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Happy New Year. We would like to express our gratitude for your continued support during the past year. We will continue to respond to the changes of the times, maintain, improve product quality, and fulfill our supply responsibilities. We look forward to your continued support and patronage of our company this year.
We had exhibited at 36th International Jewelry Tokyo, held at Tokyo Big Sight, for 4 days from 15/01/2025 to 18/01/2025．
In today’s world, wars are spreading across the world, populism is on the rise, and free trade is collapsing. In democratic countries, people are increasingly divided, and nationalism is spreading in many countries. Along Trump 2.0 kicks off on the 20th of this month, and it is expected to be a year of intense changes, with the end of globalization that should have enriched the world, the breakdown of international cooperation, protectionist trade and block economy advancing.
President-elect Trump, who will return to the presidency after a four-year, is expected to take a tough stance toward China, including eliminating China’s MFN treatment, phasing out imports of key products from China, blocking U.S. companies from investing in China, and raising tariffs on China to 60%, which will likely reignite the U.S.-China trade conflict. Also, he is threatening to withdraw again from the Paris Agreement, as well as from NATO and the WHO. Furthermore, he has also pledged to end wars and conflicts as soon as possible, and the world in 2025 is likely to be greatly shaken by President-elect Trump’s every move.
The year 2025 will also be a turning point for other major changes. The EV (Electric Vehicle) business, which represents the green bubble, is facing a t difficult phase. The large lithium-ion batteries used in EVs catch fire when subjected to a strong impact, and because their combustion power is so strong that once a fire is burning, it cannot be put out by simply blocking the air; there have been cases of fires occurring during transportation, causing damage to ships. The situation is likely to become even more severe in the future, because infrastructure development has not kept up, there is fierce price-cutting competition with emerging manufacturers, and high tariffs are being imposed in Europe and the United States.
In addition, the global average temperature is increasing every year, and according to the International Labor Organization (ILO), increased heat stress due to global warming is leading to a decline in productivity, which is expected to result in 80 million job losses worldwide by 2030, and global economic losses reaching 2.4 trillion dollars, with many markets likely to be lost. The recent unusual hot summer is likely to be a factor in economic stagnation.
The decline in real estate prices around the world is gradually affecting Japan as well. Although the price of condominiums in Japan is lower than the international standard, but it is still too high for the current annual income level of Japanese citizens. In Tokyo’s 23 wards, real estate prices started to fall, because real estate prices had risen to 13.5 times the average annual income and rising mortgage interest rates have meant that more people are unable to purchase property. The increased number of teleworking has led to higher office vacancy rates, which appears to be starting to affect surrounding land prices. This trend will likely accelerate once Chinese people start selling apartments.
The conventional wisdom is changing with the times. Digitalization has made it possible for individuals to choose among television, newspapers, music, travel, finance, and so on, then forcing changes in the industrial structure. Our industry is also changing dramatically with the times. In Japan, the market is declining due to the aging of end users, and overseas, the Chinese market is shrinking due to the slowdown of the Chinese economy.
It seems that the jewelry industry also needs to respond to the changing times. Perhaps the time has come to give up on outdated business models that offer no growth prospects. The era has changed dramatically and our industry been changing also. The jewelry show, which was held under such circumstances, is the largest of its kind in Japan and will serve as a guideline for the industry in the future.
As expected, the number of Japanese retailers, wholesalers and Chinese buyers seemed to be smaller than before. Currently, sales of jewelry are very severe and it does not seem to be an atmosphere for new purchases. Some customers said that merchandise they had previously purchased was not selling as well as expected, and that they were facing financial difficulties to make new purchases. It seemed like this jewelry show was a stark reminder which express the harshness of the current situation.
This situation has had an impact on the prices of various products. Diamond prices usually tend to rise at the beginning of the year, but this time they have fallen, and many said that they would continue to fall. Pearl prices have also fallen significantly from their peak a few years ago, raising concerns about their future. In addition, color stones price, which had been driven by the Chinese market, have begun to decline, especially in the high-priced range, due to the economic slowdown in China.
Also, the jewelry show itself has lost the glamour of the past due to the reduction of ceremonies, events and decorations. Many of the visitors commented that the sense of excitement was disappeared, that it was no longer possible to purchase gorgeous products, and that there were fewer booths that were fun to look at. Due to rising costs and the economic slowdown, exhibiting companies are being forced to cut booth costs and switch to actual sales, so this situation may continue for some time to come for future jewelry shows.
However, it was a jewelry show with a new momentum. From the first day to the last day, there were many visitors, including overseas buyers from ASEAN countries and those from different industries. The products being purchased also seemed a little different from that of Chinese buyers and from the merchandise previously sold to the Japanese market. As the times change, the buyers, and products what customers need are changing. I felt it was a jewelry show that there was still a demand for the industry itself.
This year is also likely to be a year of great change. We will strive to make this a year in which we can quickly grasp future changes and needs and deliver them to you. We would like to thank everyone who came to this year’s jewelry show for making it a great success. We would like to express our sincere appreciation to all of you who came to our booth. Thank you very much and see you all at the next exhibition.
