Jury Still Out on Baselworld

RAPAPORT... Gem and jewelry exhibitors gave mixed responses tochanges at the struggling Baselworld show, with many stillundecided as to whether they would return to the trade fair.Visitor traffic was relatively light throughout thesix-day event, which ends Tuesday, with Saturday and Sunday seeing the strongest activity.Attendance was so sparse in the gem halls that someexhibitors tried to poach buyers from competitors' booths, observed BrunoScarselli, who specializes in rare fancy-colored diamonds."Twice, competitors tried to lure customers out of ourbooth," he said. "Every time two or three buyers come, a frenzy starts. It's avery ugly scene when that happens."Theexperience was more positive for others, with some noting that theirperformance largely depended on the products theysell and the efforts to arrange appointments prior to the show.Oded Mansori of Rare Diamond House in Antwerp, asupplier of rare white and fancy-colored diamonds that start at $1 million, sawboth regular customers and new ones at the show. Most visitors to his booth werelarge jewelry brands that were also exhibiting at the fair."I'm very happy with this show," Mansori said. "Thefoot traffic is much less, but you can't just come to the show and expectsales. There's a lot of preparation work and follow-up that need to be done."Eden Rachminov of Rachminov Diamonds, another high-endsupplier of fancy-colored diamonds, added that his appointments were good, withpeople generally buying in the lower and higher price ranges. Most sales were either priced between $10,000 and $30,000 or$2 million and $5 million, he noted, while turnover was sluggish for products inthe $200,000 to $700,000 range.Mansori and Rachminov said they were staying at theshow, while Scarselli said he was likely to return next year, despite hisreservations.A matterof costOrganizers are attempting to recover from the recentmass exodus and last year's downsizing, which saw the number of exhibitors dropfrom 1,500 two years ago to between 500 and 600 this year. The show's newmanagement responded with a redesigned floor layout, additional restaurants,and a revamped lineup of special events to help boost traffic.But exhibitors were unsure whether those efforts wouldbe enough to bring them back to the Swiss city in the future. Many were waitingfor details of additional changes, including a new pricing model, which MichelLoris-Melikoff, managing director of show organizer MCH Group, referenced atthe show's opening press conference."It costs fivetimes as much as any other show," said Alexander Stufflebeam, president ofPanjshir Valley Emeralds, who will probably attend next year, even though he isuncertain about the show's viability. "I can go to at least three [other] showsfor the price of this show."Unlike less expensive fairs, it's difficult to absorb or justifythe cost of Baselworld when business is bad, he stressed. "The cost of being here runs into six figures, and it'snot $100,000," Scarselli added.Location,location, locationA change in location was another contentious issue for jewelers. Theorganizers closed Hall 2, where jewelers used to exhibit, moving them to Hall1.2 on the third floor of the main building in the Messe Basel complex. To help attract people to the jewelry area, fashion shows wereheld three times a day, featuring jewels from select exhibitors. While most ofthe shows were well attended and helped foot traffic, exhibitors were uncertainwhether that activity trickled through to their booths. Laura Bicego, owner of the Italian gold-jewelry brandNanis, was unhappy with her new booth space behind the round stage where thefashion shows were held. New people had difficulty finding her booth, she said,adding that she managed to gain new clients despite her unfavorable position."I wouldn't say we did extremely well. In the end itwas not bad for us," she observed.Bicego was among those questioning whether to return,noting that other fairs, such as Italy's VicenzaOro and the growing Inhorgenta fairin Munich, Germany, have been much stronger for her and at a far lower cost. Ashift to Hall 1.1, where the larger jewelry and watch brands are located, wouldhelp convince her to exhibit again in 2020.Jewelerstake the stageBaselworld'sorganizers made some effort to appease jewelers who have felt overshadowed bythe larger watch brands that take center stage at the event. For example, theygave Giuseppi Picchiotti, founder of the family-ownedPicchiotti jewelry brand in Valenza, a spot at the opening press conference, wherehe sat alongside the heads of watch companies Chopard and Patek Philippe."In the past years I very cordially pointed out toBaselworld that the location given to the jewelry sector was not nearly assatisfactory compared to the watchmaking sector, and that improvements neededto be made," Picchiotti said.Some were pleased with the new, smaller structure.A longtime outspoken supporter of Baselworld, MichaelHakimian of Yoko London, which specializes in fine pearl jewelry, said the fairwas even better, with the drop in exhibitor numbers making it a more comfortable, cozierevent for the buyers and exhibitors."People can navigate the whole building in a day," he said. "Ihave old clients coming, and I have new customers. I'll be here as long asthere's a fair." Image: Hall 1 at Baselworld 2019. (Baselworld)