by Goldman Sachs, with half as many 18-31 year olds married and living in their own home in 2012 compared to 1968, engagement rings and diamond jewellery are clearly not high on that list. Luxury products will always have their allure, provided they can still resonate with their customers. Is the diamond industry - as a whole - doing enough to ensure our product is attractive to Millennials and future generations? Failing the challenge The fact is that the diamond industry is not meeting the challenge of providing Millennials with the services, experiences and conversations they want. In its current state, the dialogues between consumer and retailer are one directional, a “take our word for it” approach. The allure and mystery created around the secret world of diamonds has transcended into one of distrust and hesitation. In comparison to other luxury products, ours has a long way to go.

The industry is trying to catch up in an attempt to provide information and to adopt methods that will allow them to restore Millennials’ trust in buying diamonds. It is not something that can be done in half-measures, nor can it be achieved without a review of the entire diamond pipeline and how every stage thinks about the end user. From mining to final purchase, the focus for everyone must be on what they can do for the consumer and really, this comes down to information. It’s….the story Information is the foundation upon which a story can be built, depending on the storyteller. (I recommend you read some of the articles on the topic and some of diamond stories published in this issue of the World Diamond Magazine!) The rough buyer must think about what they can do to build a catalogue of information behind each diamond from day one and how this can be transferred on to the next step of its journey and so on. Eventually the diamond will reach the final step of its journey before sale and will have this story that brings the end user into our world for that moment. Rather than having been offered a peek behind the curtain, they need to get away with the feeling that they have been given an exclusive and exciting backstage tour! Online is forever Millennials are the first generation to make online shopping an indelible part of their everyday life, so it’s only right that

they are the chief influencers of online retail. However, as online shopping becomes second nature to everyone, the Millennials have basically created the blueprint for modern online marketing. The platforms and trends that influence consumers will continue to grow and evolve, as is the nature of the world we live in, as will the way in which new Millennials are the generations purchase first generation luxury goods and to make online services. Focusing shopping an on one generation indelible part of of consumers their everyday life, based on a catchy so it’s only right marketing term that they are the is not the solution chief influencers of for the diamond online retail. industry. Even though every retailer has their own idiosyncrasies and methods to attract his own customers, it’s the story behind diamonds and diamond jewellery that is paramount, not only for Millennials but for all consumers coming through their front doors! Consumers buying diamonds - regardless of age, profession or expenditure - want to know the story behind their diamond. At this present moment, they are only privy to the final chapter and even then, only the final sentence of that chapter. It is vital that, from start to finish, reliable, transparent and modern practices are put in place to begin writing that story from the very beginning.

Midas is now a certified member of Responsible Jewellery Council Midas has taken its quality one step further as it has become a member of Responsible Jewellery Council, a non-profit organization that started its activities in USA. Itâ&#x20AC;&#x2122;s the organizationâ&#x20AC;&#x2122;s aim is to maintain consumer

confidence by advancing responsible business practices throughout diamond and gold jewellery supply chain. It is seeking to achieve its objective by developing business ethics and environmental and social standards those apply

to members at each step in the supply chain â&#x20AC;&#x201C; e.g. mining companies, refiners, traders, processors/cutters, manufacturers and retailers. RJC has over 500 members from 53 countries around the world. Among the members of RJC are such

large-scale companies from all over the world such as De Beers, Rio Tinto, Pandora, Gucci, Hublot, Rosyblue, Lange&Sohne, Asian Star, Andre Messika, IWC and membership process requires very careful audit and assessment procedures.

ALROSA, the world leader in diamond mining, and GfK research company conducted an extensive research of diamond consumers in the US and China. Among other things, it demonstrates that consumers of both countries are interested in buying diamonds, they are planning to buy them in the future, and that they purchase for themselves much more often than as a gift.

questioned for the research.

Following traditions First of all, the results of the research confirm that consumers continue to show great interest in diamond jewelry. From the total number of interviewed people, 86% of Chinese respondents and 59% of respondents in the USA plan to buy at least one piece of diamond jewelry next year.

T market.

oday, the USA is the worldâ&#x20AC;&#x2122;s largest consumer market of diamond jewelry, and China is the most rapidly growing

The research was conducted in the

autumn 2017. More than 4 thousand people from the USA and China â&#x20AC;&#x201C; men and women aged 25 to 55 years, with average or above average income who bought or received diamond jewelry as a gift within the last 12 months were

According to the research, diamond jewelry buyers are not only loyal consumers thinking a diamond is a good acquisition for themselves, but they are also ready to share this opinion with their friends. According to the research, about 34% of respondents in China and 37% of those interviewed in the USA say that if their friends sought their advice on a present to a loved one, they would recommend diamond jewelry as a gift.

Shopping for yourself and tradition of giving gifts On the average, 44% of Chinese consumers and 38% of US consumers buy one piece of diamond jewelry a year. 34% of respondents from China and 30% of respondents from the USA make two purchases a year. Every seventh consumer in China and almost every fifth consumer in the USA buy three pieces of jewelry a year. Almost 73% of respondents in China and 71% in the USA replied that over the last year they bought diamond jewelry for themselves. Less than in 30% of the cases in both markets, diamond jewelry was purchased as a gift.

often than in China, diamonds are given to teenagers – the share of gifts to children aged 11 to 17 years is 4%, while it was only 1% in China.

ost often, it was a gift for a husband or wife – in about 60% of the cases in all the markets under study. In the USA, jewelry gifts were given to parents (14%) and friends (12%) more often than in China. Most

Diamonds are given to women more often than to men – accounting for approximately 94% of the cases in China and 87% in the USA. often, gifts with diamonds are given to people aged 26 to 45 years – they account for 71% of gifts in China and 57% in the USA. In China, less than in the USA, gifts are made to people over 46 years old – they account for just 16% of gifts (in the USA – 25%). In the USA, more

GfK (“Growth from Knowledge”) – international group specialized in research and analytics of consumer behavior and public opinion. GfK connects data and science. Innovative research solutions provide answers for key business questions around consumers, markets, brands and media.

Tiffany & Co. Debuts 2019 “Believe In Dreams” Campaign With Modern Remake Of The Classic Song “Moon River,” Featuring A$Ap Ferg And Elle Fanning Introducing the Tiffany Paper Flowers™ Jewelry Collection

iffany & Co. unveils its “Believe in Dreams” campaign, and debut of the new Tiffany Paper Flowers™ jewelry collection, infused with an unexpected combination of incredible talent. The campaign film opens with American actress Elle Fanning appearing in black and white as she peers into the Fifth

Avenue flagship windows, a nod to the opening scene from the 1961 classic film, Breakfast at Tiffany’s. Her reality then transforms into a dreamlike rush of music and color flooding the streets of New York to the soundtrack of a reimagined “Moon River,” featuring Fanning’s ethereal vocals with original lyrics by New York City native and hip hop artist A$AP Ferg.

Eight-carat blue diamond sells for $18 million

A fancy vivid blue diamond weighing 8.08 carats, set in a Bulgari-made ring, was sold for more than $18 million this Fall at Christieâ&#x20AC;&#x2122;s Magnificent Jewels auction in New York. The price per carat reached for this cushion-cut fancy vivid blue diamond was $2.27 million. While this piece headlined Christie's Magnificent Jewels auction, a rare, 15.56-carat heart-shaped pink diamond set in a pendant sold for $9,537,500. Another item that drew attention were the Foxfire Diamonds, which were mined in the Diavik mine in Canada. Set in a pair of earrings, the stones, weighing respectively 37.87 carats and 36.80 carats, sold for $1,572,500. And an oval-shaped, internally flawless, fancy yellow diamond was hammered of at $1,308,500.

As a part of the organization supported by Turkish Republic Ministry of Economy, foreign buyers are accommodated in 5 star hotels free of charge for the duration of Istanbul Jewellery Show. Turkish Airlines provides discounted tickets as well. The next organization of Jewellery Exportersâ&#x20AC;&#x2122; Association will take place on 10 - 13 October 2019. Make your reservation. 48

ewellery Exporters’ Association broke a new record in Istanbul Jewellery Show. Over 1500 foreign buyers from all over the world were accomodated in 5 star hotels in Istanbul. Also, the buyers benefited from discounted ticket advantage of Turkish Airlines. Guests who visited Istanbul Jewellery Show for 4 days also had the opportunity to develop important business relations. Jewellery Exporters’ Association also organized works aimed

towards the demands of foreign buyers. Foreign guests came together with Turkish exporters for Billeteral Meetings in Crown Plaza Hotel and Convention Centre. Having the chance to review the manufacturers and their products, buyers had a chance to organize their fair schedules in a much more efficient manner. Jewellery Exporters’ Association’s next organization will be arranged in March over the course of Istanbul Jewellery Show. You can make reservations now.

Jewellery Exporters’ Association’s next organization will be arranged in March over the course of Istanbul Jewellery Show. You can make reservations now. 49

Buyers’ committee is very important for IJS

Mustafa Kamar

The VIP Buyer’s Committees of Turkish Jewellery Exporters Association (JTR) put a lot of effort into making for Istanbul Jewelry Show. JTR President Mustafa Kamar said that the Committee will welcome over 1500 international VIP buyers.

ne of Turkey’s largest VIP Buyers Committees, JTR, with the help of the Turkish Ministry of Economy, will welcome 1500 international VIP guests to İstanbul in March. “We had very low expectations for the show because of the political turmoil that had occurred earlier in the year,” JTR President Mustafa Kamar said.

“Therefore, we initially only reserved hotel rooms for VIP buyers. However, following our increased marketing strategies and efforts, we soon had to raise the number of reservations to 750, and then to 750. By the time of the show, we already had more than 1250 confirmed VIPs. In the end, we hosted more than 1500 VIP buyers during the show, obviously far beyond

our expectations!” Kamar added that as the international prestige of the show grows, buyers from all around the world simply did not want to miss the show. The arrival of so many invited buyers indicates these buyers’ trust in our show and our country.” "The Committee is already working hard to guarantee

that in March VIP guests will arrive in even higher numbers. “We have a lot experience and work very professionally. Which is exactly why every year, as our general visitor count goes up, the VIP visitor count follows suit!”

