Come August, the entire global gem and jewelry industry sets its eyes on India and the India International Jewellery Show (IIJS) in Mumbai. The 27th edition of the show, held August 19 to 23, began and ended on a very positive and exciting note, attracting many international exhibitors and buyers. There were six pavilions from Belgium, Thailand, Israel, Italy, Turkey and the United Arab Emirates (UAE), in addition to the trade delegations from China, Malaysia, Japan, Iran, Syria, Morocco, Libya, Bangladesh, Russia, Uzbekistan, Azerbaijan, the U.K., Hungary and Poland.
The Gem and Jewellery Export Promotion Council (GJEPC), the show’s organizer, reported that IIJS easily achieved its goal of 30,000 visitors and generated approximately $858 million worth of business. Exhibitors at the show reported a healthy demand for G to I, VVS to VS goods in triple EX make, but they admitted that the price of those goods, as well as goods in other popular categories, hindered sales.
On the last day, as the show was closing, entry and exit points to the show were blocked to departing attendees and exhi-bitors for more than an hour as police investigated the reported theft of diamonds worth $1 million from Dalumi Group, an Israel-based exhibitor. Within 24 hours of the heist, police had apprehended four suspects at the Dubai airport and recovered the stones.
Spreading the Word
In addition to IIJS, the GJEPC has been very aggressive in pursuing initiatives designed to strengthen the gems and jewelry industry in India. The newest was the launch of India International Jewelry Week (IIJW) from August 15 to 19, during which 30 leading jewelry designers, design houses and young design talent from the industry showcased their work. According to Vasant Mehta, chairman, GJEPC, “The response received for the show was overwhelming, to say the least, especially considering this was the first time a show of this kind was organized in India.”
Mehta noted that the international response and interest generated from the event was a remarkable achievement as well. IIJW hosted buyers from Japan, Russia, the U.K., China, Italy, Thailand, Malaysia, Libya, Morocco, Iran, the Czech Republic, Poland, Ukraine, Azerbaijan and Uzbekistan over the five days.
IIJW provided an audience of potential buyers for new, emerging designers from such institutes as National Institute of Design (NID) and National Institute of Fashion Technology (NIFT). “It was a good platform for our designers, with each one given 20 minutes to showcase their designs,” said Mehta. Some of the budding designers will be awarded scholarships to the Gemological Institute of America (GIA).
The GJEPC also has announced that IIJW will go global in its second year, which Mehta said is expected to boost the export figures and benefit the Indian economy as a whole. “We hope to double our export figures for the gems and jewelry industry in the next five years. We hope this show will be a trendsetter for other jewelry associations around the world to create their own jewelry weeks.”
Shifts in Buying Preferences
The Art of Jewellery (AOJ), an Indian-based jewelry magazine, released a survey entitled “Indian Jewelry Retail: Market Challenges and Opportunities” during IIJW. The survey was conducted by Market Source Consultancy Service (MSCS) among 500 prominent jewelry retailers in ten cities across India.
Some of the survey’s key findings documented drastic changes in consumer buying preferences in recent years. Among the findings: Diamond consumers are showing more preference for studded jewelry and solitaires. In gold jewelry, 22-karat pieces are most preferred and there has been an increasing demand in recent years for platinum jewelry.
Of the survey respondents, 58 percent said that they preferred stocking general jewelry merchandise, while the remaining preferred catering to niche markets. Retailers also reported being more inclined toward in-house manufacturing, as it helps them save on costs and enhances their opportunities to create customized designs.
An interesting fact revealed by the survey was that Indian retailers are not eager to stock jewelry brands. Only 37 percent of the retailers interviewed stocked brands and the remaining 63 percent did not seem interested in doing so. Commenting on the future of gold prices, the majority of respondents expect the price in 2010 to hold between $430 and $490 for 10 grams.
Presenting its outlook at IIJS on the Indian diamond industry’s performance in the medium term, Crisil, a leading ratings, research, risk and policy advisory company, reported that “The credit risk profiles of India’s diamond and diamond jewelry players will remain stable over the medium term, on the back of steady demand expected in key markets, and improved prices of polished diamonds in 2010-11.” Crisil based its remarks on a study of 142 players in the Indian diamond industry. The company also expects polished diamond prices to remain firm for the next year, as exporters continue to pass onto consumers the rise in procurement prices for rough diamonds.
The Marketplace
• Buyers are being very cautious and selective in their purchases.
• The beginning of August saw some softness in pricing, but sellers were firm on prices for the India International Jewellery Show (IIJS).
• News that Zimbabwe rough diamonds have been cleared for export by the Kimberley Process is expected to increase rough supply in the market and exert some downward pressure on prices.
Article from the Rapaport Magazine - September 2010. To subscribe click here.