RAPAPORT... In Western countries, December is the time when people engage in a lot of shopping for the Christmas season. In India, shopping activity starts in October and continues until May, a period that also happens to witness a lot of weddings. Jewelry sales are trending upward as jewelry in India is not only seen as a fashion accessory, but also considered an investment.
A Diamond GiftCommenting on the sale of diamonds this season, Anil Shah from Venus Jewel said: “It can be said that a holiday season brings joy and celebrations with lots of gifts. When we talk about gifts, diamonds can be a major component. Consumers nowadays are aware of the importance of diamonds that have better fire and they prefer diamonds that have higher standards of cut, polish and symmetry. Overall, there has been an excellent response to Venus Jewel during this holiday season.”
Shah said he sensed that people have more confidence that the current stability will continue into the future.
Gitanjali, too, seems to be happy with the response it is witnessing this season. The company’s Mehul Choksi said that “The holiday season in India is shaping up very well. In fact, we would call it extraordinary. As compared to last year, sales this year are up by 50 percent. The Nakshatra line of jewelry, which comes in traditional as well as contemporary design, is very much in demand.”
Expressing a different view was Paresh Mehta, vice president, sales, Dimexon Diamonds Ltd., who said, “The holiday season this year was very late. It has been a late and short season. Last year’s season was better. Last year, the customers bought earlier and did not buy much in the second half of the year, which caused speculation in the business-to-business market and hence rough prices went up. This year, the customers bought very late so there was no pressure on rough prices.”
Preferences in IndiaTalking about market dynamics, Vijay Jain, chief executive officer (CEO), Orra, said: “One of the most important trends is an overwhelming preference for traditional designs in jewelry, especially for the wedding season. Diamonds are extremely popular and their combination with precious stones like rubies, emeralds and pearls is witnessing a resurgence for a classy, regal look. Platinum is gradually gaining acceptance and increasingly becoming a natural choice for engagement rings and wedding bands.”
In spite of the market being sluggish early in the year, each player in the market is in a way recovering his due sales for the year. “Every year, we witness a double-digit growth in our sales,” said Shah. “This year, we also have been experiencing a steady growth in the sales of our diamonds. For us, it has been a positive growth of around 30 percent for the two-month holiday season of September and October, compared to the sales figures for the same period last year.”
Sharing details about what is in demand, Shah added: “During the holiday season, each and every product is in demand, but round brilliant diamonds are the most preferred and fastest-selling items. It has been observed that more and more customers prefer high-end premium solitaires, as demand for stones in 3-carats-and-above sizes is increasing across the globe.”
The wedding and festive season is the right time to add new items to the portfolio. Choksi said Gitanjali is “coming up with special ranges and collections, such as the Vivaha Bridal Diamond Jewelry. We have also launched the Bollywood Gold collection and the Desire line, which consists of steel and titanium jewelry studded with diamonds.” Jain noted that Orra recently launched “the Platinum Couples Collection, an exclusive range of complementary platinum rings for ‘him’ and ‘her’ set in exquisite diamonds.”
Other MattersThe Confederation of Indian Industry (CII) is organizing a two-day conference in December called JewelTech 2006. The meeting is expected to explore how technology can play a big role in boosting business. Meanwhile, the gems and jewelry industry in India is jittery over a U.S. proposal to end sops for Indian imports. Jewelry exports from India worth $1.7 billion may be hit if Republican U.S. Senator Bill Thomas and others are able to pass a bill to terminate the duty-free entry of these products under the Generalized System of Preferences (GSP). The Indian Gems and Jewellery Exports Promotion Council (GJEPC) has approached the Indian Commerce Ministry to look into this legislation.
Stable demand is seen post-Diwali for goods in all categories. Shortage in supply is seen in many categories because most manufacturing units are not functioning at full capacity. Fluctuation in the dollar rate also added to mixed trading activity, with sales extremely good to very slow at times.
The Marketplace• Stars and melees were very strong the entire month, with high demand and shortages to match orders. Goods moved in the category of I1+/J+ in whites. Browns and yellows also sold very well.
• 0.50 carats are in very good demand in two clarity ranges, I1 - I2/J+ and VS2+/I+.
• 0.70 and 0.90 carats are still selling very well, with shortages seen in VS2+/H+. Oversized goods are commanding a premium of 2 to 3 percent minimum.
• Demand has picked up for SI1-SI2/I+ for 1-carat goods.
• 1.50 to 1.99 carats are very hot, with goods hard to find in better colors and clarities in nice makes. Lower colors and clarities are much easier to find.
• 2 carats are stable with goods available in most colors and clarities. Premium sizes are slightly hard to find.
• 3 carats+ are in good demand, especially for matched pairs. Not too many stones are seen locally.
• Green, pink and yellow colors in sizes up to .20 carats are in very good demand. Good demand exists for fancy yellows above 1 carat.
• Rose cut diamonds are in good demand, especially small goods up to .50 carats.
Article from the Rapaport Magazine - December 2006. To subscribe click here.