An Istanbul ‘Timekeeper’ Who Believes in Taking It Slow

nown for his lavish carved-gemstone rings, the jeweler Sevan Bicakci has added watchmaking to his portfolio. But the result probably isn’t what you’d expect: Mr. Bicakci doesn’t really worry about the ease of telling time. More important, he says, is the story that each watch tells and his painstaking journey to create it. “With many of my watches, it’s actually very challenging to read the time because there’s so much going on: within the dial, within the design carved into the sapphire glass,” he said. “So, sometimes, you don’t see the hands.” The focus is what he calls “slow luxury.” “I want my watches to take people’s minds away from that feeling of always being in a rush,” he said. “If you are in a rush, just look at your cellphone.” An example would be his ornate Potamides watch ($275,000), named for the water nymphs in Greco-Roman mythology. Made of 24-karat gold, sterling silver, diamonds and what Mr. Bicakci called “very unforgiving” sapphire crystal, it features a reverse-engraved intaglio image of a dragonfly whose wings, at certain times, obscure the minute and second

hands. The watch’s gem-encircled dial is surrounded by a 4-inch cuff laden with still more diamonds and styled in the shape of outstretched wings. “It hides the time away, that’s what I care about,” he said. “To make someone forget about time.” Mr. Bicakci knows a thing or two about time. A Turk of Armenian descent, he took more than nine years to create an 85-piece collection, a trial-and-error process documented in a large-format book, “Sevan Bicakci: The Timekeeper,” with text by Vivienne Becker, published in December by Assouline. As with his rings, Mr. Bicakci relied on a team that included goldsmiths, stonesetters and a sculptor to complete his designs, with their Turkish motifs like pomegranates and minarets. The movements were made at the Swatch-owned ETA factory in Switzerland. Now 46, he dropped out of school at 12 to apprentice with a relative who was a goldsmith. He opened his own workshop by the time he was 18, and now has salesrooms in Istanbul and Miami. For years, collectors and film producers have sought out his ornate rings. Anthony Hopkins wore Bicakci jewelry in the 2017

film “Transformers: The Last Knight,” as did Cate Blanchett in “Ocean’s Eight” last year. And Whoopi Goldberg wore his Octopus bracelet-ring (not for sale) and his gold, silver and diamond Astrolabe watch ($280,000) to the 2016 Oscars. It was her search for the right bit of red-carpet bling that first led her to Mr. Bicakci’s work. “I sent him an email to say: ‘Hi, my name is Whoopi. I’m an actor, I’ll be doing the Oscars and I wonder if you would ever lend me some of your jewelry. Your look is extraordinary, and yes, it’s really me,’” she said by telephone from New York, where she is the moderator of the “The View” on ABC. “I thought he was one of the most innovative jewelers. Like Lalique or early Cartier,” added Ms. Goldberg, who is an Emmy, Grammy, Oscar and Tony winner. “I’m a huge fan, and when I grow up, one day I’m going to get one of those watches.” Her favorite, she said, continued to be the one she first wore in 2016: “It’s gorgeous and on my skin tone, even more gorgeous. His work is just sublime.” Mr. Bicakci had been working on his watches for several years, but his plans to

expand into horology solidified after he saw a 2012 exhibition of rare, centuries-old mechanical clocks, including some made by meditative Ottoman-era dervishes, on display at Topkapi Palace in Istanbul. “Some of these dervishes dedicated their lifetimes to the making of clocks, without caring about trade,” Mr. Bicakci said during an interview in his atelier’s offices on a back street near the Grand Bazaar. “They didn’t make them to sell. One of them made only nine clocks in his lifetime, but he excelled at it, all by himself, without an industry behind him to back him up. I liked seeing that level of commercial indifference.”

And the makers were experimental. “They weren’t educated by masters,” he said. “Some of them were true dreamers: One made a decimal watch dividing the day into 10 ‘hours’ instead of 24. I liked the imagination of someone who just takes time the proper kind of time to create, despite market conditions. These watchmakers became my heroes.” “I’m happy I can afford to take my time,” he added. “If you stop to think what the price is going to be and who may buy it, you’ll end up not making it.” Still, the lengthy creation process, inflation in Turkey and the country’s currency ex-

“It hides the time away, that’s what I care about, to make someone forget about time.”

change crisis made pricing his watches very complicated. Prices start around $100,000 and rise significantly, depending on the materials and labor. Thirty of the watches were shown at a small in-store event last year during Art Basel Miami Beach, but the first public exhibition of the entire collection was scheduled Feb. 15 to 17 at Watches & Wonders Miami, an annual event sponsored by the Fondation de la Haute Horlogerie and the Miami Design District. One of his easier-to-read pieces is Gate of Heaven, which also is one of the collection’s most expensive (price upon request). It features more than 100 white diamonds and dozens of smaller black ones, ribs of rose gold that look something like a radiator grille, and a small version of Mr. Bicakci’s trademark dagger dangling from the clasp. Another user-friendly watch is the gold, silver and diamond Loves Me, Loves Me Not ($160,000). The dial has an acrylic painting of 12 daisies, with petals that increase in number to match the hour. One of the more macabre — and a favorite of Mr. Bicakci’s — is the Full Moon watch ($240,000) with its reverse-engraved intaglio of a skull and bones hovering over a graveyard. The Medusa ($170,000) shows her disembodied head encircled by fanged snakes while the Arachne ($240,000) features black diamonds and a reverse-engraved intaglio of a spider. But the designs aren’t meant to be frightening, Mr. Bicakci said. “The spider, for example, is a holy creature according to Islam,” he said. “Legend holds that spiders helped the Prophet Muhammad to hide in a cave by spinning a web across the opening so his enemies thought there was no one inside.” Never forgetting his Istanbul roots, Mr. Bicakci also made the Conqueror, featuring dozens of diamonds, a painting on gold leaf of minarets and a portrait of the 15th-century Ottoman leader Sultan Mehmet II reverse-engraved on the underside of the sapphire crystal. Was the jeweler confident he could make the transition to watches? “I was very encouraged by what I had seen in Topkapi Palace,” Mr. Bicakci said. “Unlike the dervishes, I have bills to pay but already having experience in jewelry reassured me that I had the necessary resources and could have fun jumping into another kind of risky business.”

There is no ordinary day with Atasay. It inspires and encourages everyone, old, young, male or female to express their feelings and style every single day. Everybody has the right to wear whatever they feel like and crown their style with a piece of Atasay jewellery.

Atasay launched eight new jewellery retail stores in the UAE adding to the existing two in Dubai Mall.

he events were certainly sparkling ones, from the outstanding range of exquisite jewellery on offer to the guests, including the epitome of super-star glamour, Atasay Brand Ambassador Meryem Uzerli, well-known actress and model and other familiar faces. They provided a rare opportunity to see some of the finest bespoke jewellery available and a chance to see some remarkable Atasay creations on some of the invitees. Meryem Uzerli “I am so happy to be here and proud to be the face of Atasay which has a very long background of culture, superb craftsmanship and heritage. Since Atasay has a very reliable and influential history I feel confident to link my career to them. I used to wear the brand’s jewellery before becoming the official brand face. I love their jewellery and am delighted to be with them here in this region which is one of my favorite parts of the world.”. Vying for attention were dazzling examples of Atasay brands such as Vive le Roi for men, showcasing tie pins, misbahas, rings and bracelets, Belle Atasay fashion jewellery, the LovEver diamond collection,  Almas for unique diamond memories, Jou for everyday fast fashion jewellery, the stunning Sultana Huyyem collection and Myras, where history meets current fashion trends. Choices for lifestyles means there is a special piece for everyone from children to older customers, daytime to evening wear, all with the Atasay lifetime guarantee of exemplary customer service.

The new stores, located in Sahara Centre and Mega Mall, Sharjah, Al Wahda and Dalma Mall, Abu Dhabi, Al Ain Mall and Jimi Mall in Al Ain, Dubai Festival City and the Arabian Centre, Dubai  are truly showcases for the extraordinary skills of the Atasay craftsmen, while ensuring the customers are relaxed and comfortable. Each has a long hospitality bar, digital mirror screen in front of the style wall, high volume displays and a serene consultation lounge for making those important decisions with experts on hand to guide and advise, all contributing to an atmosphere of unhurried wellbeing and the secure knowledge that each and every customer is equally appreciated. Atasay, the quality jewellers established in 1937,has been showcasing the latest trends in gold and diamond jewellery to the customer since moving from the global wholesale market to retail in 2002 and arriving in Dubai 8 years ago. It has brought together more than 110 million women world-wide with its jewellery due to the success in production since its foundation in 1937 with its superb, award-winning creations and globally employs over 1,000 dedicated employees, artisans, craftsmen and associates. Working with prize-winning designers and masters in their field and World Colour Council delegates, Atasay provides a myriad of selections, mirroring world-wide trends, and aspiring to complement every moment with exquisite accessories. For women who

identify themselves with jewellery that reflects their culture, acquire gorgeous pieces that tell a story or simply keep up with the latest trends in fashion, Atasay’s wondrous collection of bespoke items from their collections is unequalled. In addition to the eight new stores, a further five are planned to open in Fujairah, Ras Al Khaima and Sharjah in September, bringing the total number of retail stores in the U.A.E. to fifteen by the end of 2018. Atasay Kamer, present CEO, shared his philosophy; “There is no ordinary day with Atasay. It inspires and encourages everyone, old, young, male or female to express their feelings and style every single day. Everybody has the right to wear whatever they feel like and crown their style with a piece of Atasay jewellery. We encourage our customers to become a new person, the person they have always dreamed of being. The only thing they need is imagination, the rest is up to us and we are committed to creating the most exquisite jewellery that celebrates and enhances the natural beauty of each and every individual.”

Tiffany's raises profit forecast, launches new solitaire ring Tiffany & Co outstripped quarterly estimates for profit and revenue and raised its full-year earnings forecast as the retailer sold more jewelry in China and the Americas. Second-quarter global net sales rose 12 percent to $1.1 billion and first half sales net sales increased 13 percent to $2.1 billion, reflecting geographically broad-based growth and increases in all product categories. Net sales in the Americas, accounting for almost half

CANDLE LANTERN COLLECTION

of the company’s total sales, rose eight percent to $475 million in the second quarter and eight percent to $900 million in the first half. Sales in Asia Pacific grew 28 percent to $301 million in the second quarter and 28 percent to $629 million in the first half. The company mainly attributed the rise in both markets to higher spending by local customers. In past September, the jeweler unveiled the Tıffany True, an new innovative diamond solitaire ring.

by TEKIN SEYREKOGLU JEWELRY Known as one of the first and finest jewellers in Turkey since 1963, Tekin Seyrekoglu succesfully established multiple jewellery lines with extraordinary designs and quality. Due to his vast passion for history and tradition, he created an exclusive line called "Candle Lantern,’’ inspired by his oldchildhood memories of beautiful vintage lanterns lighting dim roads and dark corners. He also created a unique edition of candle lantern necklaces and rings, combined with different colourful enamels scattering away the shadows of night where each and every single lantern holds a story of its own and shines with everlasting beauty!

that include logistics, security, diamond grading, gemstone identification and grading, as well as lighting products. The exhibitors will be showcasing their special products and collections to over 16.000 professionals of the sector.

and the Far East will be hosted during the exhibition. The business meetings to be held during the course of the exhibition are expected to generate around 80 percent of Turkey’s jewellery exports in the coming term!

