HAVING spent years honing his craft and designing for illustrious personalities such as the late Pope John Paul II and the actress Monica Bellucci in the film Malena, independent jewellery designer Carlo Izzo feels that he is finally ready to expand outside Italy. But although the world is his oyster, one of his first choice expansion destinations in the world - and certainly in Asia - is, surprisingly Singapore. Not China, not Japan or even Hong Kong, but the Lion City.

'In this current economic climate, there is no denying that the money is in Asia which is why I want to focus on this market. That said, there are many reasons why I want to enter this region via Singapore,' says Mr Izzo. He was in town earlier this month with the Italian Trade Commission, looking for franchise partners here.

'As a businessman, I think that the Singaporean market offers security, which is very important to me. Business practices here have a good, clean reputation that many other cities don't have. But more importantly, I see Singapore as the perfect gateway to the rest of Asia. Just like how people around Italy go to Milan to find new products and experiences, likewise, Singapore's international nature makes it an ideal trendsetter.'

Indeed, industry sources say that in the past five years or so, there have been many Carlo Izzos - jewellers who have bypassed other regional cities in favour of a presence in Singapore, and that the city has gone someway in taking on Hong Kong as the jewellery hub of Asia. While it is impossible to assess the actual worth of the entire local jewellery industry, Ho Nai Chuen, president of the Singapore Jewellers Association (SJA) says: 'According to info extracted from the previous Singapore International Jewellery Show(s), it has grown S$1.1 billion in 2003 and perhaps to S$1.6 billion in 2008.'

This growth, sources say, was the result of simple demand and supply.

'In the past, Hong Kong was the jewellery kingpin in Asia because there were more people in Hong Kong who were willing to spend serious money on jewellery as compared to Singaporeans who were much more conservative buyers,' observes industry veteran Esther Ho, who three years ago, eschewed Hong Kong in favour of Singapore to start Zenith Affair, a private jewellery retail showcase.

'But five years ago, we noticed a shift in the Asian jewellery market. The period around 2004 was the start of a boom economic time in Singapore so consumers were starting to spend more, especially on jewellery which they started to see as worthwhile investments.'

Agrees managing director of jewellery brand DeFred (at Grand Hyatt) Sharel Ho: 'I would estimate that the local jewellery industry has grown maybe 20 to 30 per cent in the last five years.

'While in the past only people from high society would buy jewellery, around five years ago we noticed that there were more white-collared professionals buying jewellery rather than just clothing and bags as well, especially during bonus times. This is because they started to see jewellery as good investment pieces that can become family heirlooms.

'With an influx of jewellery brands in the market, it also meant that they had choices. So rather than travelling overseas to buy jewellery, they feel more comfortable buying in Singapore because they know should anything go wrong, they can always come back to the shop to get the pieces polished or fixed. This helped the local jewellery market to grow.'

Jewellers specialising in more fashionable and cutting-edge designs also find that their designs suit the local palates better than in Hong Kong.

Independent Italian jeweller Mario Buzzanca who sells through Zenith Affair notices that 'Singaporean ladies are very sophisticated in their taste for jewellery and they have a penchant for modern designs as well as pearls. Those who can afford to collect my pieces really appreciate them for what they are, unique, one-of-a-kind high-end jewellery.'

Observes Zenith's Ms Ho: 'A higher number of well-travelled Singaporeans also means that jewellery consumers are not just more open to niche international jewellery brands beyond Cartier and Tiffanys, but are also adventurous when it comes to choosing stones. In Hong Kong, traditional stones such as jade still reign supreme.'

The result, she says, is that more international jewellers are seeing Singapore in a different light and that the city is making an impression with its more diverse demand for jewellery.

Marjory Lim, managing director and co-founder of Forever Jewels, a Singapore-based manufacturer and wholesaler of jewellery, is of the same mind. 'I think the Singapore jewellery market is getting more fashion-forward with each passing day,' she says. 'Singaporeans, being immersed in a cosmopolitan society, are generally open and embrace change. They bring this attitude to jewellery-buying - they enjoy seeing new designs with cross-cultural influences. This therefore makes us an active market and a strong alternative jewellery hub to Hong Kong.'

Although currently better known as a supplier and maker of fine jewellery and a regular participant at major international trade fairs in New York, Bezel (Basel) and Dubai, Forever Jewels is set to make a big splash in Singapore's retail market.

After more than a decade of building a reputation overseas through international trade fairs, come July 3, the prodigal child of the local jewellery industry will helm Around The World Jewellery Show 2009 - a three-day retail event at the Tent@Orchard (Ngee Ann City Civic Plaza), showcasing over 3,500 of their designs that are worth over S$10 million.

This is a prelude to the company opening two boutiques of two retail brands in Singapore by the end of the year - the flagship store CUPID at Orchard Central in August and another concept store in Marina Bay Sands at the end of the year.

Says Ms Lim: 'While our main business is still in wholesale and catered to an international market, we also believe that Singaporean consumers are now in a position to appreciate and enjoy quality jewellery that is unique. That is why we are planning to go into retail this year.'

Sophistication aside, Ms Ho adds that Singapore's jewellery industry is giving Hong Kong's more saturated and competitive market a run for its money because it is cheaper for jewellers to come here.

Says Ms Ho: 'Due to the cost of space, taxes and entertainment costs in Hong Kong, any jeweller planning to enter or sell in the Hong Kong market must be prepared to spend roughly three times more than if they did so in Singapore.'

Lower costs in Singapore makes a popular choice amongst the smaller independent jewellers such as Mario Buzzanca. 'Overheads are always an issue,' he says. 'For independent jewellers like me, we are always sensitive to that. I don't think I want to be pressurised to go into mass production to make ends meet.'

Adds Ms Ho: 'I would estimate that revenue in Hong Kong during a simple one week retail showcase would be about 20 per cent higher than in Singapore. But their overall profits after costs would still be lower than in Singapore.

'Unless you are a big jewellery brand with huge sales volumes and sufficient economies of scale, it makes no economic sense for a jeweller to choose Hong Kong over Singapore which is why to me, Singapore is more popular when it comes to the smaller, more niche international brands.'

SJA's Mr Ho warns though that it is unlikely that Singapore could really overtake Hong Kong in the foreseeable future because of a few key reasons:

Firstly, Hong Kong is just next to South China where factories and cheap labour are readily available. Secondly, Hong Kong is a free port where traders are free to hand carry inventory in without having to declare at the customs. Thirdly, Hong Kong organises many jewellery shows annually and international buyers are quite familiar with the place and customers and finally, Hong Kong has less red tape compared to Singapore in terms of movement of jewellery inventory.

In order to take off exponentially, Mr Ho believes that bodies like International Enterprise, Spring, the Singapore Tourism Board, Singapore Airlines and the Inland Revenue Authority of Singapore must come in to support international jewellery shows in Singapore, work to remove red tape and offer better incentives for international traders to come to Singapore. 'Singapore has got the potential to be a jewellery hub in Asia as it has got excellent infrastructure, tight and reliable security, effective telecommunication networks, efficient transport system,' he says. 'Singapore may not have the manufacturing capabilities, but it can serve as a sourcing hub serving the Asia Pacific region.'

This article was first published in The Business Times