Smaller Baselworld reinvents itself

27 Mar 2019

 

BASEL, Switzerland, March 25, 2019 – Baselworld has shrunk this year, but is reinventing itself, as the traditional trade fair business model struggles, David Brough reports.

Exhibitor numbers at Baselworld were sharply down year-on-year with the main focus of the event now on the higher watch and jewellery brands. Many long-time exhibitors, notably Swatch group, have left Baselworld.

Last year in the gems arena a new show GemGenève launched, and its second edition to be held in May will feature a number of gem houses who have left Baselworld.
But Baselworld is fighting back, responding better to buyers’ and exhibitors’ needs, and will retain its stature as a leading international fair, using cutting-edge digital communications to showcase the latest product launches.

The longstanding business model of the trade fair has come under assault from increasing digital retail, and from competition to jewellery and watches from other types of luxury, such as mobile phones and exotic travel and experiences.

“Baselworld is currently undergoing a transformation,” said Hans-Kristian Hoejsgaard, interim CEO of organiser MCH Group, at the news conference at the start of the March 21-26 show.

What we have to do is connect to the digital world and combine the virtual world with real experiences.

Hans-Kristian Hoejsgaard, interim CEO of organiser MCH Group

 

This year’s event is a new beginning

Marco Avenati, president of the exhibitors’ committee

“We all know how important it is to constantly evolve – not only as manufacturers but also as a trade show.”

The scaled-back Baselworld has retained its glamour and branding verve, although it lacked the energy running through previous editions, and footfall appeared to be lighter than in previous years.

Many exhibitors privately expressed loyalty to the show and said they would be back next year.
A re-formulated schedule for April-May 2020, which will see a prolonged series of buying opportunities – SIHH (Salon International de la Haute Horlogerie) followed by Baselworld, GemGenève and the high-value Geneva auctions – will create a convoluted offering for buyers but may eliminate the need for two separate trips to Switzerland.

Some buyers may choose to visit SIHH and Baselworld, while others may go to GemGenève together with the Christie’s and Sotheby’s Geneva jewellery auctions.
Few buyers will attend all four shows, as that would mean spending well over two weeks away from home.

Some of the gem exhibitors, who are this year showcasing their stones at both Baselworld and GemGenève, said they may have to choose between the events next year, while GemGenève may ultimately have the option to hold a November edition alongside the high-value jewellery auctions in Geneva.

The slimmer Baselworld reinforces the rising importance of the Hong Kong shows on the global jewellery trade fair calendar, with much of the buying power in jewellery, gems and watches extending eastwards as economies such as China and India expand.

Many British exhibitors stayed away from Baselworld this year, leaving stalwarts Graff and Yoko London at the helm.
While Graff presented one-off bejewelled masterpieces for some of the world’s wealthiest collectors, Yoko London showed off more affordable combinations of smaller size diamonds with pearls, as well as extraordinary one-offs, featuring Akoya pearls.

A long-time UK exhibitor London Pearl, one of Europe’s largest pearl suppliers, was absent from Baselworld this year, noting the high costs of exhibiting relative to potential returns, and imminent uncertainty over Brexit.

UK jewellery exporters are concerned over risks of hefty VAT liabilities if the UK breaks out of the EU without a deal, said London Pearl’s managing director Daniel Vecht during a visit to Baselworld.

David Brough