This Fall's exhibition will be featuring over 800 local and international jewellery companies and brands, representing a wide range of product groups and sectors including gold, gold mountings, refined gold, gold jewellery, diamonds, a wide variety of coloured gemstones stones, pearls, silver, silver accessories and silver household items, luxury watches and fashion watches, molds, shop window decorations, machinery and equipment, safes, software, as well a wide range of services

International buyers at IJS As has become customary, the exhibition operates its International Buyer Delegation Programme in coordination and with the active support of the Ministry of Trade of Turkish Republic. The programme is organised by the General Secretary of the Istanbul Minerals and Metals Exporters Association (IMMIB), as well as the Turkish Jewellery Exporters’ Association (JTR) and UBM Rotaforte, with the joint goal to stimulate and grow jewellery exports, to find and encourage new markets and to preserve its impressive, existing global market share. As part of the programme, not less than a 1000 buyers of the jewellery sector from Europe, the Middle East, the Americas, North Africa

Master and young jewellery designers Organized every year by the Turkish Jewellery Exporters’ Association (JTR), as part of the Istanbul Jewelry Show, the Designer Market pavillion will be bringing together master and young jewellery designers on the same platform. The designers will showcase their signature designs and jewellery at the Designer Market specially created at the exhibition venue.

s aresult of many years of investments, expansion, diversification and lots of hard work, the Istanbul Jewelry Show has become on of the top five jewellery exhibitions in the world. It is Turkey’s first and only specialised international jewellery exhibition, organised by UBM Rotaforte Uluslararası Fuarcılık A.Ş., a firm that can boast not less than 34 years of experience, at CNR Expo, the Istanbul Fair Centre .

WORLD’S LARGEST RETAILER OF DIAMOND JEWELLERY, SIGNET JEWELERS, TO JOIN PILOT OF DE BEERS GROUP-LED BLOCKCHAIN PLATFORM, TRACR

TracrTM, the end-to-end diamond blockchain being developed by De Beers Group in collaboration with the diamond industry, announced that Signet Jewelers, the world’s largest retailer of diamond jewellery, will become the first retailer to join its pilot programme. 62

Signet has deep insights into the needs of consumers, and our collaboration will ensure that consumers remain the focus of Tracr.”

Signet will join the growing list of industry leaders trialling the platform during its pilot phase and enabling Tracr to complete the first digital link all the way from diamond production through to retail. A Signet project team will work alongside the Tracr team to ensure the platform meets the needs of the jewellery manufacture and retail sectors, with the partnership initially focusing on the tracking of diamond jewellery and expanding the pilot’s scope to cater for smaller-sized goods.

Responsible sourcing of diamonds has always been an integral part of Signet’s corporate ethos, and this will be further strengthened through our cooperation with Tracr.

Bruce Cleaver, CEO, De Beers Group, said: “We are delighted to welcome Signet to the Tracr pilot programme. Tracr is focussed on bringing the benefits of blockchain technology to the full diamond value chain providing consumers with confidence, the trade with increased efficiency and lower costs, and lenders to the industry with greater visibility. Signet has deep insights into the needs of consumers, and our collaboration will ensure that consumers remain the focus of Tracr.” Virginia C. Drosos, CEO, Signet Jewelers, said: “Responsible sourcing of diamonds has always

been an integral part of Signet’s corporate ethos, and this will be further strengthened through our cooperation with Tracr. We are joining the Tracr pilot because we believe the project not only has strong potential to facilitate increased transparency and confidence within the industry, but it can also foster much-needed digital transformation.” It is intended that a digital certificate created by Tracr for each diamond registered on the platform, storing its key attributes and transactions, will enable retailers to provide consumers with confidence that their diamond is natural, conflict-free and has been tracked across the value chain. Tracr is being developed by De Beers Group with support from BCG Digital Ventures and is expected to launch later this year. In early May, De Beers Group announced that it had successfully tracked 100 high-value diamonds along the value chain on Tracr, marking the first time a diamond’s journey has been digitally-tracked from mine to retail.

HRD Antwerp to establish diamond jewellery grading lab in Dubai

RD Antwerp NV signed a Memorandum of Understanding (MoU) with Stargems DMCC to open its new diamond jewellery grading lab at the Turkish Trade Centre, in the Free Zone of the Dubai Multi Commodities Centre (DMCC), on the 34th floor of the Almas Tower. With this new partnership, HRD Antwerp aspires to expand its presence in the Middle East by targeting some of the largest and most promising diamond markets. "Within the diamond industry, trust is key. As a retailer, we want our customers to have confidence in our products. By certifying our entire inventory with the highly reputable HRD Antwerp brand, our custom-

ers can be assured about the authenticity and quality of our jewellery," Shailesh Javeri, Chairman of the Stargems Group, said. Michel Janssens, CEO of HRD Antwerp, added: "We are delighted to be setting up our first diamond jewellery grading lab in the Middle East. Transparency and authenticity form the bedrock of our work and we want to make sure that Stargems’ clients purchase their jewellery with full confidence and peace of mind. We look forward to beginning our partnership and introducing a new standard to the industry." Both Antwerp and Dubai are global leaders in the diamond trade and this partnership will undoubtedly contribute to

Standing, from left: Ramazan Mete, HRD Antwerp - Istanbul; Gautam Sashittal, CEO, DMCC; Ahmed Bin Sulayem and Bhavesh Javeri, CEO, Stargems Group. Seated: Michel Janssens (left) and Shailesh Javeri.

further strengthening the ties between the two diamond hubs. It will also have a positive impact on the industry as whole, boosting trust and confidence of consumers. Ahmed Bin Sulayem, the DMCC's Executive Chairman,

said his organization was delighted to be welcoming HRD Antwerp to both Dubai and the DMCC community. "We fully support this collaboration, which we believe will have a positive impact on the industry as a whole," he said.

AWDC and Alibaba partner to bring Antwerp diamonds directly to Chinese consumers

he Antwerp World Diamond Centre (AWDC) and Alibaba Group announced that they have entered an exclusive partnership to offer Antwerp certified diamonds to Chinese consumers via

Alibaba’s B2C marketplace, Tmall. The cooperation agreement was signed in the framework of the first China International Import Expo (CIEE), which is being held in Shanghai past November.

The Antwerp diamonds will be available under the name "Shape of Antwerp" on the namesake flagship store on Tmall. The platform is secured at several levels, enabling customers to shop with peace of mind. Each diamond is accompanied by an HRD Antwerp diamond grading report detailing the 4Cs of the stone (cut, clarity, carat and colour). Additionally, HRD will laser a QR code onto the girdle of each diamond, which will include its grading report. By scanning this code, blockchain technology will enable the customer in China to follow the journey of the diamond he or she purchased back to Antwerp. Once consumers have selected a diamond, they can have the stone set into a piece of

jewellery. The Shape of Antwerp diamonds and diamond jewellery will be sold exclusively via Alibaba’s Tmall platform: Shape of Antwerp Online Flagship Store. The collection will also be on display during the CIEE. The cooperation agreement was signed by Nishit Parikh, President of AWDC, and Jessica Liu, President of Tmall Fashion and Luxury, Alibaba Group, in the presence of Kris Peeters, Deputy Prime Minister of Belgium and Minister of Employment, Economy and Consumer Affairs, in charge of Foreign Trade, and Zhao Ying, Chairman of Alibaba Global Business Group. The signing took place in the residence of the Belgian Consul General in Shanghai.

Want to become a diamond master? Join our education programme and learn from the best.

Our international programme combines enduring tradition and constant innovation, with the diamond grading and identiﬁcation course as our ﬂagship. HRD Antwerp education stands for technical excellence, practical experience and the joy of working with diamonds. Check our courses at www.hrdantwerp.com

HRD Antwerp is based in the world’s oldest diamond capital. Discover more at

www.hrdantwerp.com 65

The House of Harry Winston opens a new salon in Istanbul.

he House of Harry Winston, the legendary “King of Diamonds,” and international luxury brand announces the opened of its first retail salon in Istanbul. Located in the worldclass Emaar Square Mall, the 249 square meter salon will house Harry Winston’s exquisite jewelry and timepiece collections, including the finest diamonds and rarest gemstones available. Designed to capture the elegance and intimacy of a private estate, the new twostory salon reflects a contemporary variation on the traditional Winston style. A soft taupe

and grey color palette complements the custom designed black lacquer and antique bronze furniture, with bespoke chandeliers, hand-beaded silk walls and antique accents. A grand marble foyer, decorated with a striking black and white starburst motif, displays the House’s most exquisite creations. Dedicated areas for Harry Winston’s high jewelry, bridal, and state-of-the-art timepiece collections, ensure clients receive the discreet and highly personalized shopping experience that the House is known for, while private selling rooms provide a luxurious space for the ultimate in exclusivity.

A brand for fearless and strong women, Kısmet by Milka is growing with the motto ‘moving forward’

#moving forward

Creating added value and branding are a few of the critical components of becoming successful in the jewellery sector. Kısmet by Milka’s chief designer, Milka Karaağaçlı, answered The World of Jewelry Magazine’s questions about the firm’s success story and how the successful use of social media channels has contributed to the company’s growth.

Milka Karaağaçlı Kısmet’s advantage is that it is trendsetting, by leading and setting the direction the industry’s design trends are taking. Our collection always will be exciting and refreshing.

aola de Luca of Trendvision Forecasting described Kısmet by Milka as one of the Turkish brands that has broken into the international market successfully. Can you talk us through your experiences in developing your brand’s messages?

