For the past 30 years, Jewellery auction market has developed from approximately $50 million to $1 billion yearly. The expansion of global wealth and price speculation for gems and jewellery led to record figures at auctions. The auction market has seen its fair share of growth in the recent years and expert reports a CAGR (Compound Annual Growth Rate) accelerating at 7% minimum during the period of 2018-2022.
Whilst the global economy remains bleak because of the coronavirus pandemic, hidden within are the many up and coming players determined to explore ways of maintaining trade in the downturn. The landscape has shifted somewhat but albeit the speed in which the industry is transforming is still picking up speed. By transformation it is apparent that many has pursued relentlessly on shifting from offline physical auctions to online auctions.
One such successful example reveals JV Auction, a multifaceted technological firm, founded with a focus on bringing value to the mass markets through the use of unique technologies and a global collaborative economy concept. Apart from conducting its business mainly on online auction to pre-identified clients, JV Auction introduces an opportunity for its community to fund the acquisition of various assets and obtain a percentage of the returns after every auction.
The market dynamics is ever changing, more so with the current geographical situation and the lockdown of many countries all over the world. The growth enablers of the auction world are fuelled by coming out with products that can gain popularity, the evolving of the new wealth and say art appreciation. Many auction houses still face this issue especially in these trying times.
At this stage, many fell back to typical mainstream products that ranged from diamond earrings to bracelets and necklaces. It is revealed that many auction houses are slowly moving back to this suite of products in order to maintain revenue streams. On the side-line, rarely do the market see auction houses like that of JV Auction where innovation and leveraging of big data become a compelling reason to excel and execute a radical change. For example, JV Auction’s Collaborative Auction Program allows for non-traditional players of the auction market to participate. Baseline functions depicts that the procurement team continues to diversify, against defying odds, its products for its members to participate in its co-financing auctions, giving many a preview to the fantastic work that JV Auction is doing for the industry.
It is reported that during JV Auction’s first such campaign in April 2020, over 80 members co-financed this item called The Yellow Diamond Daffodil Earrings, an eye-catching piece that features 7.7 carats of diamonds, in less than 3 days.
Each said campaign launches an array of valuable items and participating members will secure and participate in these items for auctions by opening up co-financing options to its members. A minimum return on every item with the co-financier shares a percentage of the profits with JV Auction. As these campaigns run in various lot sizes, members are able to participate with it these campaigns with their desired fund size.
For the above Yellow Diamond Daffodil Earrings, private auction held on the 15th April 2020, its final hammer price was USD59,000, fetching a return on investment of 7.66%. It indeed a resounding success for the young platform.
During a brief telephone interview, JV Auction’s Asia Auction Director Mike Zhang expressed his enthusiasm with the number of members who joined this auction. Participation levels were within his expectations, due to the confidence he had in the quality of the diamonds the company acquired.
Mr. Zhang also mentioned that the team was very heartened by the response and will strive to bring JV Auction’s platform and services to everyone in the world. It is reported from the company that there are 2 campaigns held monthly with each campaign lasting about two weeks. Hundreds of members have engaged in JV Auction’s first campaign.
With this new kid on the block, it remains to be seen if the industry will attempt to embrace this new wave of change. The epic use of technology and e-commerce and the concept of co-financing to create an efficient auction is clearly exhibited in the case of JV Auction. It is now, without a doubt, a feat that is hard to surmount by the regular auction houses.