media holding

www.junwex.com

Russian Jewellery Market Review

Jewellery industry of Russia is using currently only 80-90 tons of gold per year. Min administrative intervention of state bodies Max efficiency of market mechanisms The majority of market players (not less than 99%) are private (including family) companies and corporate enterprises. Only two of all trade manufacturing enterprises Moscow Special Alloys Processing Plant and workshops under the Administration of the Russian President are state-owned. Today the number of such companies is close to 25000. The largest of them hold not more than 5% of the market, meanwhile there are no monopolies at the market. Retail market of Russian jewellery products 34 mln golden jewellery items 50 mln silver 1,3 mln diamond items were sold in Russia in 2011. 10 bln dollars total volume of sales a year Comparing to 2010, production of diamond jewellery items increased by 13,8% in 2011, according to the data of RusJewellerExpert and Russian Federal State Statistics Service.

Russian Jewellery Market Review

Russian jewelers learned a number of lessons from the decline in consumer demand in 2009-2010 and from current conditions of globalised economy. Russian Consulting Agency RusJewellerExpert made a survey within exhibitors of largest Russian jewellery exhibition JUNWEX MOSCOW 2012: What steps have you done to optimize your business in conditions of crisis?

Increased production of silver jewellery Increased shipments of products to the regions Increased staff salaries Launched a new line for production of lightweight products Created new jobs Reduced the production volume of jewellery with precious stones (diamonds, sapphires, emeralds etc) Reduced the part of employees Reduced the salaries of employees

52,60% 37,00% 22,20% 1 31,90% 28,90% 11,90% 8,10% 0,70% 0,00% 20,00% 40,00% 60,00%

Jewellery Retail Chains

According to the survey Retail jewellery chains conducted by RosBusinessConsulting, in 2011 the volume of retail jewellery market of Russia raised by 19% in monetary terms. Adamas, Almaz-Holding, Moscow Jewellery Plant, 585 Jewelry Retail Chain Co and Yashma Zoloto form the list of five leading companies in jewellery retail by the number of stores.

Jewellery Retail Chains

Large retail jewellery chains of federal level are still strengthening their positions at the most prospective markets of the Volga, Central and Southern Federal Districts. Abundance of local operators at the Russian trade market, entry of manufacturing enterprises to the market with their own retail goods and reinforcement of price competition are the factors deterring the development of federal retail in the Ural, Siberian and Far Eastern Federal Districts.
% from the total quantity of jewellery shops

120,00 100,00 80,00 60,00 40,00 20,00 0,00

as te rn S Fe ib er ia der a n N V Fe l D i or o s d th lga era tric w es Fe l D t d is te rn e ra tric Fe l D t U r a de istr S ic ou ls F ral t ed Dis th er er tri n c C Fe al D t en tra der istr ic l F al t ed D is t er al rict D is tr M ict o S t.P sc et ow er sb ur g
Federal District

Fa rE

Local Jewellery Retail Federal Jewellery Retail Chains

Jewellery Retail Chains

Following the results of the year 2011, according to the data of Russian Federal State Statistics Service, the growth in the volume of retail sales of jewellery products in the Russian regions amounted to a little more than 16% in comparison to the year 2010.
Far Eastern Federal District 6% Central Federal District 33%

Siberian Federal District 11%

Urals Federal District 12%

Volga Federal District 11% North Caucasian Federal District 8% Southern Federal District 11%

Northwestern Federal District 8%

State of Russian jewellery industry

Jewellery manufacturers breakdown by federal districts 2010

4% 2% 1% 2% 2% 5% 9% 2% 9%
1% 1% Central Federal District District Central Federal 1% Northwestern Federal Federal Northwestern District District 5% Southern Federal District District Southern Federal

2011
4% 2% 8%

4%

North CaucasianCaucasian Federal North Federal District District Volga Federal District District Volga Federal Urals Federal District District Urals Federal Siberian Federal District District Siberian Federal Far Eastern Federal District District Far Eastern Federal 75% 75%

78%

Major tendencies of the Russian jewellery market

1. The Russian market has saved its strengths for a bound forward. This potential will be realized during 20132018. 2. Foreign players are expected to generate significant activity at the Russian market, particularly in the sphere of retail (this activity is caused by the decrease in customer demand in European Union, the USA and Japan). 3. Having weakened during the crisis of 2008-2011, pseudo-oligarchy will contribute to more favorable competitive environment. 4. Fight of law enforcement agencies against corruption, even if it turns out to be temporary measures, will help Russian business environment notably recover and attract many foreign investors.

