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India
By Zainab Morbiwala
August, the eighth month of the calendar year, has always been special for India. For the country, August marks the anniversary of India’s independence and for the gems and jewelry industry, August witnesses the spectacular trade shows: the India International Jewellery Show (IIJS) and India International Jewellery Week (IIJW). In addition, this August, the Rapaport Group held its annual Rapaport International Diamond Conference in Mumbai. (See full conference coverage in the INDUSTRY section.)
But, against the backdrop of these popular trade events, the current instability of the rupee, which reached a record low in August, injected a note of caution in the industry. Vipul Shah, chairman of the Gem and Jewellery Export Promotion Council (GJEPC), which organizes both IIJS and IIJW, said, “Unless we see stability in the currency, there will be a fair amount of volatility in the market. There is more of a wait-and-watch situation right now. As for the IIJS, we had yet another fantastic show this year. With a record number of 880 exhibitors and 1,750 booths, the inflow of international visitors was 1,200. Gold jewelry saw a very good response, although loose diamonds didn’t show much movement in higher-end goods. Medium to lower end was what attracted the visitors.” IIJS reportedly attracted more than 35,000 visitors, an increase of almost 25 percent year on year. In 2013, IIJS celebrated its thirtieth anniversary and IIJW is in its fourth year. Both shows have managed to create a niche for themselves in the industry and are considered on a par with other prominent international shows. “IIJS over the years has turned into a Goliath of an event, witnessing unsurpassed demand, with a long list of participants awaiting their turn to exhibit their products,” said Rajiv Popley, director of Popley and Sons Group. “GJEPC’s management of the event has been on a par with other international trade show expertise.” Colin Shah, managing director of Kama Schachter, said that “Although the show was well received by retailers from all over, not everyone was forthcoming in placing orders. Overall, I believe that gold and diamond jewelry did very well. Our order books look good and I am glad that our customers appreciated our new collection. But then, looking at the market conditions, we are only cautiously optimistic about the order conversions.”
Branding is increasingly visible — and important — in the gems and jewelry industry. Colin Shah said that “A branded offering provides an assurance of quality, design and service. Branding activities like innovative marketing, creative packaging, regular advertising, public relations activities and a presence on social media lend distinction and help in increasing brand recall. A distinct branded offering helps companies connect with the audience and builds the ‘trust factor,’ an integral part of any jewelry purchase.” Popley pointed out the importance of social media in marketing products and the importance of being relevant on social media to tap the ever changing consumers of today. “The use of Facebook Connect,” added Colin Shah, “helps in converting the 75,000 existing fans and visitors to potential customers, thus ensuring a sizeable database of potential customers to talk to even after they leave the web store.”
Popley is of the opinion that apart from the round shapes and baguettes, this season will also witness a high demand in fancy shapes, including marquise and pears. In addition, the demand for white diamonds is expected to be high, although fancy yellow colors are seeing colossal demand internationally as well as domestically. Metals are presenting special challenges for the industry right now, including the recent fluctuations in metals prices, the import duty, shrinking margins and the lack of innovation in product range or designs. Retailers are continuing to refrain from going all out and stocking their inventory and are buying only according to demand. “The upcoming festival and wedding season will be challenging for the industry. With the price of metal very volatile recently, I foresee that demand for diamond-studded, lightweight and affordable jewelry will go up this season,” said Colin Shah. Although his company is hoping to increase its sales by 10 percent to 20 percent this buying season, he noted that “with more players exploring and expanding their geographical reach, the competitive intensity in the industry has increased. In order to compete, jewelry retailers will need to differentiate themselves from the rest of the crowd by way of innovative designs, increased consumer touch points and by paying more attention to their brand offering.” “There is a huge gap in demand and supply chain at the moment, which may ease a little during the buying season,” concluded Colin Shah. “We will have to be optimistic and wait and watch.”
Article from the Rapaport Magazine - September 2013. To subscribe click here.
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