{{Exclusive Interview of Dehres Supremo}} On a recent visit to Hong Kong for reporting the latest double venue gems & jewellery show there, our representative came across the firm DEHRES Ltd. that has earned name and fame throughout the world of diamonds by its unique, transparent trade policies as well as superlative goods. In an important meeting with the dynamic Managing Director Ephraim Zion, this exclusive interview evoked his free and frank elucidation that revealed why they have been going up and up the ladder even in these downtrend times. E.Zion was eloquent during this dialogue and disarmingly communicative.

%%{{DEHRES LTD. Hongkong }}– Going From Strength to Strength%%Dehres, a family-owned company of three generations , is known worldwide for cutting and dealing in some of the most important diamonds of the world, including the recutting of the 69 carats Burton-Taylor Diamond and the 64 carats matching “Pair of Faith”.%%Dehres is renowned for manufacturing exceptional masterpieces, ranging from classical and contemporary designs to custom-made pieces of jewellery. Its customers include some of the most recognized brands, as well as Royalty, Heads of States, celebrities and public figures alike.%%Dehres’ main aim is to continue supplying its collection to its existing clientele worldwide and to enter into new partnerships in an effort to build long term relationships with prestigious retailers, wholesalers and leading brands. Dehres welcomes such clients to explore opportunities of working together.

%%{{Diamond World : }}When your company was established in Hong Kong, 80% of your business was derived from trading diamonds. Today, more than 50% of your company’ turnover comes from your line of Hong Kong manufactured jewellery. Could you enlighten our readers about some of your high points during this successful journey?%%E.Zion : It all started in 1980 – 81 when the diamond speculative bubble burst and we entered into a severe recession. It was very difficult to sell diamonds because of the falling prices and we had to think about a creative way of selling them at optimum prices. As inventories were climbing we took a decision to create classic jewellery consisting mainly of larger pieces of carat size and up. We had thus created two important diamond necklaces, one of which we named “Imperial Necklace”. When it was finished it came out so beautiful and I got so excited that I immediately took it to one of our local major jewellers who also fell in love with it immediately. He just happened to have an important client in the shop and he asked my permission to show it to her. Of course, I did not object and within 15 minutes, the necklace was sold for US$700,000 to the lady. From then on we have plunged into jewellery production and the rest is history.%%D.W: Could you elucidate about the positioning of your products considering current global trends?%%E.Zion : Since the 1990s and to a larger extent in the early years of this decade we detected a major development in the previous Communist-Controlled countries of China, Russia and the Eastern block nations of Europe. One of the most important developments in these countries has been a major shift from a centrally-controlled economy to a free market economy that had a tremendous impact on these nations and propelled them into the 21st century with productive and efficient economy. At the same time India too, instituted a series of economic reforms that led to an unprecedented prosperity. All these developments have led to the integration of almost US$2.5 billion people into the world economy, thus encouraging consumption and a desire to own high ticket items like diamonds and jewellery. Against this backdrop, we have been developing certain product lines to cater to these markets. We have had an impressive response from these markets and the results were very rewarding.

D.W: You recently commented, “For diamond lovers, the first step is usually to upgrade to a higher quality white stone and the next alternative is color”. Could you elaborate this concept, please?%%E.Zion : For people who buy diamonds for the 1st or the 2nd time they usually buy 2-3cts round. When they become more affluent and successful in their business, they begin to diversify by buying a 5-6cts. fancy cut diamonds like Pear, Oval, Marquise or Heart shape, depending on their own preference and taste. Next step they upgrade from 5ct. to 7-8ct. or even 10ct. white diamonds, usually in D-G color. When they already have a 8 or 10ct white diamond, they begin to diversify in fancy color, most likely the first color being at least Fancy Pink, Fancy intense Pink or even Fancy Vivid Pink. Then they continue with Blue, Green and Red. %%D.W: You claim that big pieces of jewellery priced from US$40,000 to US$3m. produced by Dehres are unique? Could you tell us what is the exact USP, Please?%%E.Zion : Things that separate us from the others are our unique design, our superior workmanship, the highest standard of quality and our attention to every little detail, making sure that the piece of jewellery that comes out of our production line is up to our standards.

D.W. : How do you assess your European clientele vis-à-vis your Hong Kong clientele?%%E-Zion : Americans and Europeans have a certain budget when they buy; hence they are not flexible enough in their buying. They can compromise on quality but won’t change their budget for a higher quality. On the other hand, Asians appreciate the quality and color and they are willing to go beyond the budgets if the quality and color are higher. Contrary to the Americans and Europeans, Asians consider high quality diamond as a stone of value, an investment vehicle, security and as a sentimental value and precious gift for the future generations. %%D.W. : A major proportion of your exports go to the south eastern countries. How do you figure it ?%%E.Zion : We are basically selling our products to all the major markets in the world. But our emphasis has always been on the Asian markets. We had identified this market as a tremendous potential for development back in the 60s and early 70s, and therefore we had made a strategic decision in 1971 by moving to Hong Kong and setting up our major selling organization in Asia operating from Hong Kong in order to service the entire Asian market.

%%D.W. : What are your views regarding the growing awareness and the buying patterns of diamond lovers in India ?%%E-Zion : During the last few years, India has been developing as an important and a major consumer of diamonds and jewellery. The beautiful thing about the Indian market is that they use 2-5cts both in commercial quality as well as high quality. They are also important users of larger diamonds especially in the 10-30cts in the medium colors. We have some important Indian buyers that we have been working with over the last few years and we intend to develop our market there even further. We feel that the buying patterns of Indian customers are on the rise, and I can see that in the not too distant future, they will begin to use large pieces in D to F color as well. %%D.W. : What are your plans for future offerings ?%%E.Zion : We are planning to come out with a medium to upper-level line of jewellery for the Asians as well as the Eastern Europe market. We have recently begun to produce medium to high quality precious stones jewellery in Rubies, Emeralds and Sapphires mostly in sets of necklaces, earrings and rings.

%%D.W. : Congrats on your recent appointment as a member of the Board of Governors at GIA! What would be your prime tasks there and the agenda?%%One of the main tasks would be to increase co-operation between us and members of the trade and reaching a better understanding regarding diamond grading system. In addition, our task will be to enhance the educational efforts in various parts of the world and to bring about a better awareness about the important GIA activities in the trade.%%D.W. : And please your message to the precious world through the Diamond World.%%E.Zion : I believe we are going through a period of consolidation in our business which is characterized by a temporary weak demand and anxiety regarding the economic environment that we are entering into. The credit crunch which we are now experiencing in the financial markets and the economy is very serious and, therefore, can have wide ranging repercussions. I think this is a time of great caution, restraint, but also a time of great opportunities. My hope is that part of the public that had lost faith in the banking system and who would not like to park their money there, would begin to look at diamonds at least as a store of value and a stable commodity that preserve their capital. Perhaps it would be a good time for some investors to consider diversifying into diamonds; at least now more than ever, diamonds really are “forever!”