Animating the Market
Even the home of the venerable akoya is seeing its jewelry market change.

Though Japan's economy has shaken its jewelry industry, it is still a respectable pearl consumer, one whose tastes are starting to diversify to reflect the country's changing society.

"People usually say that the entire jewelry market in Japan is worth about 1.3 trillion yen [US$10.4 billion] a year, and all kinds of pearl jewelry probably make up about 35 percent of that," estimated Seijiro Tasaki, executive vice president at Tasaki Shinju.

As with most pearl markets, the availability of inexpensive pearls over the last several years has deeply affected public perception of what pearls are for.

"Until now, the pearl in Japan was for formal wear, like when going to weddings. People had few chances to wear them. But now women are wearing them for casual occasions, too, and we are making products just for this purpose," Tasaki added.

More casual and "fun" pearl jewelry tends to mix different colors or kinds of pearls together, or use unusual settings or stringing techniques, he said.

This year golden-colored South Sea pearls are popular, particularly smaller sizes and earrings set in 18K yellow gold. Sets of black Tahitian pearl rings, pendants, and earrings set in gold are also selling well. Black Tahitians are traditionally for older women in Japan, but with smaller sizes, new designs, and lower prices than before, they are appealing to a younger set.

Different from the past, nowadays Japanese consumers are looking for more unique and original styles, according to several sources. At the same time, a celebrity wearing a particular kind of piece can help make sales take off like a rocket.

"A lot of people want necklaces set with numerous Mabe pearls right now. [Crown Princess] Masako wore one on TV when she had her baby in December, and people have been looking for them ever since," remarked Yoshikazu Suzuki, president of Suzuki Kogei, which deals exclusively in Mabe pearls.

The poor Japanese economy is definitely taking a bite out of pearl and all jewelry sales, now estimated at about half the size they were 15 years ago during the bubble years. More and more consumers are prioritizing price when choosing their pearl jewelry, said Tatsu Kuramoto of Kuramoto Pearl. He estimated this kind of shopper to be about 70 percent of all pearl consumers.

"The people who are buying the more expensive items are thinking about passing them on to the next generation, but those buying lower-end goods are just focusing on the short term. Their decisions are more about fashion," he said.

On the other hand, dealers in higher price points seem to be weathering Japan's ongoing economic storms more comfortably than those selling items at lower price points.

"The bad economy doesn't make any difference for our business — we still have customers. We deal mostly in high-quality Japanese akoya, and these are popular. They are expensive, and both production and the supply of good-quality items are down. So the good ones are hard to find, and people come looking for them because most dealers don't have them," said Kazuo Kinoshita, president of Kinoshita Pearls.

With all the changes afoot in Japan, it's no surprise that the pearl jewelry business is changing too. But what's clear is that Japanese women still have a fondness for the so-called "moondrops" or "mermaid's tears" that were first cultured there.