August is the most anticipated month of the year for the
Indian gems and jewelry industry because of the all-important India
International Jewellery Show (IIJS), organized by the Gem and Jewellery Export
Promotion Council (GJEPC). The 28th edition of IIJS, held August 4 to 8 in
Mumbai, in some ways resembled previous shows, with high expectations, new
players, an increased number of exhibition booths, considerable international
interest and hordes of visitors.
But there were some differences, too. Gold seemed to steal
the spotlight away from the diamonds and colored gemstones that have always
been the big draw in the past, despite the recent, rapid price increases in the
metal. And whereas international visitors and customers got most of the show’s
attention in previous years, this year domestic demand kept the exhibitors
busy, confirming the fact that India is gradually becoming a strong consumer on
its own for gems and jewelry.
In addition to IIJS, the industry turned out in August for
two other major events: India International Jewellery Week (IIJW), from August
1 to 5, and Martin Rapaport’s meeting on August 10 at The Taj in Mumbai (see
market report on page 56).
According to Rajiv Jain, chairman of GJEPC, IIJW is designed
not only to highlight the country’s jewelry designing capacity and capability,
but also to unveil new trends in jewelry design for the upcoming season.
IIJS 2011
The show was opened by Ahmed Bin Sulayem, executive chairman,
Dubai Multi Commodities Centre (DMCC) and P.K. Chaudhery, special secretary of
India’s Ministry of Commerce and Industry. Total show attendance was estimated
at 35,000, domestic as well as international, an increase of 5,000 from 2010.
Spread across a massive area of 42,000 square feet, 800 companies exhibited in
1,700 booths
The All India Gems and
Jewellery Trade Federation (GJF) used the show to launch a Jewellery
Identification (JID) card for the industry. The JID card is designed to
eliminate some of the identification-related problems faced by jewelers in the
transfer of valuables, as well as to provide a tamper-resistant credential for
use with government and security authorities. GJF said the first of the
proof-of-identity cards are due out in October and November.
Show Demand
“Diamond jewelry wholesalers and loose diamond players sensed
a lull during the first couple of days,” said Navin Sadarangani, director of
NYUZ, a Mumbai-based provider of
jewelry retail services, including sales training. “There were many new
companies offering gold bangles, which in previous shows were limited. The
chain manufacturers also expanded into gold and diamond jewelry. Platinum saw a
rejuvenated demand and lots of new retailers were adding on platinum products.”
Sanjay Shah, director of Gold Star Diamond Pvt. Ltd., Mumbai,
noted the reduced number of international visitors this year. “As for what was
selling, I did not see many new products, designs or concepts. Sadly,
there were too many pieces from Bangkok, Hong Kong and China. Gold did more
business then diamond and jewelry did better than loose diamonds. Bigger items
sold better than small, basic goods. Companies that had something innovative to
offer saw a lot of interest. Customers were interested in jewelry that had a
mixture of diamond shapes rather than just round diamonds. Some of this demand
could be because the prices in fancy shapes have not increased so much compared
to round.”
Despite lower-than-expected total sales at the show, few
exhibitors seemed disappointed. “People are very cautious this time with regard
to buying goods for stock,” said Sohil Kothari of Mumbi-based Fine Jewellery.
“What we saw was people making limited purchases — enough to meet their basic
requirements for the season — rather than the usual buying pattern, which would
be to buy sufficient goods to last until December. There was strong demand for
midrange goods, with higher-value items witnessing softer demand.”
“In terms of quantity of carats, this year we saw a marked
difference of 25 percent lower sales compared to 2010,” continued Kothari, who
attributed that decline to the widely fluctuating diamond prices. “Everyone was
treading the cautious path. They avoided bold buying because retailers are a bit
wary of the high diamond prices and they do not seem confident of passing them
on to their end consumers. I gauge that there was conservative buying
everywhere this year.”
In terms of specific product niches, Sucheta Khandwala,
managing director of Mumbai-based Hammer Plus, said “Wedding bands were in good
demand and we also witnessed a lot of interest in branded jewelry as opposed to
generic jewelry.” In loose diamonds, Khandwala noted certified diamonds had
good demand
Observing the show crowds,
Sadarangani noted the increasing number of females in attendance and as
exhibitors, which he says “shows that the trade is beginning to involve the
women of the family in the business in more critical areas.”
Praise and Complaints
Exhibitors praised the introduction of Club Elite at the
show, a private mezzanine-level
lounge where they could meet with customers to discuss business one-on-one away
from the distraction and noise of their booths and also meet with members of
the press. But there were also complaints about this year’s show, including the
exhibition floor layout, security delays, parking shortages and the uninviting
entrance to the show. Booths were not aligned in rows so there was some
confusion following a path through the exhibit. Attendees carrying cameras were
not allowed in and had to return to their cars and drop them off. Laptops were
subject to airport-like screening. In addition, Sadarangani criticized the
phone reception at the show site. “Mobile networks saw a lot of breakdowns and
there were many visitors who were planning to meet and connect, and they could
not get phone service to do so.”
“Why do we always seem to run out of parking space when
there’s plenty in and around the area?” asked Sadarangani. “Also, something
should be done about the entrance. You do not have the feeling you are entering
a jewelry show. It is more like ‘welcome to the jungle.’ First, you dodge the
security, then you dodge the potholes, then you dodge the muck and grime that
sticks to your shoes.”
Shah found fault with the
layout of exhibitor booths, which featured a grouping of booths in the center
of the exhibition area that blocked the view of booths across and beyond. In
addition, Shah questioned the requirement for exhibitors to have separate
booths for loose diamonds and jewelry. “Creating a separate loose diamond
section meant companies had to rent two booths but that meant a shortage
of booths for other players who should be given an opportunity to participate.
Not only did it incur more expense for the exhibitor but it was also a waste of
time for the visitor, who would have preferred to see all that the company has
to offer just by visiting a single booth.”
Reacting to those concerns, GJEPC’s Jain said, ‘We respect
the feedback received. Requiring two booths for exhibitors who have a presence
in loose stones as well as jewelry was not intended to cause any discomfort to
the exhibitors. On the contrary, we wanted to make sure they did good business.
The feedback we have been receiving over the years from visitors led us to take
this step. Visitors have expressed their wish to have a clear demarcation of
booths that dealt in loose stones and those that dealt in finished products.”
Article from the Rapaport Magazine - September 2011. To subscribe click here.