Cultural elements are very important and I came to understand that authenticity in design is more important than anything. Rather than emulating other cultures, the creation of our own ‘living space’ or platform for our own expression is more important. At the same time, I

look at more universal things as I bond the traditional with different elements. Stories of brands and collections are all about uniqueness, wholeness, and being a step ahead of the world. To succeed, one needs to continue moving forward. It is critical to success on this journey. There is no other way for brands to create a position in the market. Of course, you have to use marketing tools correctly. To be successful, you need to pay attention to every detail, be correct in your pricing and meticulous in your after sales services.

How did you start your journey in the jewellery world? Can you talk about the processes that brought you here? I always had a passion for jewellery and started designing eight years ago as a hobby. I left my profession of 14 years and opened a new page. I created my own brand, Kısmet by Milka. Kısmet, as a brand, is in fact a pioneer of the fine jewellery industry in Turkey. Eight years ago, Turkey had only two jewellery categories. On the one hand, there was the traditional jewellery that consisted mostly of heavy gold jewellery. These bulky pieces, while sold by jewellers, were not intended to be worn frequently. They

were regarded as a means for the preservation of wealth and therefore to be kept in safes. On the other hand, there was fashion jewellery, also called bijouterie, that is not of great value. Between these two categories, we created a new segment, fine jewellery. These are valuable pieces that can be worn daily. Its price point lies in between the two existing categories. And since there was such an opening in the market, we fit right in! I believe that we were agents of change, and transformed the perception of the Turkish jewellery industry. With our growing recognition, others followed suit and started copying us. I think that is a

natural process and a logical development in marketing. It creates competition and improves quality and performance. Established, successful brands will survive the test of time while copycats will ultimately disappear. Kısmet’s advantage is that it is trendsetting, by leading and setting the direction the industry’s design trends are taking. Our collection always will be exciting and refreshing. To stand out in this sector you must be a very good designer. We always endeavour to do the ‘neverbeen-done,’ always trying to be the first. To be a pioneer is very important to me. I want the stories Kısmet pieces tell

Of course after positive feedback people started to copy us. I think this is a natural process. It is an expected development in marketing. Established brands will survive the test of time while copiers will be long gone. Competition is something like this, and it is very good.

to be those that pop up in people’s minds. As a result, Kismet has become a brand that transcends Turkey. Many A-list celebrities like Naomi Watts and Madonna wear Kısmet. I believe this is one of the things a brand owner is most proud of. Who is your target audience and what is the medium do you use to reach out to this audience? Our designs are inspired by courageous, forward thinking, unstoppable women and we reflect this group. This is why our motto is #movingforward. We reach our target audience through social media channels. We get to connect very rapidly thanks to these channels,

reflecting our feelings and thoughts right then and there. How would you describe your collections? Each piece we make tells a story, generates a feeling and carries the strong Kısmet energy. An outcome of new and forward thinking, our designs create excitement. What is your favourite collection? I have my favourites in every collection and I believe they all have a particular energy. My solitaire, family ring that has our initials, M-ring, Mayra and Mateo earrings are few ones that I always wear.

What are the effects of social media for your brand becoming well known? Do you have any tips to offer? Social media continues to be a treasure for brands. For example, our current Instagram follower count is 103K. We are living in a time of multiple digital marketing tools and numerous social media channels. While seven years ago we only had Facebook, today we have Instagram, Twitter, Snapchat and many more. You can reach people anywhere within seconds through social media and it greatly enhances our brand’s reach. We are also offering style advice since we are a designer brand. But this is not the only

factor. We made significant investments in the USA, with a showroom in New York and the appointment of a public relations agency. We participate in the Couture show in Las Vegas annually and visit our customers regularly. We use every marketing tool effectively and I believe this is reflected in our overall success. What can we look forward to from Kısmet by Milka in 2019? The year 2019 promises to be a very exciting one. We are planning to open two more shops. We are also entering new markets.

AWDC and Bain publish 2018 Global Diamond Industry Report A resilient industry shines through

he Antwerp World Diamond Centre (AWDC) and Bain & Company published their eighth annual report on the global diamond industry. This yearâ&#x20AC;&#x2122;s edition covers industry developments in 2017 and the first half of 2018, taking a close look at key industry trends.

The report begins with the important developments along the value chain. In subsequent sections, it reviews the factors that influenced the rough diamond sector's production and sales, the midstream's performance and global diamond jewellery demand in the major markets, and also provides an update on the long-term outlook for the diamond industry through 2030. The 2030 supply-demand forecast considers announced production plans, recent changes in mining operations, potential additional sources of supply,

expected changes in global and regional macroeconomic parameters, and the potential effects of lab-grown diamonds. Following a period of high volatility, 2017 was strong for the diamond industry, with a growth of approximately two percent across all segments of the value chain. In 2018, revenues are expected to grow again, and even accelerate in the mining and jewellery retail segments. Volatility persisted in 2018 and the final outcome for the year will be determined by sales performance during the 2018 holiday season.

Digital is redefining business models for diamond jewelry retailers

Rough sector performs well The major rough diamond producers delivered an unprecedented production growth of nearly 20 percent in volume during 2017. The production increase came mostly from mines that produce lower-quality assortments. The mining companies' revenues grew by two percent overall, indicating a positive trajectory for the second year in a row. In 2017, some major producers reported decreases in their earnings before interest and taxes margins, mostly due to currency appreciation in the various production countries. However, the mining companiesâ&#x20AC;&#x2122; profitability bounced back in the first half of 2018. Midstream holds on The midstream's profitability remained positive with margins of between one to three percent. Assuming that the demand for diamond jewellery will continue to rise through the end of 2018, overall profitability of the cutting and polishing segment is expected to improve. Midstream inventories increased in 2017â&#x20AC;&#x201C;18, particularly in lower-quality and small-size assortments, as midstream players prepared to ride another demand surge for those categories in 2018.

India continued to grow its leadership position in the cutting and polishing segment due to lower labor costs,

grew two percent US dollar terms in 2017, fueled by strong macroeconomic fundamentals in the US, resurging demand from Chinese millennials and increasing sales in the self-purchasing category in China. The demand for diamond jewellery is expected to accelerate in 2018. However, if the trade war between the US and China continues, it may have a negative effect on the growth prospects for global demand in the short to medium term. Three key industry trends are shaping the future of the diamond industry.

a favourable regulatory environment and relatively better access to financing. The report contends that even while financing availability remains an issue in the midstream segment, transparent and financially healthy companies report little impact on their ability to secure funding. In line with positive luxury market trends, global diamond jewellery sales

One Increasing influence of digital technologies One of the most important opportunities is the increasing influence of digital technologies. Emerging and maturing digital technologies are affecting all parts of the value chain, enabling diamond producers, midstream players and retailers to increase efficiencies within their operations. Marketing efforts that use digital technology can also deliver superior customer experiences.

The retail price of gem-quality lab-grown diamonds nearly halved in the past two years, while wholesale prices dropped threefold

Two Lab-grown diamonds The second trend is the growing presence of lab-grown diamonds. Lab-grown diamonds are clearly here to stay. De Beers Groups’ launch of a lab-grown fashion jewellery retailer called Lightbox Jewellery, and the US Federal Trade Commission ruling on diamond terminology were major news in 2018. Lightbox does not provide grading reports for its products, as it states that grading reports exist as a record of a diamond’s rarity and, therefore, its value — with products that can be mass-produced to a particular recipe, Lightbox notes that grading reports could confuse consumers about the value of their lab-grown stones. The effects on natural diamond demand and price will depend on consumers’ perceptions and preferences. If the natural diamond industry can differentiate its stones from lab-grown diamonds (perhaps positioning lab-grown diamonds as fashion jewellery rather than luxury items), the effect on natural diamond

demand by 2030 will be limited up to five to 10 percent in value terms. Given the pace of declining production costs and wholesale and retail prices, the report's authors expect lab-grown stones to become accessible to a wider consumer audience, potentially increasing demand for diamonds in general. In the short to medium term, growth of lab-grown diamonds will be limited by manufacturing capacity, access to technology and intellectual property, and availability of funding. Three Younger generations of consumers The third key trend is the shifting preferences of younger generations of consumers. Younger generations of consumers are causing industry players to rethink their sales and marketing strategies. The selfpurchase product category continues to grow as millennial and Generation Z’s female spending power increases. Younger generations are also more inclined to consider the opinions of social influencers, customer reviews and "likes" when making

Industry players must adapt their marketing strategies to attract younger consumers

purchasing decisions. Social media shopping is expected to increase significantly as the spending power of Gen Z rises. Many retailers are already strategizing how the shifts in preferences will change their approaches to marketing and operations. The long-term outlook for the diamond market remains positive. Rough diamond supply is projected to be minus one percent to one percent plus annually in volume terms. The report's authors expect demand for natural rough diamonds to stay flat or grow up to two percent annually through 2030 in real terms, backed by strong fundamentals in the US and the continued growth of the middle class in China and India. The report's outlook incorporates possible demand substitution from lab-grown diamonds, which is estimated to be five to 10 percent. It also reflects fundamental long-term supply and demand factors rather than short-term fluctuations.

TURKISH JEWELLERY CAUGHT THE DUCHESS OF SUSSEX’S FANCY The Duchess of Sussex wore the Turkish symbol on her right hand on her visit to the Royal Variety Charity's residential nursing and care home, Brinsworth House. During a visit to Brinsworth House, v Markle spotted with a ring that almost stole the spotlight from her

Hamsa Ring, Kismet by Milka, £240

engagement ring. The unique bauble was a delicate, hand-shaped ring by Turkish brand Kismet by Milka and eagle-eyed royal fanatics noticed that it was actually a hamsa, a symbol with a long history and great meaning. The holder of the Hamsa expects to be protected from all negative energies and brings its owner happiness, luck, health, and good fortune. The 'Hamsa' ring is a 14k rose gold

piece, which features a sapphire and is available from Kismet by Milka. Kismet by Milka is a Turkish jewellery brand that has been worn by royalty such as Beyoncé and Madonna. Meghan's good friend Priyanka Chopra, who recently added Jonas to her surname, has also worn the brand, which creates gorgeous, ethereal pieces.

