International, Arab clients are key to Lebanon’s growing jewelry industry, which brings in more than $400 million in export earnings a year

Tania Tavoukjian
Special to The Daily Star
 
They say that diamonds are a girl’s best friend, but in Lebanon’s case “diamonds are the economy’s best friend.” Arab consumers’ desire to spend their hard-earned dollars on precious stones over the past year has propelled the Lebanese jewelry industry to new heights.
Exports in jewelry in the first 11 months of  2003 reached $401 million, accounting for a third of total exports, and ranking it the number-one export item, according to customs figures.
Some of those responsible for boosting Lebanon’s jewelry exports showcase their products at the Beirut Haute Joaillerie Fair, held at the Phoenicia Intercontinental Hotel on Thursday.
The professional fair for designers, traders and manufacturers, organized by Promoteam, will run for five days concurrently with the Beirut Decorative Arts & Antiques Fair, as part of Lebanon’s shopping and tourism festival that will kick off in February.
The exhibition groups over 30 top-notch Lebanese and foreign creators of eccentric and costume jewelry, and is expected to attract over 10,000 visitors, according to organizers.
“The future of this industry has potential and looks bright,” explained the owner of Chatila Jewelry, Nicolas Chatila.
Chatila, who re-entered the Lebanese market only six months ago after retailing in New York since 1975, said, “It would be a shame not to
have a foot here.”
According to exhibitors at the fair, the industry’s sales and profit figures grew in 2003, a year marked by cautious consumer spending under the specter of potential terror attacks, an impending war on Iraq and frequent reports of a weak economy. The growth demonstrated the resiliency of consumers.
Jewelers said the growth in the industry shows the dichotomy between consumers who go about living their lives and politicians and economists who promote the belief that the economy is in a mess.
“We have had very good feedback,” said Carla Yessayan,  co-owner of Yessayan, “with minor temporary setbacks due to the uncertainties in the region.”
Fortunately for jewelers, the majority of people didn’t see it that way, and their actions spoke louder than most consumer confidence numbers would have suggested.
“Despite these trivial setbacks, our overall business has increased, especially since we depend on international and Arab clients,” Yessayan added, explaining that some 80 percent of their sales come from exports and only 10 percent of their clients are from Lebanon.
Participants explained that many segments of the jewelry industry and specific companies within those segments produced solid and profitable growth last year, and their prospects for this year and beyond are favorable ­ thanks to Arab consumers.
Nevertheless, success doesn’t come on its own, which is why jewelers here are continuously introducing new designs to keep up with fashion and tastes, not to mention international competition.
The Bonja Group, for example, which specializes in watches, is currently releasing its latest creation, called “Os-Bone.” The brand, which will start with watches, followed by other luxury items such as glasses, is Bonja’s way of competing with foreign countries.
Some 98 percent of Bonja’s business comes from exports, and despite the 7 percent increase in sales from 2002 to 2003, chairman Anthony Bonja admits that the jewelry industry must be more concentrated.
“This industry is popular in places like Geneva, London and New York. We need to have a chance to bring it closer to Lebanon, but with international tension between our neighbors and Americans, we still need some time to gain that confidence,” Bonja said.
But in the meantime, Bonja believes that “the government needs to adjust some regulations on imports,” so as to make it easier on the local industry to compete with foreign markets.
Other participants also gave their opinion on how this industry could improve. “We have approached the government many times requesting them to introduce training courses in this field,” said Mona Sabounji, Nsouli’s public relations manager. “We need to attract the younger generation.”