RAPAPORT... Organizers of the IIJS Signature show in Goa were hoping that the city’s remote beaches, dense vegetation and scenic vistas would provide the perfect environment for exhibitors and visitors to mix business with pleasure in a relaxed setting. Having survived 2009’s global economic turmoil, the approximately 50 exhibitors were enthusiastically pursuing opportunities for sales with both domestic and international buyers.
In stark contrast to the huge, sprawling IIJS show held in Mumbai every August — India’s largest jewelry trade fair attended by close to 30,000 international visitors — IIJS Goa, now in its third year, follows an invitation-only format and focuses on the growing domestic jewelry market. The Gem & Jewellery Export Promotion Council (GJEPC), the premier organizer of both shows, sees the Goa event, which took place February 19 to 22, as a niche opportunity for exhibitors. The approximately 300 visitors included seven foreign delegations from Armenia, Bangladesh, Iran, Russia, Uzbekistan, Poland and Azerbaijan.
“The Goa show is set up to be a domestic fair and functions at a relaxed pace. Exhibitors and visitors have more time to talk and plan for the year ahead,” said Sohil Kothari, director of Fine Jewellery, India, a diamond jewelry manufacturer. “Some larger retailers give you a lot of their time, so that is a big advantage of the show.”
Prior to the event, organizers were reportedly considering changing the venue and possibly canceling the fair altogether, due to the weak performance of the show in 2009. But GJEPC Chairman Vasant Mehta said the success of this year’s IIJS show proved that “We need a second show outside of Mumbai to showcase Indian jewelry design and manufacturing.”
In his opening address to participants, Mehta noted that India has moved beyond its old stigma of producing only lower-category jewelry. “We now produce all kinds of jewelry,” he stressed.
Diversity Shows
The diversity of the domestic jewelry market was evident on the exhibition floor. Kothari explained that cultural influences and tastes in India vary with each region, and that extends to jewelry design. As a result, he said, “The industry has to cater to a wide variety of demand in terms of both product quality and product design.”
Vendors noted that this diversity of demand makes it difficult to develop a national brand in India. Rajiv Beri, a director at Josh Jewels, India, added that the country’s domestic consumers are less brand conscious than their international counterparts, and tend to focus more on cost. Payal Turkar, a senior manager at Gitanjali Gems, noted, however, that as India’s economy has grown, brand awareness has increased, although there are not yet many Indian retail brands.
As one of the older players in the domestic jewelry sector, Gitanjali has the most comprehensive portfolio of brands, which, Turkar explained, caters to all segments of society and to all regions. The portfolio ranges from pieces priced at $110 to $220 to very-high-end products.
Many of the vendors operate in the wholesale and manufacturing sector and came seeking to strengthen relationships with existing retail clients, as well as find new customers.
“It was a good show even though the number of visitors and exhibitors was down,” said Binay Goenka, vice president of sales at Kama Schachter. “It’s about relationships here and we had the opportunity to meet new clients and strengthen existing relationships in the domestic market.”
Siddharth Kedia, vice president of marketing at Suashish, agreed, noting that Goa presents an opportunity to gain exposure to the wider Indian market.
Market Exposure
While some show attendees expressed disappointment at the low international turnout, most traders were satisfied that the event provided an opportunity to further penetrate the growing Indian market, which they say has proved to be recession-proof. “It’s because of the domestic market that manufacturers have no major issues” from the recession, said Shailesh Sangani, of Priority
Jewels, which manufacturers jewelry for retailers. “There is huge internal Indian demand.”
According to the All India Gems & Jewellery Trade Federation (GJF) — an umbrella body for the local jewelry industry — the country’s domestic market for jewelry was valued at about $30 billion in fiscal 2009, with diamond jewelry accounting for approximately 20 percent of the total. Retail jewelry sales have grown at the rate of 10 percent to 15 percent a year recently and this rate does not appear to have slowed in the current fiscal year, Ashok Minawala, GJF’s chairman, reported.
While the show’s focus was on jewelry, the 2010 event also marked the first time that loose diamonds were displayed as a separate product category, even if few companies participated in the diamond pavilion. Colored gemstones also had their own exhibition area. The sales team from Venus Jewel reported that they were able to meet some new clients at the show, but added that they would like the organizers to raise the diamond pavilion's profile to attract more potential buyers.
“The Goa show should be focused on the domestic market and exhibitors who are here should be prepared to cater to local clients,” said Goenka. “We have sufficient demand within India and there’s a pan-India boom at the moment.”
Article from the Rapaport Magazine - April 2010. To subscribe click here.