The Turkish Jewellery Industry to Follow New Strategy Following his election as the new President of the Turkish Jewellery Exportersâ&#x20AC;&#x2122; Association (JTR) Mustafa Kamar gathered his new board, management and members to discuss the direction the Turkish jewellery industry is taking and to define an export target and consequently devise a detailed five-year plan for the sector that will serve as a guideline for the entire industry.

t the meeting you said that to guarantee a brilliant future for the Turkish jewellery industry, all our industry's parties would need to work closely and harmoniously to attain its goals. You also introduced a five-year plan. What are its major elements? First of all, I like to reiterate my sincere thanks and gratitude for the trust my colleagues and the members of JTR have given me. I am sure that together with my colleagues on the board, the JTR management and the members, we can take the steps necessary to propel our industry forward and significantly expand our export quota. In my maiden speech, I specifically quoted a number. By the year 2023, our industry should be exporting no less than $12 billion worth of jewellery products! What needs to be done to achieve this? There is nothing new under the sun. First of all, we need to streamline the bureaucratic processes that hamper the smooth sailing of our production and the consequent exports. Donâ&#x20AC;&#x2122;t get me wrong: the Turkish government has been a great supporter of our efforts to grow our industry's production and increase its exports. But we still need to

Take, for example, the UAE's jewellery exports to Qatar. In 2017, the UAE exported $687 million to Qatar. In contrast, the Turkish jewellery industry exported just $7 million to Qatar in the same year. That needs to change!

jump through too many bureaucratic hoops. To be more effective, competitive and consequently more profitable, the government needs to eliminate the trading barriers our suppliers encounter and ease the bureaucratic processes, including the financial processes . Therefore, all parties that are involved governmental and private - to these processes need to rally together to implement the necessary changes so we can indeed reach that $12 billion goal! Where will you find new markets? Naturally, we will continue to service our current, classic export markets. But we also need new target markets and new audiences. Therefore, it is not enough to look at our markets in the Middle East, such as Iran, the United Arab Emirates,

and other countries there. To be successful, we first must run a careful analysis of the current, global jewellery consumer markets and identify those markets where we do not have a significant presence and that we could break into. It is here that the cooperation with the government, with the economic offices and with the representatives at our trade missions and embassies all over the world is of vital importance. What can we do immediately to grow Turkish jewellery sales abroad? Of course, we need to take a close look at those markets that we already service and explore how we can conquer a large market share in them. We also need to look if we

So, we produce the jewellery in Turkey, then export a big part of that production to the UAE, just to see the UAE sell it further on, with a much higher added value. Why aren't we benefitting from this higher added value ourselves? The Turkish jewellery industry and trade needs to look carefully at those markets the UAE is selling our goods in, gain access to those same markets and being exporting directly to the markets! EXPORT OF U.A.E. AND TURKISH JEWELLERY INDUSTRIES

SWITZERLAND KUWAIT Ä°RAN HONG KONG QATAR INDIA IRAQ NEPAL FRANCE JORDAN TAILAND SINGAPORE ENGLAND S. ARABIA LEBANON BAHRAIN ITALY OMAN U.S.A. TURKEY U.A.E. OTHER MARKETS TOTAL 80

EXPORT (Million USD) U.A.E. TURKEY 531 3 532 1 598 397 678 110 681 7 1.700 1 2.600 547 109 118 16 124 15 165 3 206 19 212 23 255 7 265 62 342 1 376 47 400 0 469 207 497 1.400 1.150 1.250 12.008 4.116

are being effective in those markets. Take the United Arab Emirates (UAE), for example. We export $1.4 billion to the UEA. But at the same time the UAE exports no less than $12 billion to other markets. Now we all know that the UAE is not a manufacturing centre of jewellery, but rather an important distribution hub. So, we produce the jewellery in Turkey, then export a big part of that production to the UAE, just to see the UAE sell it further on, with a much higher added value. Why aren't we benefitting from this higher added value ourselves? The Turkish jewellery industry and trade needs to look carefully at those markets the UAE is selling our goods in, gain access to those same markets and begin exporting directly to the markets! Take, for example, the UAE's jewellery exports to Qatar. In 2017, the UAE exported

$687 million to Qatar. In contrast, the Turkish jewellery industry exported just $7 million to Qatar in the same year. That needs to change! Itâ&#x20AC;&#x2122;s not guesswork. We need to do our research, look at the numbers, understand where added value can be realised and consequently act upon these analyses. That needs to be and under my guidance, this will be the Turkish jewellery industry's new strategy!" Is five years enough to reach your stated goals? We need to remain realistic and first do our homework, all of us, together. After we have evaluated the data and crunched the numbers, we will share the outcome of our research with our members. We need then to draw our road map based on these analyses and data, and not work on assumptions. There's lot of work ahead of us!

Avedis Kendir; a gift from Ä°stanbul to the World He started creating his own toys when he was only a small child. He always loved turning pieces of his imagination into reality. He stepped into the Grand Bazaar when he was only 10 years old. After half a century, he is still dreaming in the sparkling world of jewellery. The hands that crafted toys are now creating precious pieces for Queen Elizabeth of the United Kingdom, Japanâ&#x20AC;&#x2122;s Empress and many Hollywood A-listers. And Avedis Kendir is writing his own name prominently in the jewellery history books!

Avedis Kendir, created his own style ArtAvo and is known as a hidden gem of the Grand Bazaar

M Photo: Korhan Karaoysal

any great craftsmen and artists were raised in Anatolia, a part of Turkey that boasts more than 5,000 years of jewellery-making tradition. Throughout the centuries, these Anatolian master jewellers’ works were turned into an emperor’s crown or a sultan’s dagger. For thousands of years, Anatolia has delivered master jewellers to Turkey - and the world. One of the great examples of today’s master jewellers is Avedis Kendir. He is continuing his adventure the way he started it when he was just 10 years old for half a century. Enlarging his horizon and freely using his imagination, he is continuing to breathe in the magical scent of jewellery. It is very hard to describe him only as a jeweller. Avedis Kendir is not someone who just shapes gold, or someone who uses precious stones in his designs. He is someone who loves bringing different elements together and giving them life. He loves giving value to a jewellery piece that would otherwise be less valued. To him, it is very much possible

Queen Elizabeth’s famous Tulip Brooch carries Avedis Kendir’s signature. Avedis Kendir created his own style with ArtAvo. He is known as a hidden gem of the Grand Bazaar to give a unique value to any kind of jewellery item when it is crafted masterfully. Roots in the Grand Bazaar Craftsmanship and art are in his family’s roots. Avedis Kendir’s father was a carpenter. Many members of his extended family also spent many years in the Grand Bazaar and in the jewellery industry. Many family members still continue to do so. His journey, that started off in a jewellery atelier, is still continuing with the same excitement. Every piece Avedis Kendir makes is one of a kind. Every single design has its own soul and energy. There is no

way one will see an identical piece of jewellery elsewhere that carries his name. Every design has its own story. This is why when you immediately recognise a piece of jewellery as an Avedis Kendir work: you know that it is one of a kind. An artist of international renown Avedis Kendir’s work is not only well known in Turkey, but is recognised globally. This is why Queen Elizabeth, the Japanese Empress Michiko, many other heads of state, and Hollywood A-listers, such as Elizabeth Taylor, Barbara Streisand, Jennifer Aniston, Beyoncé and Christina Aguilera were, and are, his customers. He also designs

bespoke pieces for official events. His pieces are auctioned at many well-known auction houses, such as Sotheby’s and Christie’s. Turkey’s jewellers have been designing and manufacturing haute couture jewellery for more than 40 years, but Kendir became renowned by creating his own style, ArtAvo, a name known as the hidden gem of the Grand Bazaar. Avedis Kendir’s designs are sold worldwide: in Paris, Milano, London, New York, Dubai, Beirut, Rio de Janeiro and Tokyo. The artist is very selective in choosing his international sales points. He operates only one store in Turkey, at Çırağan Palace in İstanbul.

Inspired by Christopher Columbus Avedis Kendir is not only giving life to his jewellery designs, he is greatly influenced by world history and objects which form important elements from which he draws

inspiration and uses his imagination. One of the objects that inspired him is the Santa Maria, the ship Christopher Columbus sailed on during his journeys to discover the â&#x20AC;&#x2DC;new world,â&#x20AC;&#x2122; America. Avedis Kendir created a replica of

the ship that displays dazzling and immense detail. It was made of gold, silver and numerous precious stones. It took him 10 years to finish the piece, and was exhibited at the Archivo de Indias Museum in Sevilla, Spain, where it was viewed and admired by many thousands of visitors.

JTR ups efforts in hosting VIP buyers' delegations

As part of its new strategy to sell more goods to the Gulf region, the Turkish Jewellery Exporters Association (JTR) has significantly increased its efforts and investments in attracting buyers from the United Arab Emirates (UAE). This year, the VIP delegation from the UAE included buyers from the Malabar, Damas, Al-Kassar and Abdullah Bahmdein companies. Following his election as the new president of the Turkish Jewellery Exporters' Association (JTR), Mustafa Kamar has been very outspoken about his wish to increase Tukey's jewellery exports. Recognising how important the UAE and in particular Dubai is for Turkish jewellery exporters, JTR is reaching out to more and larger companies. Significant efforts and great investments were expensed to identify new, potential

buyers from the UAE and consequently, a VIP buyers list was composed. Among the most important buyers invited from the UAE, and possibly from the Middle Eastern jewellery market, were representatives of the Malabar, Damas, Al-Kassar and Abdullah Bahmdein companies. JTR President Mustafa Kamar expressed his pleasure with the presence of these buyers: "Our biggest target market

is the Middle East. We export most to the UAE , in particular to Dubai. Most of these exports are absorbed by about ten to 15 UAE companies, that consequently distribute them further. Ultimately, Turkey's interest is to export directly to the end markets and to be less reliant on distributors. In a market that is increasingly getting more competitive, margins are getting smaller and added value lower.

Therefore, we need to do all we can to secure the added value, and that means we need to get more direct access to the end markets! The VIP buyers who will be participating in this edition of the IJS have been carefully researched and selected. This model has proven to be very successful, both for the buyers and our exhibitors!"

GOLDEN GLOBES WITH ITS ALL ELEGANCY This year's 76th Golden Globe award ceremony brought together the most famous names of the television world. The event, hosted by Sandra Oh and Andy Samberg, doubled the Beverly Hills' splendour on 7th of January. As it does every year, The red carpet and the stage witnessed the most elegant moments of celebrities. And once again we realized that how small touches can change the whole picture.