Conclusion
Truly, there is not a single country that could protect itself from crises affecting the whole world. Russian consumers will not be able to avoid the growing prices. However, reindustrialization of heavy industry and other factors mentioned above, as well as more or less realistic governmental programmes relating to modernization of all spheres of economy give grounds to have an optimistic outlook for the future of Russian jewellery market. Meanwhile, one of the main tracks of its development is seen in creating joint ventures with both the leading transnational jewellery houses and with the specialized Western and Eastern jewellers workshops.

Content
RESTEC JUNWEX Media-holding
1. 2. 3. 4. 5. General Information New opportunities Complex promotion program Russian Jewellery Trade Club Jewellery Market Portal

General Information
RESTEC JUNWEX is a professional industrial B2B media-holding including: The largest jewellery industry exhibitions in Russia: JUNWEX St. Petersburg (Saint-Petersburg), New Russian Style (Moscow), JUNWEX Moscow (Moscow). RusJewellerExpert Consulting Agency the only analytical center on the former Soviet Union area, which monitors the jewellery market of Russia (marketing research, consulting, brand technologies, design solutions, development and support of Internet projects, internet marketing, organisation of business contacts and business trips, conferences, Industry Internet portal www.junwex.com). Jewellery Russia Publishing House (JEWELLERY RUSSIA Magazine, BEST ADORNMENTS in RUSSIA Magazine, a weekly news-wire JEWELLERY RUSSIA issue with monthly supplement JUNWEX TECH). Russian Jewellery Trade Club the most numerous professional association of wholesalers and retailers on the Russian jewellery market.

JEWELLERY RUSSIA Exhibitions

1. 2. 3. 4. 5. Exhibition Programme JUNWEX St. Petersburg JUNWEX Tech NEW RUSSIAN STYLE JUNWEX Moscow Promotional Activity

New Opportunities
Combining multiple media-resources such as exhibitions, congresses, magazines, Internetresources and consulting, RESTEC JUNWEX offers an entirely new set of business development opportunities for international companies entering the Russian jewellery market.

Business development

Most efficient and relevant methods of marketing An individually designed Complex promotion program for jewellery manufactuters Business development program for jewellery trade companies

media space

A coordinated approach to total asset management embraced by the holding allows to reach synergy effect that enables us to provide jewellery companies with efficient help in development of their business.

Complex promotion programme

GOLD OF BRAZIL by VIANNA JOIAS

11 15

c 2010

junwex

! ,

Complex Promotion Programme is a set of promotion services which was specially elaborated for foreign companies willing to start business in the prospective Russian market. This includes both preliminary and on-site promo opportunities enabling to increase your booth traffic at the show or to search dealers and distributors in case you plan to study market potential. To achieve maximum commercial effect at the fair, RusJewellerExpert Consulting Agency recommends you to combine booth participation with the complex of Pre-fair and At-the-show activities (direct marketing, Internet, video and printing advertisement, PR) which will ensure your success!

. 4445

Trade Press JUNWEX-JEWELLERY RUSSIA B2B magazine Analytics, statistics, forecasts and other information about Russian jewellery market
108 pages, 14000 copies, 7 issues a year.

marketing Marketing of jewellery industry: information, analytical reviews, market monitoring, ongoing analytical researches, forecast and statistics.

JUNWEX Advertising Agency Full range of services in PR, GR and marketing. JUNWEX Design-studio services of designers, photographers experienced in jewellery area.

Congress and exhibition sector Organisation of congresses, conferences, roundtable meetings, seminars and presentations. Support for exhibiting at the Russian and foreign events.

BEST ADORNmENTS in RUSSIA B2C magazine Key information on the latest trends in jewellery
52 pages, 155 000 copies, 8 issues a year

Distribution: subscribers, direct mail delivery to the members of the Russian Jewellery Trade Club (jewellery wholesalers & retailers), jewellery exhibitions in Russia (exhibitors & visitors) and participants of industry conferences and seminars

Russian Jewellery Trade Club

RUSSIAN JEWELLERY TRADE Club is the biggest business association on the Russian jewellery market uniting more than 6500 wholesalers and retailers from 806 cities of the Russian Federation.

Business activity: Buy at the stores of RUSSIAN JEWELLERY TRADE Club Integrated
corporate activity for strengthening Club members competitiveness.

Business Contacts Exchange Establishment of business links between

manufacturers and trade companies to arrange active supplies to the jewellery stores of Russian Jewellery Trade Club.

Regional project Russian Jewellery Trade Club supports regional fairs

within the framework of JEWELLERY RUSSIA Exhibitions in Ekaterinburg, Kazan, Kaliningrad, Kostroma, Mahachkala, Perm, Samara, Yaroslavl. The main purpose is to represent the interests of the Club members in regions by developing and maintaining customers` loyalty.

