News

Advanced Search

Surat Must Pivot to Marketing, Says Rapaport

Jul 17, 2018 4:57 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT... Martin Rapaport has called on manufacturers in Surat to develop relationships with small US jewelers in an attempt to expand their sales and marketing.

The Indian diamond city, a hub for cutting and polishing, remains highly traditional, and must advance its trade if it wishes to survive, the Chairman of the Rapaport Group said in a speech at last week’s Surat Diamond Expo. To that end, young people entering the industry there should focus on trading and marketing as opposed to just manufacturing, he added.

At present, most of the city’s polished stones go to marketing units in Mumbai for distribution, meaning Surat has not developed as a significant center for diamond sales.

“Recognize that just because you know how to make diamonds, doesn’t mean you know how to sell them,” Rapaport said. “So, just making the diamond and saying ‘I’ll wait for the customer to come to me’ [is] not enough in the modern world.”

Smaller American jewelers should be the targets for sales as they are more likely to be open to buying Surat companies’ goods, Rapaport noted. Larger companies such as Signet Jewelers and Tiffany & Co., comprising about 60% of US buyers, no longer source from smaller open-market players because it is harder to trace the ethical origins of their diamonds, he explained.

“They buy very specifically, and they don’t buy on the open market…they buy from big sellers,” he added. “Maybe 40% of the demand are small, independent jewelers.”

Surat manufacturers must establish global online marketing and distribution capabilities to create demand and meet buyers’ needs, Rapaport said. Diamond buyers outside India seek detailed information about the diamonds, online access to them and ease of purchase, according to Rapaport.

Cutters should also only manufacture goods if they can make profit from them, he added.
Tags: Martin Rapaport, Rapaport Group, Rapaport News, Surat, Surat Diamond Expo
Similar Articles
The Diamond Office in AntwerpBelgium Diamond Shipments Drop
Oct 22, 2019
Belgium’s diamond trade slowed in September, continuing a downward trend for the year. A 25% decline in polished
DPADPA Chief Lieberherr Steps Down
Oct 15, 2019
Jean-Marc Lieberherr has resigned as CEO of the Diamond Producers Association (DPA), an organization he has led since
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2019 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.