Jessica Chastain Chastain's Burberry dress was accompanied by colorful earrings surrounded by pink sapphires, spinels and spessartites. This piece, which carries joy of summer to winter, is from the Sunny Side of Life collection of Piaget and is called â&#x20AC;&#x153;Limelight.â&#x20AC;? 88

Amy Adams

Nominated as The Best Supporting Actress , Amy Adams made a special appearance with her custom-designed long-tailed blue Calvin Klein dress and remarkable Cartier jewellery.

Soairse Ronan

All of Ronan's accessories were by Chopard; diamond ring from the ‘L’Heure Du Diamant Collection’. Her 34-carat emerald earring almost competed with the Gucci dress.

Charlize Theron

Charlize Theron's accessories were Bulgari. Theron also kept wearing the symbol piece of Times’up movement campaign that was launched among women. The rings were from the new Bulgari collection Fiorever and the black and white dress by Christion Dior.

Lady Gaga

Lady Gaga received “The Best Original Song Award” with her song “Shallow” from the album A Star is Born. Gaga was seen in Tiffany jewels. That piece is part of the Aurora collection featuring over 300 stones and was specially designed for this special day. A blue Valentino dress completed this look. 89

ROBERTO COIN PRESENTS SAUVAGE PRIVÉ

he latest addition to the R ob er to Coin jewelry is the Sauvage Prive. It is a new narration of Roberto Coin on his vision for women beyond the present. The New Design Concept of Roberto Coin’s Sauvage Prive The jewels come with opposing silhouettes, which act as a connecting link, anchoring them to Roberto Coin’s inspiration concept: two distinct parts, two elements, which are united by an unseen bond. This new design concept evokes harmony while leaving room for some creativity of a rebellious nature. The concept is made possible by the use of two looks, 90

one more geometric and seeming conforming while the other is exuberant. The collection is able to achieve both a rebellious and harmonious feel in a way that only Roberto Coin could. Bold, Decisive Design This latest collection is more decisive than any that has come before it. It has been designed with the aim of getting rid of any superfluous elements that might interfere with the elegance of the brand. This collection is able to present a harmonious mixture of mindfulness and passion just the vision Roberto Coin has for the woman of tomorrow.

oucheron introduces Hiver Impérial, a new collection of High Jewelry inspired by the aura of the Far East’s vast stretches of snow covered land.

When Boucheron opened a shop in Moscow in 1897, it was the first French jeweler in the city. Its history is therefore closely tied to Imperial Russia, its Slavic heritage and

endless expanses. Boucheron brings you three main themes from these regions: Nature, Couture and Architecture. A 78.33-carat Santa Maria aquamarine is the star of Boucheron’s Hiver Impérial Baïkal necklace, which was chosen because it resembles the colour of the crystal-clear waters of Lake Baïkal in Siberia (POA)

The Queen of Kalahari An Ultra-Rare 342-CARAT DIAMOND

he story of this stone is a journey. A journey through what makes Chopard so very singular and special, its artistic vivacity and technical virtuosity. It conveys the importance the Geneva-based Maison attaches to mastering all stages governing the creation of a piece of jewellery. At the helm of these endeavours, co-president Caroline Scheufele has consistently provided the impetus designed to guide Chopard towards pursuing excellence and exploring new territory. It is she that has followed the adventures of this extraordinary diamond step by step in the quest to ensure its lasting destiny. The discovery of The Queen of Kalahari, this exceptional 342-carat stone of perfect colour and absolute purity, has given rise to a set of 23 diamonds – The Garden of Kalahari – of which five weigh over 20 carats. Drawing upon the virtuosity cultivated in the field of artistic craft that has forged Chopard’s reputation, six fabulous pieces of jewellery have emerged from the High Jewellery workshops of the

ome 2,400 industry professionals attended the first day of the specialized diamond trade fair, CARAT+, opened ceremoniously by model and actress Elizabeth Hurley in Antwerp, followed by a surprise parade of vintage cars crusing through the show. The number of visitors easily surpassed expectations for only the second edition of the trade show, the organizers said. It will provide a welcome boost to the Antwerp diamond industry during sluggish trading period, and the Bonas Polished Diamond Tender during the show, featuring 163 lots with a total weight of more than 1,700 carats, should raise the trading profile of the event.

Elizabeth Hurley wore Cascade collection jewels by CARAT+ exhibitor Roberto Coin, and was led on a guided tour of the show floor after cutting the ceremonial ribbon, visiting leading exhibitors and discovering some of the most exceptional diamonds, fancy color diamonds and colored gemstones on display. CARAT+ Event Director Filip Van Laere said: “The second edition of CARAT+ has so far been a phenomenal success and I look forward to seeing how the rest of our show progresses. I would like to thank the wonderful Elizabeth Hurley, all our exhibitors, visitors, special guests and team members who made CARAT+ Night the talk of Antwerp and the entire diamond sector.”

ALROSA and AWDC Signed a new cooperation agreement ALROSA, the world leader in diamond mining, and Antwerp World Diamond Centre (AWDC) signed a new extended cooperation agreement in Moscow. The agreement continues positive cooperation experience between the parties and expands bilateral interaction in line with new challenges of the market. ALROSA CEO Sergey Ivanov and AWDС CEO Ari Epstein signed the new agreement. The official ceremony was held in the presence of Bart de Wever, Mayor of Antwerp, and Jean-Arthur Regibeau, Ambassador of the Kingdom of Belgium to Russia. The aim of the three-year agreement is to improve the scope and efficiency of ties between ALROSA and AWDC. Among other things, it assumes that the companies will keep exchanging information on the diamond market. The parties also agreed on joint promotion of marketing initiatives, including generic marketing to maintain the value of diamonds as a category and stimulate consumer demand. AWDC will support the efforts of ALROSA that are done together with other members of the Diamond Producers Association (DPA). ALROSA and AWDC will likewise support each other in promoting their own initiatives. ALROSA and AWDC will pay great attention to the problem of illegal penetration of

synthetic stones into the trade of rough and polished diamonds. The parties agreed to jointly promote and protect the procedure of differentiation in rough diamonds and synthetic stones, including support of industry initiatives. AWDC will also allow for comprehensive check-ups and support the promotion of detection devices for synthetic stones, including Diamond Inspector, the technology developed by ALROSA. The parties will also continue close collaboration within the World Diamond Council (WDC) to complete the reform of the WDC’s System of Warranties, and supporting the WDC as an industry representative in the Kimberley Process. “Belgium is the world’s largest diamond trading center and ALROSA’s largest trade partner. In 2017 alone, ALROSA supplied rough diamonds worth over USD 2 billion to companies in Belgium. ALROSA has 55 long-term clients who buy gem-quality rough diamonds, and 21 of them are companies from Belgium. That is why we are interested in the cooperation with this market and its

industry organizations. AWDC is ALROSA’s long-standing and reliable partner with vast experience, and I am confident that the new agreement will allow us to further strengthen our cooperation and aim our joint efforts at the development of the industry,” said ALROSA CEO Sergey Ivanov. “ALROSA and AWDC have been working together for more than 15 years. ALROSA today is the world’s largest rough diamond supplier, accounting for 31% of diamond trade in Antwerp by volume and 21% by value. We set a high value on the existing collaborative experience with the Russian party and with ALROSA, and we will strive to further strengthen our cooperation and work together for the development of diamond markets in Russia and Belgium,” said AWDC CEO Ari Epstein.

L.U.C XP URUSHI YEAR OF THE DOG ARTISTIC CRAFTS SHARE UNIQUE PERSPECTIVES

he elegance, the refinement and the technical nature of the ultra-thin L.U.C XP Urushi watch have made it a cult model. Each year, Chopard draws inspiration from the repertoire of Chinese astrology to offer a fresh

interpretation of its Urushi dial, an ancestral Japanese technique. Staging an encounter between beauty and precision, East and West, Chopard places creativity at the heart of cultural ties and of its commitment to perpetuating traditions.

Secret WonderÂ byÂ Harry Winston, Reversible Diamond, Sapphire and Aquamarine Earrings

eversible starburst drops bring an enchanting and unexpected touch to an extraordinary pair of earrings. The versatile design features a brilliant medley of round and pear shaped diamonds on one side, and rotates to reveal a colorful array of sapphires, diamonds, and aquamarines

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hidden on the other side. 18 round brilliant sapphires weighing a total of approximately 0.84 carats, 8 pear-shaped aquamarines weighing a total of approximately 0.45 carats, and 438 marquise, pear-shaped and round brilliant diamonds weighing a total of approximately 7.43 carats, set in platinum.

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MUSTAFA KAMAR

Mustafa KAMAR

urkey's jewellery exports increased by 35% in 2018 compared to the previous year, with an increment of 4 billion 410 million 461 thousand and 204 dollars. The biggest share in jewellery export was obtained from unprocessed or semiprocessed gold with a ratio of 48%, while the gold jewellery category and diamond gold jewellery were the second most exported jewellery products with a share of 44%. Jewellery Exporters Association announced the figures for 2018 jewellery exports. According to this, jewellery exports made between January 1, 2018 and December 31, 2018 were occured as 4 billion 410 million 461 thousand and 204 dollars with

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JEWELLERY EXPORT INCREASED BY 35% IN 2018

Chairman of the Board ofJewelery Exporters' Association

an increase of 35% compared to the same period of the previous year. The highest export amount was occured in August with 896 million dollars while the lowest export was obtained in January with 142 million dollars. Mustafa Kamar, Chairman of the Board of Jewelery Exporters' Association, stated in his assessment of the export figures that they were very satisfied with the performance of the sector due to the added value it provided to the country's economy, and said: “If we evaluate the current performance within the framework of our experiences in 2018, jewellery comes up as a strategic sector which is a priority for our country. Turkey is now among the world’s top exporting countries. In a period when the balances are shifting between financial impulses, the increase in jewellery exports and the continuation of the interest in

jewellery allow us to look at the future with hope. We should increase our production capacity with our world-class workmanship quality and intensify our initiatives in order to take place in new markets. In this context, we participate in international jewellery fairs, organize purchasing committees and jewellery design competitions, give oppurtunity to designers to study education abroad and bring experts from abroad to give lectures in our country. We are carrying out studies to strengthen the technical infrastructure of schools in order to improve the quality of our country's jewellery education. We should strengthen our design aspect as a sector, so that we can reach to our targets by completing the design, labor and production capacity. As a country that serves as a bridge between east and west in terms of the geography we are in, we believe that we will carry our export potential to higher levels this year.”

