Pearl Industry
The pearl industry is made up of four major categories of pearls; South Sea pearls, Black pearls, Akoya pearls and Chinese fresh water pearls. South Sea pearls, like those produced by Atlas, are the largest and most valuable of all cultured pearls in the world.
Although South Sea pearls represent less than 1% of global production by volume, they represent some 20% by value.
The premium price that is enjoyed by the South Sea pearl is a reflection of the time to production (4 years), finite supply (only produced in the South Seas by relatively few major players) and their superior size and quality compared to other pearls.
Barriers to Entry
As an established pearl farmer in a low cost production environment, Atlas is in an enviable position compared to its competition. New comers looking to enter the industry today face many barriers to entry including:
- Large initial capital requirements.
- Time to production for a commercial sized harvest of pearls (mi 5 years with hatchery production)
- Producing pearls at the quality the market demands on a consistent basis
- Technical knowledge
- Environmental factors
- The availability of suitable water leases
- In Australia, there are quotas which limit the quantity of pearl oysters caught and farmed, an issue that does not affect Atlas in Indonesia
- Establishing a trustworthy reputation takes time
Markets
Loose pearls are traded on a global basis with the largest demand coming from Japan, Hong Kong, Europe and the USA.
China, the Middle East and India are also expanding markets for South Sea pearls. Atlas has in excess of 35 wholesale customers located in all of these key markets.
Over the last few years Atlas has expanded into several profitable jewellery retail stores in Bali and Australia. The pieces we sell are designed and manufactured predominately using the pearls we produce. Atlas also has an online retail store offering customers a unique shopping experience.
Atlas continues to innovate into new value added pearl inspired products creating additional avenues of revenue for the company and shareholders.
