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India
By Zainab Morbiwala
While not much movement has been seen in demand, industry experts seem optimistic that demand is picking up and the industry is entering a positive phase.
Speaking exclusively with Rapaport Magazine, Dinesh Lakhani, director, Kiran Gems Pvt. Ltd., shared, “There is a general lag in the market as per the business cycle. We see demand for certified diamonds in most colors and clarity stable up to 1.50 carats. In loose, there is a good demand for small polished diamonds in all colors and clarity. However, we are not witnessing a good demand for VVS category goods and I see delayed signs of recovery for them.” According to Mehul Choksi, chairman Gitanjali Group, the market for branded gems and jewelry in India is picking up pace, with players witnessing strong growth of about 25 percent. But he mentioned that the local jewelers have seen a dip in sales. Choksi added that customers are looking at buying from reliable sources rather than from the traditional, smaller jewelers who most often do not have the necessary certifications in place. This perhaps is an indication that Indian customers are moving toward investing in jewelry from the branded companies who can provide certification. In India, there is a trend for providing a katcha — a temporary bill, which is just an estimate of the jewelry written on a piece of paper but it is not a legal bill. Local jewelers charge a tax on original bills and the majority of people do not request an original bill in order to save shelling out the tax to obtain it. A customer at one of the jewelry chains noted, “My son is getting married in March. I was tempted to visit my local jeweler. But with government policies changing, where a pukka bill — a final bill — may become necessary as proof of purchase, I would rather buy my jewelry from these new stores being opened by branded players like Tanishq, Kalyan Jewellers, etc.” Commenting on the domestic demand for jewelry, Choksi noted, “Jewelry less than about $3,000 is witnessing a good demand and jewelry between the range of approximately $750 to $1,500 is expected to see a rise in demand to the tune of about 30 percent in the coming months.”
Celebrating its Golden Jubilee, the Gem & Jewellery Export Promotion Council (GJEPC) continues to mark its 50-year journey with plans to implement many initiatives to boost the industry within India and internationally as well. In a press statement, GJEPC pointed out the significant role it has played over the past five decades in catapulting the Indian gem and jewelry industry from a $28 million export industry when it launched in 1966, to an impressive $39 billion export industry today. The initiatives planned included hosting several events, such as the 2017 International Diamond Conference, annual awards and charity dinner. GJEPC will host the India Gem & Jewellery Awards (IGJA) 2016 on March 18 to acknowledge industry players for their exemplary performance during 2015 to 2016 in key areas, including growth, export excellence, marketing initiatives, innovation, value additions and investment in R&D, among other attributes. In early February, GJEPC hosted a Finance Seminar, which was ancillary to the World Federation of Diamond Bourses (WFDB) Presidents’ Meeting in Mumbai. During the WFDB meeting, the presidents of the different bourses agreed to work in close cooperation with the Diamond Producers Association (DPA) in order to help boost its generic diamond marketing efforts. GJEPC has been devoting its efforts to curbing the mixing of lab grown and natural diamonds. In a press statement, GJEPC said that the DPA announced an initiative to combat undisclosed synthetic diamonds by establishing an independent diamond screening equipment-testing lab to gauge the range of detection machines available. DPA’s CEO Jean-Marc Lieberherr explained, “The project will be led by the DPA, but will involve key industry organizations, including the WFDB and GJEPC, and main equipment manufacturers so that the solution delivered meets the needs of the industry and satisfies the manufacturers’ expectations of independence and objectivity.” To facilitate easy access to the latest technology for diamond cutting and polishing for artisans and small business units from remote/small towns, GJEPC, in association with the Government of India, opened the first ever Common Facility Centre for the gems and jewelry trade at Visnagar in Gujarat. Rita Teaotia, Commerce Secretary, was present at the event, along with key members from the council.Article from the Rapaport Magazine - March 2017. To subscribe click here.
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