Cooperation with Russian Jewellery Trade Club:

Buyers Programme delegations of trade visitors; Direct-marketing a program specifically designed to generate the booth traffic; match-making service Business Contacts Exchange - assistance in scheduling the
business meetings.

Jewellery Market Portal www.junwex.com

the leading and authoritative information source for the jewellery industry in Russia.

Weekly e-Newsletter
Online Weekly e-Newsletter JEWELLERY RUSSIA is a great opportunity to inform trade representatives about your brand and products with more than 6500 readers.

You can:
Represent new collections Announce company news Inform readers about your innovative selling points Announce forthcoming event your company participates in Place a banner with the link to your companys web-site

Advantages:
Your latest news in the News-wire will be seen by diamond and jewellery manufacturers www.junwex.com is a trusted web-source among the Russian jewellery community Advertisement opportunities (banners, exhibitor news/announcements in the News-wire, JEWELLERY RUSSIA Weekly E-Newsletter, Exhibitor company profile interview) Operative information distributing from the RESTEC JUNWEX jewellery news portal

Banner

of constant promotion to target audience.

Restec Junwex:
Marketing and Sponsorship Opportunities
RESTEC JUNWEX Media-holding is ready to media-resources on the Russian jewellery market.

At-the-Show:
On-site Buyer Communication Opportunities:
Junwex website summary:
1. Logo on the Show Floor Plan on the information desk 2. Enclosure specials/CD catalogue etc.) to be distributed among jewellery buyers on-site Featured Product Showcase 3. Featured Product Showcase First Exhibition Showcase 4. Promoters to distribute Ad materials among visitors 5. Indoor banners 6. Outdoor banners

1,412,177 - banner displays

per month

3,093 - average number of visitors

per day

52,205 - monthly unique vsitors 8,2 minutes - average time

Pre-Show:
Online-Marketing on the website

Pre-Show:
Show Direct Marketing Exhibitor Ad enclosure in JEWELLERY RUSSIA trade magazine to be distributed by post among subscribers (more than 6,500 addresses)

www.junwex.com
Place your company banner and it will surely catch the website visitors eye Have you got any News? Do you have a unique selling point and want to announce it? E-mail marketing

6500 readers of e-Newsletter: 47 % - industry professionals 25 % - jewellery shows exhibitors 14 % - subscribers of the website 11 % - state institutions & public
organizations

Post envelope sponsorship (Ad space is 110x110 mm) In focus: Trade Visitor attention Logo on the Show Invitation ticket Logo on the Visitor Guide indicating booth position Pre-show & at-show free distribution

JEWELLERY RUSSIA E-newsletter

This weekly e-Newsletter gives you the opportunity to promote your brand to thousands of website visitors and e-Newsletter subscribers

3 % - others

XXI International Jewellery Forum

Exhibition program
The exhibition program includes 8 major jewellery shows. Among them the biggest are JUNWEX Moscow, JUNWEX St. Petersburg and New Russian Style. New shows are to be arranged in other parts of Russia.

Events calendar

JEWELLERY RUSSIA exhibitions

JUNWEX St. Petersburg

6-10 February 2013 Lenexpo, St.Petersburg XI International Jewellery Show

JUNWEX New Russian Style

30 May - 3 June 2012 // 29 May - 2 June 2013 All-Russian Exhibition Centre, Moscow VIII Jewellery Wholesale Trade Fair

Junwex Moscow
15-19 September 2012 // 14-18 September 2013 All-Russian Exhibition Centre, Moscow Russian Watch Salon

Junwex Watch

B2B Exhibitions

15-19 September 2012 // 14-18 September 2013 All-Russian Exhibition Centre, Moscow Jewellery Exhibition

JUNWEX Ekaterinburg
22-25 November 2012 // 5-8 December 2013 Ekaterinburg

Jewellery Exhibitions

Best Adornments of Russia

5-9 December 2012 // 4-8 December 2013 All-Russian Exhibition Centre, Moscow 12-16 December 2012 // 11-15 December 2013 Central Exhibition Hall MANEGE, St.Petersburg 30 January - 3 February 2013 Central Exhibition Hall MANEGE, St.Petersburg 4-8 March 2013 All-Russian Exhibition Centre, Moscow

Cash & Carry Exhibitions

XXI International Jewellery Forum

JUNWEX St-Petersburg 2013

6 10 February 2013 Saint-Petersburg LENEXPO Fairgrounds in Gavan (Bolshoy pr. V. O., 103) Traditionally, almost all of the best Russian and foreign companies as well are represented at the exhibition JUNWEX St. Petersburg. That is why the exposition of the Jewelry Forum is the largest exhibition area of the city. Moreover, the LenExpo has several unique qualities and meets all the requirements necessary for decent exhibitions. More than 650 exhibitors display their best pieces - jewellery, watches, cutlery, personable and souvenirs, art weapons and much more.