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JEWELLERY EXPORT ($)

SWITZERLAND

935 Million

21%

ENGLAND

655 Million

15%

UAE

553 Million

13%

USA

289 Million

HONG KONG

232 Million

GERMANY

178 Million

ISRAEL

123 Million

IRAQ

114 Million

LIBYA

80 Million

BELGIUM

71 Million

COUNTRIES

Largest Export of Jewellery Occured in Unprocessed or Semi-Processed Gold 48% of the total amount of jewellery export came from unprocessed or semi-processed gold and 44% are from diamond gold jewellery category, 3% are from gold jewellery category, 2% are silver jewellery and accessories, 1% of the remaining came from the category of precious and semiprecious stones. The Biggest Export Occured in the European Union The largest share in total exports last year was 28% and the European Union countries reached 1 billion 234 million dollars. European Union Countries with 25% share and 1 billion 94 million dollars in other European countries, 23% share and 1 billion 22 million dollars in Near and Middle East Asia, $441 million in Other Asia, $313 million in North America and North African countries followed that with 155 million dollars. Compared to the previous year, jewellery export made on the basis of country groups in 2018 were 164% in European Union, 565% in Other Europe, 104% in Other Asia, 16% in North America and 83% in North Africa. Exports to Middle East Asia decreased by 49%. Export Share of Switzerland is 21% In 2018, the country with the highest number of jewellery export became Switzerland with 935 million dollars. The top 10 countries with the highest share in total exports are as follows;

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Turkish jewellery sector’s production centre as well as being one of the most important production centres in the world. Kuyumcukent now also becoming marketing centres. Kuyumcukent and İstanbul Vizyon Park house more than 1,200 producers and 20,000 workers.

he Turkish jewellery sector started taking off in the 1980s and shortly afterwards increased its producer count. Years ago, production was done by small ateliers, or workshops, at the Grand Bazaar in the historical peninsula and around the surrounding area which created a need for a modern production facility parallel with the sector’s growth. To solve this problem, the Kuyumcukent project was established which became today’s giant that houses 1,000 of nearly 4,000 producers in the sector. After understanding that Kuyumcukent was becoming unable to meet increasing needs, the Vizyon Park project was established and the two parks became the most important production centres in the world, housing over 1,200 production facilities and 20,000 employees.

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One of the largest jewellery production complexes in the world

of buying offices.

Kuyumcukent is packed with hundreds of different size companies that produce gold, silver, and diamond jewellery, as well as refineries, precious stone suppliers, machines and equipment, software programmers. The ability to supply everything under one roof is a huge advantage.

Kuyumcukent has seven giant factories as well as many producers of different sizes. With the development of the İstanbul Vizyon Park project, companies that need larger space are showing a strong interest in this complex.

Foreigners launching companies After the recent positive developments in the Turkish jewellery sector, especially regarding the lowering of taxes, the sector is seeing the strength of the advantages it offers. There is a perfect base for international companies as well. A large number of companies have launched activities in Turkey. Many are based in the Kuyumcukent complex, with a large number

Increasing interest in İstanbul Vizyon Park

What makes Vizypn Park so special? The buildings have been built using cutting-edge construction tecnology, and are equipped with secure automation systems. They are It is spread over a total of 180,000 sq m, of which 128,000 sq m, the first stage, was completed in 2005 and is called Goldencity, which consists of two independent blocks: workshops and a shopping mall block. Goldencity is built in accordance with European Union norms.

Multipurpose smart offices are also suitable for production offices, and there are spacious relaxation areas, a hotel and a convention centre. In the second stage project of Goldencity, there will be total construction of 500,000 sq m of new workshops, office buildings. A 6,000 sqm parking lot was completed in 2012. The İstanbul Vision Park houses companies such as the Turkish Central Bank Group Centre. the National Banks Group Centre, the Turkish Central Bank Swap and Storage Center and the Mint Accounting Office. In addition, a five-star hotel and a project consisting of two separate blocks for the Stock Exchange İstanbul Gold Storage Center and Diamond Exchange are also among Goldencity's projects.

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WE OWN THE LARGEST MOUNTING COLLECTION OF THE WORLD 108

Increasing jewelry demand will also affect the demand for jewelry mounting category. That’s why the jewelry industry is following closely Turkey, the world’s largest mounting manufacturer. Following the reforms, many companies over the world have begun to carry out every step of the gems production in Turkey.

orld giant De Beers has announced that it will start selling diamonds developed in the laboratory environment. LG Diamond, to be sold under the Lightbox brand, will be sold at a price of 800 USD per carat. The decision of De Beers caused discussions in the world jewelry industry. When evaluating the generalities of these discussions, the following conclusion arises: De Beers’ marketing efforts in this area will increase jewelry demand in the medium and long term. The increase in demand in this category is expected to affect different areas of activity in the jewelry industry. The montage

category is the leading one. While this strategy of De Beers continues to be discussed in the world jewelry industry, the industry focuses on the montage category. One of the countries that benefit most from these developments is likely to be Turkey. Turkey is the world’s largest producer of diamonds mounted in position. South Korea ranks second following Turkey. Mr. Mustafa Kamar, President of Jewelry Exporters’ Association, said that they anticipate that these developments will create significant momentum in the world jewelry industry. “Turkey is the world’s largest diamond producer in the mounted position. At the same time the world’s richest

stocks of ready assembled in Turkey. For many years, our expertise in this area continues to produce extremely rich designs. Many jewelry manufacturers in the world purchase mounting from Turkey. Each production phase carried out in Turkey Important structural reforms have been carried out in Turkey in recent years. The Diamond Exchange was founded and actively started to operate. Tax rates have been set to zero. You do not pay any tax if you bring stones to Turkey and mount there and export in the form of diamond jewelry. Turkey does not only hold advantages in mounting, but also in each phase of the production of diamond

jewelry. Every process such as installation, polishing and certification takes place in Istanbul. Many companies see the advantages of this world began to build the Diamond jewelery production in Turkey. Diamond market will grow by being divided after this step of De Beers. On the one hand, the position of the natural diamonds in the market will rise, and on the other side, the demands of the LG diamonds will also increase. As a result, the demand for mounting will also increase. At this point, I want to emphasize the advantages of Turkey in mounting category and invite jewelry companies to Turkey.

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The effects of the reforms is noticeable through the interest shown by the foreign companies. Whether it being Istanbul, Las Vegas, Vicenza, Dubai and other countries, Turkish mounting companies are receiving more and more attention every fair.

So what kind of advantages Turkey has! Istanbul Precious Stones Exchange Was Founded Just like centers of jewelry industry Antwerp and Tel Aviv, precious stone exchange was put into action in Istanbul as well. Many companies in precious stones got included in the exchange . Company number and volume of transactions are increasing every day. Private Consumption Tax was Zeroed Precious Stone Exchange member companies are excluded from Private Consumption Tax. With this they are also excluded from taxes in precious stone exchanges. Foundation of Foreign Companies is Easier With the changes done in Turkish Trade Law it is now fairly easy for foreigners to found a company in Turkey.

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One of world’s largest gold production complexes, Kuyumcukent’s foreign company number is exceeding 100. Dubai Tax Policy Change The change in Dubai’s tax policy opened up Turkey’s chance to become a center in global gold and precious stone market. This is why many companies are turning to Istanbul. A lot of the trade done in surrounding countries is slowly flowing through Istanbul. All these things are key factors for development of the gold and diamond jewelry groups. The effects of the reforms is noticeable through the interest shown by the foreign companies. Whether it being Istanbul, Las Vegas, Vicenza, Dubai and other countries, Turkish mounting companies are receiving more and more attention every fair. Turkish companies are very satisfied with this activity.

Gürkan Merim / Model Mounting We have been manufacturing diamond studs for many years in our factory. We are the one of Turkey’s oldest firms in this area. Our factory is performing every phase of diamond jewelry production and delivering our products to both Turkey and all over the world with HRD Antwerp certificate. Mustafa Akın / Sade Is We are a company focused on the category of montage. Sade Is is one of the most established companies in this area. We are closely following the world jewelry trends. We can respond to almost every kind of design. In our factory, we manufacture montage at the highest standards. We export a very important part of our production. We are cooperating with jewelers around the world.

Barış Lek / Sina Mounting Turkey diamond is the leader in the world in mounting category. We observe this situation in many foreign trade fairs that we participate. We have very large mounting stocks. Turkey has thousands of years of experience in the jewelry field. Expert and valuable masters work hard in our factories. Ömer Faruk Cağlar / Somoro Turkey continues to grow rapidly in the mounting category. We are ahead of South Korea which ranks after us. We continue to evolve thanks to tax reforms in our country. The establishment of the Diamond Exchange also affected us positively. No more taxes are paid for precious stones from abroad. There is no tax when the precious stones are assembled in our country and exported as jewels. Thus, many foreign companies now produce diamonds in our country.

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3 Simple Steps for a More Successful JCK Las Vegas 2019 It’s JCK Las Vegas time! Never mind that the actual event takes place more than three months from now—when it comes to planning, it’s go time.

s an exhibitor at the show, you’ve got a lot to handle: display cases, sprucing up your exhibit space, preparing your team for the event, making sure you have enough business cards and press material to distribute. And that’s on top of deciding what you’re going to display (some of you are probably in the midst of designing new creations), not to mention how you’re going to get retailers to check out those offerings at show time. Don’t let your to-do list overwhelm you. Try these three smart strategies— including an exciting opportunity from JCK—to streamline planning and boost traffic to your booth once it’s all set up.

. Get social. Not only is social media an essential tool in your arsenal these days, but it’s also completely free (unless you opt to advertise, but for now, we’ll keep things basic). Working on an amazing new design? Tease it on your Instagram, Facebook and Twitter accounts. Tag your favorite retailers—ones you know will visit your booth, as well as those you hope to see at the show. Give them a sneak preview of what you’re working on to pique their curiosity and build excitement. Use the hashtag

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#JCKBound to start the conversation early, and let them know you’ve got some fabulous finds they won’t want to miss.

. Spread the word. An email list is fantastic for sharing your upcoming features at the show, but remember that attendees will be getting a lot of emails before they jet off to Vegas. This should be just one way to spread awareness. Use it sparingly. (It’s no fun getting overwhelmed with emails from the same source, is it?) Take advantage of your server list, but don’t overdo it—when you send that mass email, make it spectacularly worthwhile. Cap it with a short, catchy subject line that will stand out in a crowded inbox.

