|
|
U.S. Wholesale
By Shuan Sim
The subdued growth seen during the holiday months of November and December 2015 continues into January 2016, though wholesalers have to contend with challenging prices. “I was expecting more, but I can’t complain,” said Betty Livieim, president of American Gem Corp., a diamond importer and wholesaler based in New York. She noted that clients have been looking for better-quality goods — around VS clarity in colors F through H — yet want prices that make it challenging for those in the midstream. “Even if I offer a very decent price for a stone, they still want it cheaper!” expressed Livieim, describing buyers having an eye out for the best bargains as representing the prevalent mood in the market. Roy Wachsler, a sales executive from Dharm International, a New York subsidiary of Dharmanandan Diamonds Pvt. Ltd., said that business has been slower than usual but he believes that they came out okay. “Customers are getting smaller sizes and offering lower prices,” he commented. “Small” goods and “big” goods — from .4 carats to 1 carat and 5 carats to 6 carats, respectively — fared well in recent months, with anything in between struggling a little. Diamantaires reported having no inventory trouble for most goods that they need despite a reduction in manufacturing, and they did not foresee any shortages any time soon.
The January India Diamond Week in New York was the fourth iteration of its kind held at the Diamond Dealers Club (DDC) in New York City. Many exhibitors shared that the first two days of the show were great, but traffic dropped off sharply by the third day. The show attracted about 1,000 buyers and 70 exhibitors — 15 of whom were from India, brought in by the Gem & Jewellery Export Promotion Council (GJEPC). Many were of the opinion that the show in August 2015 was better, which in turn was eclipsed by the January 2015 show. “Everybody wants to sell but no one wants to buy,” said Livieim, who was exhibiting at India Diamond Week for the first time. Some felt that the lackluster traffic might have been due to the show being too close to the gem and jewelry shows in Tucson, Arizona, and Miami, Florida, both in late January, and the upcoming shows in Hong Kong in March. Chirag Parikh, director of Janam Corporation Pvt. Ltd., a manufacturer based in Mumbai, said that it was “definitely worth it” to return for their second India Diamond Week. “We brought many Gemological Institute of America (GIA)–certified goods, and the last time we didn’t see much response for some fancies such as princesses, so we were able to prepare this time around,” Parikh said. David Lasher, managing director at DDC, commented that some returning exhibitors who brought the right kind of goods did exceptionally well at this show.
For some other exhibitors, the opportunities to make new contacts and reestablish existing relationships were the main draw of the event. “If I were only to look from a sales perspective, then this wouldn’t be a good show,” claimed Nilesh Chhabria, chief operating officer of sales and marketing at Finestar Jewellery & Diamonds Pvt. Ltd., a Mumbai manufacturer. He explained that this show allows customers who only know them through trading platforms to see them “face to face, which will make it easier to do business in the future.” The price challenge that buyers presented at the show surprised some Indian diamantaires. “The buyers here seem to have better bargaining power, as many of them have cash in hand,” commented Akshay Dugar, a partner of Mumbai manufacturer Choice Diamond. “In Mumbai, I can usually get prices close to my asking prices. I would probably make more money sitting in Mumbai than here in New York,” he said. However, he reflected that this had been a good show for him due to the business opportunities presented and added that he would come back for the next show. The Indian exhibitors felt that the U.S. diamond market, compared to other global markets, is stable. “The U.S. market is never bad,” said Chhabria. “After all, this is where the bridal jewelry tradition is firmly established.” While diamond bridal jewelry is slowly finding a foothold in India, it is still easier to sell bridal-oriented goods such as rounds for rings in the U.S., he added. Compared to the Indian wholesalers, the New York diamantaires were less certain of a rosy outlook for 2016. They felt that there have been no clear signs from the economy and the industry promising them good sales ahead. “If I’m going to base my assumptions on this show,” said Wachsler, who exhibited at the show, “then probably not.”Article from the Rapaport Magazine - February 2016. To subscribe click here.
|
|
|
|