JUNWEX Petersburg 2012 in figures:

Trade show area 21,998 sq.m. Number of participants 589 Number of trade visitors 15375 Breakdown of the visitors Wholesales and retailers 76,72% Jewellery manufacturers 12,48% Other

10,8%

TECH 2013
International Exhibition of Jewellery Machinery, Equipment and Packaging JUNWEX TECH

JEWELLERY INDUSTRY: design, technologies, equipment

6 10 February 2013 Saint-Petersburg LENEXPO Fairgrounds in Gavan (Bolshoy pr. V. O., 103)

International Conference

Technical sections of the Exhibition Equipment and technologies for the jewellery mass production Jewellery tools and operating supply; gem-cutting Accessories (semi-finished goods, mountings) Services on adjustment, after-sales services and maintenance of equipment Services on complete technical support at the stages from master models to the storage of finished-products Systems of three dimensional prototyping and development of master-models scales and gemology equipment Demonstration and sales equipment; packaging Security systems for jewellers

JUNWEX TECH, founded as a part of JUNWEX St. Petersburg in 1992, became the independent exhibition in 2006 and occupied a separated pavilion. The Exhibition and the Conference will be organized within the frameworks of JUNWEX St. Petersburg from 2 to 6 February 2011, expo centre Lenexpo, St. Petersburg, Russia. Exhibition area will be around 1200 sq. m. Participants from all over the world will demonstrate up-to-date technologies and trends of jewellery field. JUNWEX TECH provides: The opportunity to see the latest technologies, up-to-date equipment, new materials for jewellery industry Solution for modernization of the equipment, effective period prolonging, repairs, replacement of separate units, guarantee and post-guarantee service A meeting place for jewellery industry professionals where they can discuss the es tablishment and development of relations with jewellery equipment manufactures and new technologies developers Jewellery packaging, demonstration and lighting equipment

Interested in exhibiting? JUNWEX TECH offers: Exhibition space Participation in the conference JEWELLERY INDUSTRY: Design. Technologies. Equipment Buyers service Complex promotion and advertising program

XI International Jewellery Exhibition

JUNWEX. NEW RUSSIAN STYLE

May 30 June 3, 2012 May 29 June 2, 2013 Moscow All-Russian Exhibition Centre The IX International Jewellery Exhibition NEW RUSSIAN STYLE will gather over 300 jewelry manufacturers at All-Russian Exhibition Centre in the heart of Moscow. In 2011 more than 500 exhibitors will be presenting Russia, and Italy, Germany, France, Brazil, Mexico, India, Thailand, Hong Kong and China. NEW RUSSIAN STYLE will help you to establish business in Russia and to

with foreign partners and investments attraction. New venue of All-Russian Exhibition Centre is one of the best exhibition halls in the Eastern Europe and corresponds to all world technical standards.

and technical servicing. Trade show area 21, 011sq.m. Number of participants 329

Number of trade visitors 16 634

Jewellery Wholesale trade fair

JUNWEX MOSCOW
15 19 September 2012 14 18 September 2013 Moscow

All-Russian Exhibition Centre

Modern exhibition technology, providing advanced strategy of wholesale trade on the threshold of autumn-winter sale season and active marketing of new products. Conclusion of contracts, wholesale purchase of products based on corporative conditions by the members of Russian Jewellery Trade Club will give exhibitors considerable advantages at the Russian jewellery market

International conference
Jewellery industry: Marketing. Competitiveness
Purposes of the conference: Integration of the latest marketing technologies into the Russian jewellery industry Increasing of the competitive advantage of Russian jewellery companies in the world market development of jewellery business in Russia Promotion of trade expansion and economics relations between domestic and foreign jewellery enterprises Key Topics: Theoretical basis of marketing: market segmentation, research and analysis Modern advertising and PR-technologies increasing customers loyalty Creation and support of successful brand

JUNWEX Moscow 2011 in gures:

Trade show area 21, 011sq.m. Number of participants 535 Number of trade visitors 36140

media holding

For more information please contact: 12, Petrozavodskaya str., Saint-Petersburg 197110 Russia Tel: + 7 812 303 9869, Fax: + 7 812 320 8090 E-mail: overseas@restec.ru Ms. Tatiana Budnaya, Representative of CIBJO in Russia Oficial representative of RESTEC in Italy Tel.: +39 327 663 81 10 Mob: +7 921 320 55 32 Fax: +39 02 499 764 07 E-mail: club@junwex.com