IIJS Has Strong Attendance

India

By Zainab Morbiwala

August is an important month for the Indian gems and jewelry industry, with its flagship event — the India International Jewellery Show (IIJS) — and it newest promotion — India International Jewellery Week (IIJW) — both on the schedule. The show attracted more than 800 exhibitors, including a sizeable overseas contingent, and the two events hosted more than 30,000 visitors, the highest attendance for the past several years.
   Anmol Choksi, marketing manager of Kiran Jewels India, noting the very good response from buyers at the show, said, “I can safely say that this year our order size was double what it was in 2011. Still, overall, there weren’t too many visitors placing confirmed orders. There is overstocking throughout the industry and, as a result, fresh inventory is not being purchased.”
   Both the international and domestic buyers at the show appeared to be very cautious and conservative. Overall, it was lower goods that were being picked. VVS wasn’t on the agenda for many retailers simply because they all have this feeling that their customers aren’t loosening their purse strings in the current economic environment to spend on high-quality, high-priced goods.
   Rajiv Jain, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), the events’ organizer, reiterated the conservative approach of show attendees. “The economy globally isn’t in good shape so it is natural that players aren’t willing to take risks,” Jain said. “Also, the prices of diamonds are not showing any stability so the market is adopting a wait-and-watch attitude.”
   For more on the Indian market, see Trade Report on page 18.

GOVERNMENT COMMITMENT

The commitment of the Indian government to the gems and jewelry industry was demonstrated by the presence of Anand Sharma, Indian minister of commerce and industry, who formally opened IIJS.
The international attendees at IIJS this year included visitors from Bangladesh, China, Dubai, Hungary, Iran, Japan, Malaysia, Nepal, Poland, Russia, Saudi Arabia, Singapore, Hong Kong, Turkey and many more. Entire delegations attended from Thailand, Belgium, Israel, Turkey, Hong Kong, the United Arab Emirates (UAE) and more than a dozen other countries.
A participant from Turkey who wished not to be named said, “We are satisfied with the organizers and also the overall presentation of the show. Though we have not received a lot of inquiries from the visitors, based on the large number of attendees, it is definitely a very good place to be.”

REVIVING ANCIENT ARTS

One highlight of IIJS 2012 was the council’s initiative in promoting local artisans practicing the traditional art forms of bidri, bamboo, filigree and patwa. GJEPC’s Gem and Jewellery Skill Council of India has focused on building a greater awareness of these niche design talents and creating a market at home and overseas for their products, according to Jain.
IIJW was held prior to the show at the Hyatt Regency in Mumbai from August 19 to 23. Like past editions of the event, it met with a lot of public interest because of the high-profile participation of the media and Bollywood. The glamour quotient this year was the presence of more Bollywood celebrities than ever before walking the runway showcasing the designer and branded jewelry.
GJEPC Vice Chairman Sanjay Kothari said, “India is now very much responsive to buying diamond jewelry and we will make efforts to further the demand and consumption of diamond jewelry. We intend to allocate during the coming years close to $3 million annually toward various diamond jewelry events and promotions.”

DIAMOND DEVELOPMENT

Other good news in the month of August was the announcement by Rio Tinto that it plans to invest approximately $500 million in developing a diamond mine at Bunder in Madhya Pradesh (MP). The project is slated to begin commercial production in 2016.
In line with this initiative, the MP state government is in talks with investors to set up a base in Madhya Pradesh and it also has allocated a 35-acre piece of land to set up a diamonds, gems and jewelry park in the Rangwasa village of Indore. The government’s goal is to transform Indore into a hub like Surat. To further those efforts, GJEPC’s Jain met with the MP Chief Minister Shivraj Singh Chauhan, asking for tax relief for the move.
“The diamond processing industry across the country is currently paying a uniform 33 percent tax to the government,” Jain said. “We are seeking anything lower than the prevailing tax and a long-term commitment from the state government of MP for considering an investment plan or else it makes no sense to shift manufacturing units from Surat to Indore.”