. Meet your match. Here’s what we’re really excited to tell you about: JCK Match. This free service links you up with the right customers for your product so you can build connections and boost your business. It’s easy and it’s effective, so there’s no reason not to sign up. (Did we mention it’s free?) Here’s how it works: When buyers register for JCK ,

they’re asked to answer a series of questions about what products or services they’ll be looking for at the show, along with specifics about their wants and needs. This questionnaire will lead them to their dream exhibitors—potentially you. If it sounds like a dating app, you’re not too far off. Here’s the key, though: JCK Match can’t send buyers your way unless you fill out your own questionnaire first.

Match connections! (JCK offers incentives for retailers to make purchases with their matched vendors at the show.) It’s a great start, and we can do even better. That begins with you! So sign in to your exhibitor dashboard and fill out that profile. You never know who’s waiting on the other side to fall in love with your designs!

Seems like a win-win, right? We think so too. Our goal this year is to have every JCK Las Vegas brand, designer, and supplier complete the questionnaire and make the most of JCK Match technology. Just log in to your exhibitor dashboard, fill out your matchmaking profile by answering five short questions, and you’re in. “Great idea, JCK,” you say, “but how do I know it works?” For the 2017 JCK Las Vegas show, 15,000 preregistered buyers each received at least 10 vendor recommendations. One of them could have been you! Of the buyers surveyed, 86 percent told us the recommendations they got through JCK Match made them aware of brands they had never heard of. The best part: 68 percent of buyers reported doing business with at least one of their JCK

JCK Las Vegas once again return to the Mandalay Bay Resort & Casino

Diamond prices are sliding, and that is a warning sign

uring the past few months, we have witnessed polished diamond prices decline. They are sliding downward at a slow pace, with an occasional small rise before sliding again. So far this year, overall polished diamond prices lost 2.9 percent, according to the Mercury Diamond Global Tracker™ (MDGT™). The majority of the decline took place in the third quarter of the year – 1.3 percent. Moderate price declines are not usually a source of great concern. What should worry the industry are the forces pushing polished diamond prices downward, the long-term trend, and the implications they may have on the industry at large.

Current price drivers A number of market forces are driving prices down. Chief among them is a decline in consumer interest in diamonds. It’s not that consumers in the US, China, India or Japan are less inclined to buy diamonds, although some argue that this is precisely the issue. However, the data we have points to a shift in preferences. Consumers prefer smaller goods. Although we have mentioned this repeatedly in our recently published price analysis reports, it’s worth taking a closer look. Some fashion trends are driven by changing times, events, and retail offerings. Some trends are driven by economic forces. As diamond offerings range the entire diamond gamut, and no major events took place lately to drive changes in jewellery trends, we are left with economic forces. In this case, the high prices of diamonds. Yes, prices have been declining, but that is a response to changes in demand. What we are seeing is that despite the ongoing price decline, the sweet spot has not been found yet. So, while consumers in the American, Chinese, Indian and Japanese markets remain interested in diamonds, they are choosing smaller goods, because that fits their budgets. In the US this is a clear trend; in the rest of the leading diamond consumer markets, it is a little less pronounced, but the strong US dollar against local currencies makes diamond prices even pricier in local currencies, impacting consumer demand. Now, let’s add to that another market dynamic – lab-grown diamonds (LGDs). When the diamond industry hears how the LGD producers and retailers market this item, what worries and angers them most is the claim that

LGD are “the ethical choice.” However, what resonates most for the consumer is a different promise altogether – “same, but costs much less.” Yes, this is an economic choice. Consumers want diamonds at an affordable price. LGDs make good on that promise. When consumers demand lower prices, prices come down. Have no doubt about that. What is worrying about this is that consumers have an easy alternative. LGDs deliver lower prices, and consumers, little by little, are buying into it. With diamonds being pricey and the diamond industry failing to explain to consumers why prices are as they are, consumers are being pushed straight into the open and awaiting arms of lab grown. Yes, the long-term outcome may be that the diamond industry is actively driving consumers away. This outcome does not need to be a must. First, polished diamond prices will continue to decline if consumer interest is for lower cost diamonds (or abandon diamonds for the alternative). Second, the diamond industry is failing to create marketing that enhances and elevates diamonds. Diamonds are considered a luxury item in popular culture, but when it gets to economics, the reality is that most diamonds are not bought as a luxury item. In most places, they are not sold as an exclusive luxury item. Therefore, it is no wonder that consumers do not understand why diamonds are priced so high.

jewelry industry must act to make happen. We should all contribute to this effort, because it will impact each and every one of us. If you need inspiration, look no further than how high-end diamonds are sold. Large, D/flawless and fancy colour diamonds are sold precisely as outlined here. And because of that, they sell well, meaning they generate nice margins. More importantly, not only are they sold as unique and special items, they are also bought as unique and special items. And buyers than cherish these purchases. They not only invest from a financial stand point but make an emotional investment as well. And that is the kind of consumer we need. The question that must be posed to us all is this: What kind of future do we want, one where we squabble for rough diamonds and then sell diamonds like mass consumer products with no standing and suffer from thin margins in return? Or do we want to buy rough with confidence, and then sell an exclusive product with an uplifting experience and reap the rewards in the form of handsome margins? That is the choice ahead of us. The views expressed here are solely those of the author in his private capacity. No one should act upon any opinion or information in this website without consulting a professional qualified adviser.

If marketing elevated diamonds as a truly luxurious item, and stores sold them as being very rare and unique, consumers would hear that they are buying something very special. This is what all of us in the diamond and 113

Americans Do Not Consider Diamonds Created in a Factory to Be Real Diamonds

New National Survey Shows Consumers Recognize Only Natural Diamonds as the Real Deal New survey results released by the Diamond Producers Association (DPA) and The Harris Poll demonstrate that a clear majority of American consumers recognize that diamonds created in a factory (also known as “synthetic” or “laboratorygrown”) are not “real” diamonds.

significant majority saying synthetic diamonds are not real because they are not “natural,” nor “from tahe earth,” or because they are made by man.

Nearly seven in 10 (68 percent) of survey respondents made such a distinction, with a

“Diamonds are billionyear-old treasures of the Earth that came to us very, very slowly, which makes

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Just 16 percent of respondents consider laboratory-grown diamonds to be real diamonds.

them uniquely meaningful in today’s on-demand world,” said DPA Chief Executive Officer JeanMarc Lieberherr. “At a time when everything ‘artificial’ aims to compete with, and replace, ‘natural’ and ‘real,’ these results show consumers care about the inherent value, authenticity and symbolism that a diamond carries.” Consumers described diamonds as “genuine,” “natural” and “authentic.”

They called laboratorygrown diamonds “manmade,” “artificial” and “imitation.” “Each natural diamond possesses a fingerprint that is tens of millions of years in the making,” Mr. Lieberherr said. “As consumers across generations have demonstrated, and this research confirms, ‘Real Matters.’ The emotion and heritage carried by natural diamonds cannot be

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“REAL” RESEARCH

Genuine, Natural, and Authentic Readily Associated With “Real” Diamonds No confusion of “natural”, “unique”, or “rare” with diamonds that are not real.

A real diamond is… Genuine Natural Authentic Unique Special Rare Original Organic Cultivated Cultured Wild Man-made Factory-made Simulated Fabricated Reproduction Artificial Synthetic Imitation Substitute

12% 9% 8% 7% 5% 3% 2% 2% 2% 2% 2% 1% 1%

A diamond that is not real is…

40% 37% 37% 35% 31%

48% 45%

Man-made Artificial Imitation Synthetic Fabricated Factory-made Substitute Reproduction Simulated Cultivated Cultured Organic Genuine Authentic Unique Natural Special Original Wild Rare

32% 31% 31%

5% 5%

53% 50% 46% 45% 42% 42%

1% 1% <1% <1% <1% <1% <1% <1%

BASE: U.S. ADULTS (n=2011) Q6 Now please think about diamonds. Which descriptive words best complete this sentence? Please select all that apply. A real diamond is… Q7 And how would you complete this sentence? Please select all that apply. A diamond that is not real is…

replicated in a factory.”

Laboratory-grown diamonds are produced in two to three weeks in a factory environment. The differences between natural diamonds and laboratorygrown diamonds go well beyond their origin. Their inclusions and growth structures carry the marks of their very different birth

process, which is how they are easily recognizable using specialist equipment. Laboratory-grown diamonds and real diamonds also carry very different emotional and monetary value. Natural diamonds are inherently rare and valuable, whereas laboratory grown diamonds are produced rapidly and at scale, limiting their value and negating resale value.

Conducted May 3-7, the DPA-Harris Interactive poll surveyed a nationally representative sample of 2,000 people. The new survey adds to a body of credible and statistically significant surveys conducted in the past year by DPA. This research underpins DPA’s goals of better understanding consumers’ knowledge and

preferences and of fostering transparency within the marketplace about the differences between natural diamonds, laboratory-grown diamonds and other forms of imitation diamonds.

CMY

“REAL” RESEARCH

Minority Who Consider Factory-Made Real Mention Production Process and Properties as Key Reasons However, over one-quarter (27%) of adults who say a factory-made diamond is real have difficulty articulating exactly why.

They have the same chemical make up as natural diamonds.

Why do you consider factory-made real? Among those who say factory-made is real

Are factory created diamonds real diamonds?

45%

Similar Properties/Process (NET) 15%

Process/Made the same way Similar properties of natural diamond

Not sure, 16%

13% 13%

Chemical properties Physical properties

Yes, 16% No, 68%

Carbon compounds

5% 4%

They are compressed carbon, like real diamonds 27%

Product Impressions (NET) 15%

Looks real / I think they are real 9%

Other they are real mentions Good/Like it

If they have the same physical and chemical properties and are formed under pressure like diamonds in the earth they are real diamonds. If you can’t tell the difference then they must be real diamonds.

Look the same

Just look real.

Because it has the same beauty. It shines like a real one.

Note: Subset of codes shown BASE: U.S. ADULTS (n=2011) Q8 Factories exist where, over the course of two weeks, diamonds are created that have the same physical and chemical properties as a natural diamond. Do you consider this type of diamond to be a real diamond? BASE: FACTORY MADE IS REAL (n=304) Q9 Why do you consider factory-made diamonds real? Harris Insights & Analytics, A Stagwell LLC Company © 2018

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